THE owner of a gas station that makes headlines for selling fuel at rock bottom prices has said he’s baffled why other stations aren’t doing the same.
Bailey’s Garage in Abergavenny, Wales, attracts drivers from long after it started selling unleaded petrol for 169 pence a litre.
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On Friday, it cut its prices even further to 167.9 pence, Wales Online Reportsmaking it about 20p cheaper for lead-free than most supermarkets.
According to the RACthe current average price for lead-free is around 187p.
However, wholesale petrol prices, which peaked at over £1 per liter on June 1, fell below 80 pence per liter more than two weeks ago.
The moment the AA said the change could see the cost of a tank drop by £10 within fourteen days.
But Luke Bosdet, the AA’s spokesman for fuel prices, also warned that the projected savings would only come “provided the fuel trade is willing to pass them on”.
Bailey’s Garage owner Ian Bailey said it only seemed fair to him to pass on the declining wholesale costs of fuel prices to consumers.
He added: “I also wonder why other people haven’t lowered their prices.
“I don’t understand why we’re so cheap. We’ve always been cheap. I could say it’s the same as other garages and we’d laugh.
“But these are difficult times and we are happy to pass the straw on to the customer.”
Ian said he was four times as busy as he had ever been in the 50 years he’d had the garage after slashing its prices.
He said that because supermarkets buy their fuel at least three weeks in advance, their prices were based on the amount they bought it for at the time.
But, he added, this worked the other way around and there had been times when supermarkets offered cheaper prices than his garage.
The gas station owner said he wasn’t sure how much he was making from each gallon. Adding gas stations rarely benefited fuel prices, but simply responded to daily fluctuations in costs.
How can I spend less on gasoline?
Because gasoline prices are so high right now, this can put a big cost on your budget.
It means it will be more expensive to take the kids to school or commuting.
But there are a number of things you can do to reduce costs.
You can always check petrol prices online before going to your nearest gas station.
Websites like Petrolprices.com lets you search for gas stations with the best prices near you.
It’s free to use for your first 20 searches.
A full tank of gas can put a lot of strain on your car, so sometimes it’s best to fill it half way, too.
Or you can try using a loyalty program – many gas stations use them and they can see that you are accumulating points that can be used to buy your gas.