PETROL stations across Worcester have shared motorists’ frustration over rising fuel prices, revealing profit margins so low they make just 50p on every £20 sold.
It comes as the battle begins to keep the price of diesel on Worcester forecourts below £2 a litre as many stations show prices around the £1.99 mark.
Phil Marsh, manager of Clerkenleap Service Station, on Bath Road, said many independent businesses in Worcestershire are balancing on a tightrope at the moment.
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“It is very frustrating. It is very hard work and not much reward,” Mr Marsh said.
“We get 8p margins, so if someone puts £20 of fuel in, we get 80p, and the card processing fee is 30p per payment.
“That makes 50p.”
He explained that this slim margin does not cover staff wages or other running costs, leaving many retailers struggling to keep fuel prices low as diesel and petrol rise.
Why is fuel in Worcester so expensive?
Retailers say wholesale fuel costs have climbed week after week, starting at £1.68, including VAT, to buy diesel three weeks ago.
Mr Marsh added that the price for him to buy diesel last week rose to £1.83, then to £1.91 yesterday (Monday), meaning he and many others have been forced to charge nearly £2 a litre.
Profit margins vary from one retailer to another, depending on factors such as wholesale fuel costs and local competition.
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The £2-per-litre mark for diesel is a price many petrol stations try to avoid, as it can drive customers to cheaper alternatives.
However, Mr Marsh said profit margins are now so tight that once one retailer is forced to break through the £2 barrier, many others are likely to follow soon after.
Other Worcester petrol stations, like BP on Whittington Road and Daniel’s Petroleum, said customers have confronted them, asking why prices were rising so much.
A spokesperson for Daniel’s Petroleum, a business based on the A449 in Malvern, said: “We are making less because we are trying to keep under the £2.
“We try to undercut prices because we have a road closure and to keep volume up, but people still come in asking.
“It is frustrating for people because the price goes up and up.
“But there are no shortages in supply and we have not had that in a long time.”
Petrol Retailers Association concerns over rise in fuel thefts
Previously, we reported on thieves filling up and driving off without paying because of high pump prices.
It is a pattern that has been replicated across the country because of high prices driven by the US war with Iran and the cost of living.
