Madam, - In advising motorists to shop around for the best petrol prices, Conor Faughanan of the AA makes a statement which is untrue in today's petrol marketing climate.
He says that the more motorists shop for the best prices every time they fill their tanks, the better the competition will become (The Irish Times, December 28th).
While this may seem to be true, it actually works in reverse when giant companies such as Tesco enter the market. This has been illustrated here in the Waterford area in recent months.
Tesco recently opened a petrol station in Waterford and already the only petrol station in the outlying village of Dunmore East has closed its doors for the last time. This was a station with a tradition of serving local people for over 30 years, but it was no longer viable to keep it open.
If all drivers do as Mr Faughnan suggests, more small outlying stations will have no choice but to close shop as well. And when enough small stations have closed, the bigger players will have enough power in the market to raise the prices to the level they want. - Yours, etc.,
DANIEL YODER,
Dunmore East,
Co Waterford.