CONSUMERS have been urged to work with the States to drive down the cost of petrol. It is claimed that garages are hiding high profit margins behind a smokescreen of big discount deals.
‘The evidence of large percentage discounts advertised conclusively proves our assessment that retail petrol margins on Guernsey have become established above 25%,’ said independent oil consultant James Milne, who carried out the investigation for the Commerce and Employment Department.
‘Even after deducting 15% discounts, retailers will still be making sufficient profits to meet the greater operating overheads they face in Guernsey, stay in business and produce favourable returns.’
It is proposed that the island should follow the UK system of clear pump prices, displayed to passing motorists, which are paid by all.
In the UK invariably all fuel is paid for at time of purchase.
Mr Milne describes the Guernsey system, where many people buy on account and pay up to two months later at a discount, as depending on ‘a number of illogical factors’.
He said that even if some locals got a better deal at one garage or another, for certain all the visitors who filled up while in the island were paying over the odds for their fuel.
The States could make it law that prices must be displayed on the roadside, and that it should be the lowest available to any customer. It is recommended that if this price is conditional, then it should be marked at the pumps and at point-of-sale.
‘If pump prices are held to be a problem for politicians, then it is our recommendation that consumer power is harnessed to make motorists more sophisticated in their purchases,’ said Mr Milne.
‘This may be contrary to the ﾓvillageﾔ lifestyle of islanders, but will sustain a stronger drive towards driving down pump prices than any form of prescriptive price control imposed by the States.’
Article posted on 16th May, 2007 - 12.00am
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