Why petrol prices are surging – and why small stations can't absorb the cost

If you've noticed petrol prices hitting an 18-month high at the pumps, you're not imagining it. But here's something that might surprise you: the petrol station owner isn't necessarily pocketing the difference.

**Why prices are jumping so fast**

The surge follows the recent escalation of conflict in the Middle East, which has driven oil prices up sharply. Diesel has been hit particularly hard, with the biggest price increases in over two years.

The problem is how quickly these global price movements filter through to your local forecourt – and it varies dramatically depending on the size of the retailer.

**The difference between big and small operators**

Large supermarkets and major fuel retailers buy oil in bulk and often purchase weeks in advance. This means rising wholesale costs reach their pumps more gradually, and they can negotiate better rates because of the volumes they're buying.

Small independent petrol stations, however, operate on what's called "daily spot prices". They pay the live market rate on the day their tanker arrives – sometimes without knowing the price until *after* the fuel has been delivered. For stations with small storage capacity (often just over a day's worth), this is brutal. One tanker load can cost £2,000 more than the previous day.

**The human cost**

Staff at smaller stations are bearing the brunt of customer frustration. While the Petrol Retailers Association argues there's no profiteering happening – and some members may even be making losses on diesel – frustrated drivers are venting their anger at forecourt workers. Fuel theft has also risen.

The government has warned it's watching for price gouging, but the Competition and Markets Authority is the body actually monitoring the sector. A new fuel finder app (covering over 90% of retailers) should help create more transparency and competition.

**What you can do**

Use the fuel finder app to compare prices in your area. While you can't control global oil prices, you can shop around. And remember: your local petrol station owner probably isn't the villain in this story – they're caught between global markets and angry customers, just like you're caught between your budget and rising costs.

Source: We're not profiteering on fuel. But my staff still face abuse