Petrol price | Cost of living: Small garages ask chains to lower their gasoline costs

Independent garages are calling on big chains to slash petrol prices as the cost of living crisis continues.

According to RAC data, petrol dropped nearly 9p to 182.69p per liter in July and diesel dropped nearly 7p to 192.38p.

Plas Acton Garage in Wrexham has lowered the price of gasoline below 167 pence, stating that it only makes cents per liter of fuel.

Drivers may anticipate lower gas prices as the impact of higher prices on global demand starts to take hold, according to energy sector expert Carol Bell.

Marcus Ansloos of Plas Acton stated: "Unfortunately, the more powerful players in the sector haven't been lowering their pricing.

"We have forced everyone in north Wales to start examining this pricing and bringing them down as a result of what we are doing.

"We have a tanker delivering to our forecourt every day of the week, and we are selling out every day, so it is sustainable." Wholesale prices reached their peak at the beginning of June, but have since declined along with oil prices as recession fears in the US and elsewhere have reduced demand for oil.

The price of Brent crude, the global standard for oil, has dropped to approximately $100 per barrel after skyrocketing in response to Russia's invasion of Ukraine.

According to Bailey's Garage in Abergavenny, rates were lowered to 167.9p per liter on Friday in response to declining gasoline costs.

We receive the pricing every morning since we are independent, according to Ian Bailey. We operate on a margin, draw from it, and charge that as the price for the product.

Chain stores purchase in bulk, therefore there is a delay between the decline in oil prices and the sale of their unsold inventory.

The supermarkets operate on a one-month lag, so when we were at our most costly seven weeks ago, they had the old stock they could sell at a discount, according to Mr. Bailey.

But now that they still have the outdated inventory, they must charge more for it.

The RAC issued a warning that many pump price cuts had not yet accurately reflected the decline in fuel's wholesale price.

According to Dr. Bell, the price of diesel and gasoline in a garage will often change when the owner receives a large delivery.

Thus, there will be a delay. They will charge a margin above what they originally paid for it if the tanks in the garage are fuller.

Once VAT, duty, and the cost of bringing in fuel were taken into account, she continued, the margin for garages was only approximately 10%, which was relatively thin.

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