What should NI drivers expect as pump prices rise?

Niall GlynnBBC News NI
Getty Images A close up stock image of an arm with a smartwatch with a light green strap putting a green unleaded petrol pump handle in to a car. The car is white.Getty Images

When lorry driver Rod Quaite pulled up to the forecourt of a supermarket to fill up with diesel last weekend he found it had run out.

On his work journeys in his lorry he has noticed prices rising - how much they have gone up by often depends on where in Northern Ireland you are trying to fill up.

His experience is becoming more and more common since the United States and Israel attacked Iran and the subsequent Iranian retaliatory attacks across the Middle East.

BBC News NI has been looking at what is going on at the pumps, whether there are shortages and if panic buying is taking place.

Why are prices so high?

Figures published by the Consumer Council on Thursday showed the average price of a litre of petrol in NI was £134.5 and diesel £149.6.

A week before on 5 March, the average was £126.2 and £133.8 respectively.

The most expensive town for petrol on 12 March was Magherafelt in County Londonderry at £139.9 while Omagh in County Tyrone was the most expensive for diesel at £164.8.

Since the war began Brent crude - which is the global benchmark for oil prices - has risen, from $73 a barrel to $106 as of 9 March.

Brian Donaldson, chief executive of the Maxol Group which runs petrol stations across Northern Ireland, said with 20% of global oil shipments passing through the Strait of Hormuz, any pause or restriction in transit had an immediate impact on pricing.

"While most of our product supply comes through the UK, the global nature of the oil market means we will not be insulated from significant price increases," he said.

"On a regional level, retail pump prices adjust as new deliveries replace existing stock.

"Over the past 12 days, cost prices have risen by 11.38p a litre excluding VAT for petrol and 22.38p a litre excluding VAT for diesel."

More than 50% of the pump price for both diesel and petrol goes to the UK government in taxation.

Is Northern Ireland facing a shortage of supply?

Brian Donaldson has short brown hair combed to the side and is wearing a dark blue wool coat, blue shirt and purple tie. He is standing outside in front of a large, grey two-story building and a low wall painted in red and white stripes can be seen behind him.
Maxol's Brian Donaldson said there were no supply issues for Northern Ireland

Donaldson said there were no supply issues for petrol or diesel.

"The supply chain remains robust, and sufficient product is available to meet the current high level of demand," he said.

"Unlike previous price shocks or disruptions, such as Russia's invasion of Ukraine, which led to the banning of Russian refined products, particularly diesel, and created a situation where product was physically unavailable within the supply chain, the current situation is primarily a pricing issue."

The Irish Petrol Retailers Association (IPRA) also said retailers were not seeing shortages.

"Belfast and Derry terminals are well stocked with product being made available across all grades presently," the IPRA's David Blevings said.

Is panic-buying happening?

The Consumer council said it did not have "specific evidence of panic-buying petrol and diesel".

Donaldson said there was "short-term spike in demand" during the first seven days of the war.

"This appeared to be driven more by consumers anticipating potential price increases rather than panic buying in response to fears of supply shortages," he said.

"Demand has since stabilised."

The consumer experience

Rod Quaite Rod Quaite is bald with a grey goatee beard.He is wearing a black t-shirt and is smiling. The necks of two glass bottles can be seen at the bottom of the image - behind him is a window with bars on it.Rod Quaite
Rod Quaite said he had noticed a wide variance in diesel prices across Northern Ireland

Lorry driver Rod Quaite lives in Broughshane near Ballymena in County Antrim.

He told BBC News NI he had noticed differences in the size of the price increases during his journeys for work.

"The further down towards Enniskillen you go, the dearer it's getting - the cheapest I saw was £1.64," he said.

"What I can't understand is why diesel's been hammered so much and petrol isn't.

"Yes, petrol's gone up a bit, but it's gone up nowhere near as much as diesel.

"It'll not be long until it's hitting £2 a litre."

Despite the rises he said he had not changed his driving habits.

"I don't drive very much out of work, I get enough driving at work, but I like to keep the tank full for emergencies," he said.

"I'm not the best paid person in the world, but I'm in the position where I can afford it.

"Long-term, I don't know."

Andrew McCusker Andrew McCusker has short dark brown hair and is wearing a white shirt, dark tie and dark waistcoat. He is smiling in the picture Behind him is a stone wall.Andrew McCusker
Andrew McCusker checks the price of petrol each day to find the best price

Andrew McCusker, who lives outside Rathfriland in County Down, checks a fuel price comparison website to find the cheapest fuel to put into his car.

"You could go to one petrol station and it could be X price for petrol and then you go a mile down the road and it could be 10p, 15p a litre dearer," he said

"You just ask yourself why is that the case?"

He said he was lucky his daily commute to work was only 10 miles either way.

"As of now I'm OK just travelling by car, the car just gets me from point A to point B," he said.

"But if we face the possible scenario where the fuel really does go up - let's say petrol goes up to £1.80 or £1.90, will I consider looking at public transport and see if it's maybe a little bit cheaper? Yeah that is one scenario."

Are prices being regulated?

The Competition and Markets Authority has said it plans to step up monitoring of petrol and diesel prices across the UK.


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