Fuel up to 11c cheaper per litre in Tralee than in Killarney

A petrol price battle is looming between Kerry’s two main towns.

Tralee is between 10c and 11c cheaper per litre than Killarney, which could mean a difference of up to €5 per tank fill-up.

Price variations between the towns range from a low of 145.9c to a high of 155.9c for diesel, and a low of 151.9c to a high of 162.9c for unleaded petrol.

Prices in the Limerick area in recent weeks have been around 160.9c for unleaded and 157.9c for diesel, while in some large West Cork towns, prices in the past few days have been around 154.9c for unleaded and 150.9c for diesel.

Killarney town councillor and former mayor Seán Counihan said motorists found it difficult to understand how there could be such a difference in prices in towns 30km apart.

“Petrol is very expensive in any case and it’s not right to penalise drivers even more.

“It’s also bad for the image of Killarney as a premier tourist town and Killarney is also losing business because of the high fuel prices. At the same time, petrol is cheaper in areas just outside Killarney.

“Several Killarney people tell me they take the opportunity to fill up when they go to Tralee and other towns.”

David Blevings, spok-esman for the Irish Petrol Retailers’ Association, said retailers were free to set their own prices and this was influenced by their supply costs, if they had a forecourt shop selling other goods, and competition.

He also said fuel retailing was a very low margin business, with almost 60% of the pole price paid in excise duty, carbon tax, and Vat.

“Many legitimate traders are struggling to survive in the current economic climate with margins being continually squeezed and less fuel being sold at the pumps.

“It is no secret that the majority of a retailers’ profit is obtained from the shop and one method of increasing footfall to a store is to sell fuel at low cost in an attempt to maximise profit from in store purchases.

“This will cause disparity in pricing within a county as retailers compete for business.”

He also said the increasing availability of smuggled and adulterated fuel around the country was contributing to fuel price variation

Mr Blevings said there was a difference of 52c per litre between road diesel and agri diesel (fuel for off-road use) which was why laundering had become an attractive proposition for individuals who could sell it on to unscrupulous retailers for a much cheaper price than regular diesel.

The 2012 Revenue review reported an increase in the number of seizures of illegal fuel and laundering plants, he pointed out, adding the illicit trade was now a real threat to the livelihood of honest traders, petrol retailers, and forecourt operators.