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West Country petrol price hike is bad news for tourism

Holidaymakers driving to the West Country face petrol prices that have jumped almost half a penny more per litre than the average monthly rise across the UK, says The AA Motoring Trust. This could deprive a tourist industry, already losing out heavily to high petrol prices, of another 1 million in peak holiday season.

The AA Trusts Fuel Price Report for July shows that the difference in average UK petrol price from mid-June to mid-July was 1.6 pence per litre higher, rising from 95.9 pence a litre last month to 97.5 this month. However, drivers filling up in the South West are paying two pence more at 98.1 pence per litre. Wales is now the most expensive region for petrol at 98.2 pence a litre, although the rise was a more moderate 1.7 pence.

The average price of petrol in the West Country has become the second highest in the country, compared to last month when it was fifth and almost on a par with London. The average UK price of diesel rose a penny from 98.1 pence per litre in June to 99.1 this month. In the South West, the rise was much closer to the average, from 98.3 pence per litre to 99.4.

In 2004s peak holiday season, tourists made 4,706,800 trips by petrol car to the West Country. If each trip includes a typical 50-litre refill at destination, the 0.4 pence additional rise in the West Country saps an additional 941,360 from other parts of the tourist economy1. This is on top of the extra millions of pounds that will be lost as holidaymakers refuel on route and pay an average UK petrol price that is nine pence per litre higher than this time last year.

This local price hike will be a further blow to the tourist industry in Devon, Cornwall and neighbouring counties as more visitors money is swallowed up by the added cost of driving to resorts, says Ruth Bridger, petrol price analyst for The AA Motoring Trust.

The higher rise can in part be explained by the higher volumes of car fuel being sold in the West Country during the tourist season. Petrol stations, that may receive one delivery a week, may need more frequent deliveries, making their forecourt prices more vulnerable than usual to market price fluctuations.

However, the price of diesel in the West Country rose only marginally more than the UK average of a penny and it is possible that some petrol retailers are riding the tourist wave with higher prices. This is to the detriment of other tourist businesses.

The AA Motoring Trust urges these car fuel retailers to remember that they will also reap the benefits of the tourist trade from selling other summertime goods, such as drinks, ice creams, sweets and driving necessities.

The July fuel price report is available at: www.aatrust.com/fuelwatch.

NOTES TO EDITORS: 1 In 2004, there were 20.5 million tourist trips to the West Country, of which 82 per cent were by car. Of these 16.81 million car trips, 35 per cent took place from July to September. Subtracting 20 per cent diesel cars, the total number of petrol car tourist trips to the West Country in peak season was 4,706,800.

Regional petrol prices for mid-July, with mid June in brackets.

Northern Ireland 97.8 p/ltr (96.3)
Scotland 97.3 p/ltr (95.9)
Wales 98.2 p/ltr (96.5)
North 97.5 p/ltr (96.0)
North West 96.9 p/ltr (95.1)
Yorkshire & Humberside 97.2 p/ltr (95.4)
West Midlands 97.5 p/ltr (95.8)
East Midlands 97.5 p/ltr (95.8)
East Anglia 97.8 p/ltr (96.7)
South East 97.6 p/ltr (96.2)
South West 98.1 p/ltr (96.1)
London 97.4 p/ltr (96.0)

UK Average 97.5 p/ltr (95.9)

Car fuel prices are provided by Catalist Ltd & Arval