Motorists and the price of fuel

Sir, – On a drive to Dublin earlier this month, most petrol prices on the way were higher by up to 8 cents a litre than I could buy locally, and on Christmas Eve driving to the midlands the price was higher by 7 to 9 cent a litre in most outlets. This is a very significant variation.

The National Consumer Agency (NCA) in its report of December 2008 stated that, “Absolute fuel price competitiveness in Ireland would appear to be most significantly influenced by the effects of local competition. Areas with larger numbers of fuel retail outlets typically enjoy strong price competition, with the converse applying in sparsely serviced areas.”

This conclusion by the NCA may apply when petrol prices are rising, as petrol prices are adjusted upwards within hours of an oil price rise. The conclusion does not apply when prices are falling. One wonders why. – Yours, etc,

KEVIN TREACY,

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New Ross,

Co Wexford.