Shoppers can fill up after shopping at Tesco

SUPERMARKET giants Tesco yesterday sparked a possible price war after it opened its first petrol filling station.

The petrol station in Killarney, Co Kerry, is beside Tesco’s store on the east side of the town and is offering the cheapest petrol in the area, plus petrol price cuts for supermarket shoppers. Prices have been cut to 84c a litre for unleaded and to 76c for diesel. This is under 2c cheaper than other outlets in the town.

Tesco is planning to open three further petrol stations in Dundrum, Finglas and Maynooth early next year.

The Society of the Irish Motor Industry (SIMI), which represents 1,600 companies in the motoring sector, criticised the move.

“This will lead to closure of all other stations in the area.

“The other shops won’t be able to compete and that is simply bad planning that will destroy the town. It will have a very bad effect on rural renewal and we are appealing to Bord Pleanála to overturn this decision immediately,” SIMI chief executive Cyril McHugh said.

The SIMI unsuccessfully appealed Tesco’s plans to open petrol outlets to an Bord Pleanála. Tesco’s reduced petrol prices will result in the mass closure of smaller stations throughout Kerry and the company will gain a monopoly in the market, according to Mr McHugh.

“This type of selling in Britain has become so bad that some local authorities have to subsidise small stations just to stay open,” he said.

However, Tesco defended its decision and promised to offer customers more choice.

“This is better for the consumer and there is no evidence to substantiate the claims the SIMI are making,” Tesco spokesperson Dermot Breen said.

It’s believed grocery sales will rise by more than 30% as a result of cheap petrol prices at the Killarney store.

Tesco Ireland was formed in 1997 following the acquisition of Quinnsworth and Crazy Prices. The company is the largest food retailer in Ireland, operating 76 stores nationwide, and employing 10,200 people.