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Business

‘Rotten month’ for drivers as retailers refused to pass on petrol price savings

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DECEMBER 2021 was a “rotten” month for drivers as they were taken advantage of by petrol retailers the RAC has claimed.

The RAC told The Herald that despite wholesale prices meriting big cuts at the pumps the average price of petrol in the UK fell by just 2p a litre in December meaning drivers paid £156m more than they should have.

Unleaded dropped from 147.47p a litre to 145.48p when drivers should really have seen prices nearer to 135p “had retailers played fair instead of taking far bigger margins than normal.” The RAC said.

Diesel dropped by just under 2p a litre from 150.80p to 148.92p when drivers should have been paying around 142p. The motoring organisation has claimed.

“Instead of their long-term margin of 6p a litre, retailers took an average of 16p a litre on petrol and 12.5p on diesel in December making forecourt prices far more expensive than they would have been, had retailers not changed their fuel pricing strategy.” The RAC said.

The price of a litre of unleaded on the wholesale market, including delivery, averaged 106p across the month.

“Had a 6p margin been taken drivers would have seen an average petrol pump price of around 135p after applying VAT at 20%.”

“The average wholesale cost of delivered diesel was 112p a litre which, with the usual 6p retailer margin, would have given a pump price of around 142p.”

“This means it has cost petrol car drivers £6 more to fill up a typical 55-litre family car than it should have (£80 v £74) and for diesel nearly £4 more with a tank costing £82 at the end of the month instead of £78.” The motoring organisation said.

The RAC estimates retailers’ refusal to reflect lower wholesale prices at the pumps cost petrol car drivers a huge £156m in December, or the equivalent of £5m a day.

RAC fuel spokesman Simon Williams said: “December was a rotten month for drivers as they were taken advantage of by retailers who rewrote their pump price strategy, costing motorists millions of pounds as a result.”

“Their resistance to cutting prices and to only pass on a fraction of the savings they were making from lower wholesale costs is nothing short of scandalous.”

“The 10p extra retailers have added to their long-term margin of 6p a litre has led to petrol car drivers paying £5m more a day than they previously would have.”

“In the past when wholesale prices have dropped retailers have always done the right thing –eventually – and reduced their pump prices.”

“This time they’ve stood strong, taking advantage of all the media talk about ‘higher energy prices’ and banked on the oil price rising again and catching up with their artificially inflated prices, which it has now done.”

“The trouble is every extra penny they take as margin leads to drivers paying even more as VAT gets added on top at the end of the forecourt transaction.”

“This means the Treasury’s coffers have been substantially boosted on the back of the retailers’ action. We urge ministers to push retailers into doing the right thing for consumers.”

An analysis of RAC Fuel Watch data reveals Asda had the cheapest petrol at the end of the year with a litre costing an average of 141.81p at their stores, with Sainsbury’s not far behind at 142.57p.

Asda also sold the lowest priced diesel at 144.9p a litre ahead of Tesco on 145.8p. The average price of motorway unleaded at the close of December was 160.55p while diesel was higher still at 163.43p.

Business

Holyhead closure: Storm damage could delay reopening until March

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HOLYHEAD port faces an extended closure following significant storm damage, with fears it may not reopen until March. The disruption has caused widespread consequences for trade, travel, and postal services across the Irish Sea.

The Terminal 3 berth, used by Irish Ferries, sustained extensive damage during Storm Darragh earlier this month. Drone footage revealed a ‘dolphin’ platform had fallen into the sea, exacerbating the situation and impacting the adjoining terminal used by Stena Line.

Currently, all sailings are suspended until January 15, though experts warn this date may be overly optimistic. Garrett Bridgeman, managing director of An Post, Ireland’s national postal service, said: “I don’t think January 15 looks like the date. If you look at the level of work that needs to be done and the safety checks required afterwards, February or March seems more realistic.”

Stena Line stated their priority remains resuming operations safely, while the Marine Accident Investigation Branch (MAIB) is conducting an inquiry into the incident. A spokesperson for MAIB confirmed inspectors are reviewing evidence to understand the circumstances that led to the damage.

The Welsh Government has implemented contingency plans, with additional sailings arranged from Wales and the Mersey area despite challenging weather conditions. Welsh Transport Minister Ken Skates said: “This is a challenge we have never faced before, but we’ll continue working with UK and Irish governments to support businesses and travellers.”

Increased pressure on Fishguard and Pembroke ports

Pembroke Port this week (Images: Martin Cavaney)

With Holyhead out of action, Pembrokeshire’s ports—Fishguard and Pembroke Dock—are facing increased pressure to handle additional sailings. Stena Line and Irish Ferries have already announced extra services from these ports to help ease the disruption.

Irish Ferries has confirmed it will launch a new service from Fishguard, while Pembroke Dock is also experiencing heightened activity with extra crossings scheduled. Passengers and freight operators are urged to check ferry company websites for the latest updates.

Cabinet Secretary for Transport and North Wales Ken Skates praised the efforts of ferry operators and local authorities in managing the surge in activity at Pembrokeshire’s ports. “Both Fishguard and Pembroke Dock are playing a crucial role in maintaining the flow of goods and passengers across the Irish Sea during this unprecedented disruption,” he said.

Local authorities and Transport for Wales are working to ensure traffic flows smoothly around these ports, with additional measures in place to minimise congestion and delays.

Meanwhile, the Irish Road Haulage Association (IRHA) has expressed growing frustration with the lack of clear communication from Holyhead Port authorities. IRHA President Ger Hyland said: “We need correct and true information with a definite timeline. The piecemeal updates have been unhelpful.”

Hyland highlighted the financial toll on hauliers, with some operators facing losses of up to €3,000 per vehicle weekly. He urged ferry companies to increase their efforts to ease the crisis and called on the Irish government to explore financial compensation for affected businesses.

The situation has been escalated to UK Prime Minister Keir Starmer, with calls for direct intervention to expedite repairs and alternative arrangements. Minister of State James Lawless, who met with haulage industry leaders, acknowledged the urgent need for clarity and support.

With Pembrokeshire ports now under increased strain, stakeholders are closely monitoring the situation, awaiting updates from Stena Line in mid-January.

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Business

Derelict Cilgerran house to be transformed into cafe

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PLANS by a village shop owner to convert a house “in a state of disrepair” to a café to “improve the variety of community facilities” locally have been given the go-ahead.

Mrs Morris, through agent Harries Planning Design Management, sought permission from Pembrokeshire County Council to convert The Old Post House, High Street, Cilgerran, currently a four-bed dwelling, to a ground floor café, along with a first-floor flat.

The application received five letters of support, saying it would provide local jobs, support the community, promote Welsh and local food, and provide a local community hub, with three letters of objection, raising concerns about parking and traffic, and potential odours from the premises.

A supporting statement, through the agent, said: “The proposed site is currently a dwellinghouse, in current need of modernisations and renovations throughout. The site is under the same ownership as the neighbouring village stores Siop Y Pentre,” saying the proposal “can be read as an extension to the existing Siop Y Pentre”.

“Siop Y Pentre is a thriving local community village shop which acts as a village hub. The shop provides local residents with day-to-day necessities, with a focus on local, sustainable and minimal waste products,” the statement says, adding the dwelling it seeks to convert “is in disrepair and in need of internal works to make suitable for modern living”.

It went on to say: “The proposed café seeks to retain its focus on local and seasonal produce with minimal waste and would provide a welcomed opportunity for socialising, especially during the daytime. The café will also seek to employ local staff retaining a community feel throughout. As such, the principle of the café adjacent to the existing village store is considered acceptable. The site seeks to encourage a sustainable community, with development of an appropriate scale and nature.

“Further to this, the location of the development is within the settlement boundary and seeks to fulfil a need for day-time socialising environments currently lacking within Cilgerran.”

The application was conditionally approved by county planners.

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Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

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PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

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