Beat that: unleaded petrol for just £109.7 per litre

Reddich petrol station owner says supermarkets overcharge

Updated: 
Female hand refilling the car with fuel

A Redditch petrol station has cut the price of fuel to just £109.7 per litre of unleaded, saying that supermarkets are overcharging their customers.

Velautham Sarveswaran, who runs the Harvest petrol station, has also cut the price of diesel to £1.16 a litre, and says he hopes to make further reductions next week.

As a result, motorists are queueing to get on to the forecourt, and pumps have run dry three times.

Mr Sarveswaran says that, thanks to the recent fall in the price of oil, he's still making a profit of around 3.5p a litre.

"It's a great feeling, because we are passing on the benefits of the price cuts to the customers. They are praising us and they are happy," he tells the Birmingham Mail."The supermarkets should have done it," he added.

Over the last six months, the cost of crude oil has fallen by 40%. But supermarkets haven't cut their petrol prices accordingly. According to the latest figures from the AA, average prices have fallen by 6.6p to £116.32 a litre for unleaded, and by 5.27p a litre to £122.16 for diesel over the last month.

Asda, Sainsbury's, Morrisons and Tesco have all reduced their petrol by 2p a litre and their diesel by 1p a litre. But only Asda is close to matching Mr Sarveswaran's prices, at £110.7 and £117.7 respectively.

Customer Alan Nicks told the Daily Mail he had driven six miles from his home in Bromsgrove to fill up his Ford Focus at the Harvest petrol station this morning.

"My cousin told me about the price and I didn't believe it when I was first told. I had to come and see it for myself," he said.

"It was worth a bit of drive out and a 30-minute wait queuing. It's an absolute bargain."

But was it worth it? Entertainingly, perhaps, the Green Flag recovery firm has calculated just how far it's reasonable to drive in search of cheaper petrol - and it looks as if Mr Nicks is right.

"Let's assume there's a garage selling petrol at £1.10 a litre. But the garage you normally use prices it at £1.16. At your regular filling station, a £45 fill up would see you getting 38.8 litres of petrol," they write.

"With the cheap fuel prices you would get 40.9 litres. That's a difference of just 0.46 of a gallon. In a 45mpg car, that's 20.7 miles you could drive before going out of your way for the cheaper fuel actually starts to cost you."

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