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emb123
28-May-08, 16:29
From The Times

May 23, 2008
Tourists stay away from the Highlands as diesel prices soar to £6 a gallon

Quiet Bank Holiday is blamed on the cost of fuel as rural petrol stations are among the most expensive

David Lister, Scotland Correspondent

http://www.timesonline.co.uk/tol/news/article3994727.ece

The future looks bleak from behind the counter at the Sutherland Sporting Company in Lairg.
Amid the midge nets, the deerstalker hats and the tweed jackets in his shop, Alasdair Ross has a grim message for the tourism industry in rural Britain.
“There's no question, this year will be the worst we've ever had and it's because of the fuel,” he says. “The tourists have just disappeared north of Inverness.”

This weekend - the second Bank Holiday in May - is meant to be the time of year when the tourist industry in rural parts of Britain licks its lips at the start of what it hopes is going to be a long and profitable summer season.

But as fuel prices continue their relentless rise, the signs are not good. “People just haven't got the money in their pockets any more, and for many the fuel is the final straw,” says Mr Ross, 62.
“We're lucky because our customers are mainly anglers and stalkers, but we need the tourists too.”

In Lairg, just over an hour from Inverness by car and in one of the less-visited parts of the Highlands, there are precious few tourists around and the restaurants and souvenir shops are all but deserted.

At Dunrobin Castle, near Brora, the biggest tourist attraction in the region, the car park is barely half full.
According to figures obtained by The Times, Britain's spiralling fuel prices are affecting Lairg and the surrounding area more than any other part of Britain.

In an area where motorists have little or no choice, this far-flung region has become the most expensive part of the country in which to fill up your car, surpassing overall even the Western Isles and Shetland.

Although a petrol station in London - the Chelsea Cloisters - invariably tops the list of Britain's 9,000-plus filling stations as the most expensive, this is little more than an anomaly. According to the figures, three in the Lairg area are among the Top 20 most expensive and a fourth is not far behind.

There are just a handful of petrol stations within a 20-mile radius of Lairg, but virtually all are now selling diesel at above 131.9p a litre - or £6 a gallon. Many have seen prices rise by as much as 30 per cent already this year.

“It's killing us,” says Alistair Nicolson, 58, at the Pittentrail Garage in Rogart, where the price of diesel is currently 132.9p a litre - and is likely to rise when a new delivery arrives in the next few days. He says that he will have no option but to stop doing business unless prices start to come down.
“People are complaining bitterly, but in this part of the world you are stuck without a car. It's hitting the visitors as well,” he says. Some 366 petrol stations, many in rural parts of Scotland and Wales, have already broken through the £6 a gallon (131.9p a litre) barrier for diesel. Of these, some 34 are in the far-flung Scottish counties of Caithness, Sutherland, Invernesshire and Ross-shire - or 53 per cent of all filling stations in the region.

A spokeswoman for petrolprices.com, the fuel price comparison website, said yesterday: “Stations in rural areas, or those with very little competition, are generally more expensive - they know that drivers can't go elsewhere and so can get away with charging a premium. Lairg appears to be one of those areas, but this pattern is repeated to a lesser extent across the country.”

As politicians called for concessions on fuel duty for those in remote areas, Hugh Macquarry, owner of the Central Filling Station at Kyle of Lochalsh, in the western Highlands, where diesel was selling at 133.9p a litre, said that prices had gone up 10p in the last month alone.
“The Government has to do something,” he said. “There has to be a rural rebate for remote areas like here.”




Have Your say:

At a time when prices oil prices are going through the roof Mr Brown continues to recover a windfall in additional VAT.

Together with the proposed 2p a litre and other increased car taxes this government will tax us to a standstill.

The economy needs help but MP's jobs are secure!
wullie, Luss, Scotland

i,ve just filled up in Hirwaun south wales and paid £1.39.9 a litre.Is this the most expensive fuel in Britain?
Julian Devereux, merthyr tydfil, uk

You can spend good holidays in USA... Gasoline is only 4,5 $ per gallon for now. against 12 $ in UK ... Welcome to Florida !
Jutharat, Bangkok, Thailand

bekisman
28-May-08, 17:46
EMB123: “Stations in rural areas, or those with very little competition, are generally more expensive - they know that drivers can't go elsewhere and so can get away with charging a premium. Lairg appears to be one of those areas, but this pattern is repeated to a lesser extent across the country.”

But then again Brown and his Darling can quite easily allow Derogation (varying Tax) on fuel in remote areas - the sickening thing is, the UK Government has already signed EU documents permitting other parts of the EU to have this help, but us Brits? nah, he doesn't give a toss! (And yet it's common knowledge the extra revenue he's had in in the last few weeks is more than enough to lower the excise duty for all of us..)


http://news.scotsman.com/latest-scottish-news/MSP-calls-for-fuel-price.4125990.jp (http://news.scotsman.com/latest-scottish-news/MSP-calls-for-fuel-price.4125990.jp)

Tristan
28-May-08, 18:09
I think with the government's tax policy it is not only going to keep tourists out of the Highlands but also out of Britain. So not only higher travel, haulage and food costs for us but a huge lack or tourist revenue as well.
I do find it amusing that the government is going around asking oil companies to up production to help reduce the cost when the single biggest cost is them.[evil]

bekisman
28-May-08, 18:40
*At least Saudi Arabia has started to increase pumping (five hours ago) isn't Mr Brown marvellous!
"oil exporter Saudi Arabia has boosted supply to help meet the world's need for fuel and may further increase output later if needed, a senior Gulf OPEC source said on Wednesday. OPEC's 13 members, especially core Gulf producers, are taking their output cues from global oil demand rather than sticking to production targets, said the source familiar with Saudi thinking."

**And the price is dropping too.(8 hours ago). well I never

* http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD90UI1GO1 (http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD90UI1GO1)


** http://www.guardian.co.uk/business/feedarticle/7545166 (http://www.guardian.co.uk/business/feedarticle/7545166)

The Angel Of Death
29-May-08, 09:15
*At least Saudi Arabia has started to increase pumping (five hours ago) isn't Mr Brown marvellous!
"oil exporter Saudi Arabia has boosted supply to help meet the world's need for fuel and may further increase output later if needed, a senior Gulf OPEC source said on Wednesday. OPEC's 13 members, especially core Gulf producers, are taking their output cues from global oil demand rather than sticking to production targets, said the source familiar with Saudi thinking."

**And the price is dropping too.(8 hours ago). well I never

* http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD90UI1GO1 (http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD90UI1GO1)


** http://www.guardian.co.uk/business/feedarticle/7545166 (http://www.guardian.co.uk/business/feedarticle/7545166)

All fair and good but how long / if at all will it be before the price starts to drop its funny how on one hand were told a decrease can take weeks but an increase can go straight onto the batch in the pumps straight away

Funny that isn't it

TBH
29-May-08, 10:01
“Stations in rural areas, or those with very little competition, are generally more expensive - they know that drivers can't go elsewhere and so can get away with charging a premium. Lairg appears to be one of those areas, but this pattern is repeated to a lesser extent across the country.”Why would stations in rural areas increase their prices because they have no competition locally. Why would they wish to ruin their own tourist trade?

bekisman
29-May-08, 11:32
TBH: "Why would stations in rural areas increase their prices because they have no competition locally. Why would they wish to ruin their own tourist trade?" (Quote Petrolprices.com)

The 'Tourist Season" is from May to September - the remaining seven months it's mostly locals, so they try and make as much profit as possible.
It's not only allegedly the rural stations; "In February 2004, the average price of unleaded petrol was 76.88p per litre... while the most expensive was Thurso in Caithness at an average price of 85.90p." *1.. Why was that? Greed?

Eventually all in Thurso and Wick will see the writing on the wall, Elmtree has now gone.. Yesterday I was in Wick. Tesco was 117.9 unleaded, we drove past Dunnets @ 116.9 so filled up there. Whilst in the shop paying another motorist mentioned they were a penny cheaper, the girl serving retorted 'they've only just gone up then - I'd better contact the boss and get ours up too'.. Does that mean that Dunnets must have just had a brand new delivery, or making it whilst they can?



*1 http://www.thisismoney.co.uk/news/article.html?in_article_id=323232&in_page_id=2 (http://www.thisismoney.co.uk/news/article.html?in_article_id=323232&in_page_id=2)

TBH
29-May-08, 12:53
TBH: "Why would stations in rural areas increase their prices because they have no competition locally. Why would they wish to ruin their own tourist trade?" (Quote Petrolprices.com)

The 'Tourist Season" is from May to September - the remaining seven months it's mostly locals, so they try and make as much profit as possible.
It's not only allegedly the rural stations; "In February 2004, the average price of unleaded petrol was 76.88p per litre... while the most expensive was Thurso in Caithness at an average price of 85.90p." *1.. Why was that? Greed?

Eventually all in Thurso and Wick will see the writing on the wall, Elmtree has now gone.. Yesterday I was in Wick. Tesco was 117.9 unleaded, we drove past Dunnets @ 116.9 so filled up there. Whilst in the shop paying another motorist mentioned they were a penny cheaper, the girl serving retorted 'they've only just gone up then - I'd better contact the boss and get ours up too'.. Does that mean that Dunnets must have just had a brand new delivery, or making it whilst they can?



*1 http://www.thisismoney.co.uk/news/article.html?in_article_id=323232&in_page_id=2 (http://www.thisismoney.co.uk/news/article.html?in_article_id=323232&in_page_id=2)I take your point about the length of the tourist season but they just seem to be cutting their noses off to spite their faces as is dunnets, I mean why would they keep their petrol price level with tesco? I would have thought that having a lower price would mean more customers.

bekisman
29-May-08, 14:08
Quite agree TBH, does not make business sense - it's beyond me!

emb123
29-May-08, 23:28
Mind you, bearing in mind the high prices at the pumps in rural locations, it's still possible to fill up before you get to where the prices start to get (even more) silly - even if you know beforehand that the petrol is going to be expensive further north.

If I were planning a trip from England or the lowlands to the Highlands for a holiday I wouldn't be put off by the price of fuel for a tank-fill in the highlands because it would be a drop in the ocean compared to the potential total cost of the holiday.

The *total* fuel bill on the other hand would be something I would look at.

Caithness & Sutherland rely quite heavily on tourism during the summer months to help local businesses survive. Local businesses are finding it tough enough coping with their own rising fuel costs (and heating costs if they provide accomodation which they need to keep warm for customers) and increasing costs of everything else due to rising fuel cost of delivering to this area. If such businesses don't even get the usual annual influx of tourist trade because it's too expensive to get here then boy, are we in trouble.

...

btw, Dunnets' behaviour does seem a bit odd tho' doesn't it. ?! Who can understand the thinking of these business men ???

Bill Fernie
30-May-08, 00:55
Driving a long way such as England to Highland or any European starting point could be made cheaper by following these tips from the SEPa web site -

Limit the amount of time your car engine is running (idling) when you’re not driving – turn it off if you stop for more than 10 seconds (except in traffic). Idling also prevents the catalytic convertor from working properly.

Avoid rapid acceleration and heavy braking - accelerate smoothly, even in a traffic jam. Smoother driving can use 30% less fuel. Also, obey the speed limit. Doing 50mph can use 25% less fuel than 70mph.

Service your car regularly (usually every 12 months or 10,000 miles).

Make sure your tyres are properly inflated. (For every 6psi a tyre is under-inflated, fuel consumption can rise by 1%)

Make sure your garage throws in an emissions test with the service. This can save you money as well as helping to prevent breakdowns by identifying problems with the engine.

Wide-open windows, roof racks, heavy clutter in the boot and air conditioning can all add to your fuel bill.

On cold days, limit warm-up idling to 30 seconds or less (the best way to warm up your vehicle is to drive it).

Choose a car with a three-way catalytic converter - it will reduce nitrogen oxide and hydrocarbon emissions by 90%.

see http://www.sepa.org.uk/green/guidance.htm for more going green tips on other topics.

Bill Fernie
30-May-08, 00:59
In the last few days I have heard various opposite views on tourists coming to the Highlands or not. The US dollar is low and therefor it is more expensive to come to the Uk. On the other hand the Euro is higher compared to the pound making the UK cheaper than it hasbeen for a while. So even if fuel prices are up the Euro may counteract that for folk coming across the channel by ferry and car.

Camping apparently is gaining as folk try to have a cheaper holiday. If more are going for the outdoor family holiday then perhaps the great outdoor spaces of Highland will offer many attractions for folk more used to heading for the Spanish resorts.

YummyMummy
30-May-08, 10:00
In the last few days I have heard various opposite views on tourists coming to the Highlands or not. The US dollar is low and therefor it is more expensive to come to the Uk. On the other hand the Euro is higher compared to the pound making the UK cheaper than it hasbeen for a while. So even if fuel prices are up the Euro may counteract that for folk coming across the channel by ferry and car.

I would agree with this. I've just started up a holiday property in Lybster and my first guests are a French family (from Paris) and my second, a couple from Germany (Munich), so the exchange rate is evidently attractive for our neighbours across the water.

Lumberjack
30-May-08, 21:30
I would have to agree with emb123 on this quote.

"If I were planning a trip from England or the lowlands to the Highlands for a holiday I wouldn't be put off by the price of fuel for a tank-fill in the highlands because it would be a drop in the ocean compared to the potential total cost of the holiday."

I used to work in a garage and was continually harassed by locals and tourists alike about the difference in price between Caithness and the South.
Now, I am not trying to butter up my ex-boss, but he priced the fuel in accordance with Shell guidelines. Of course, customers would not believe this, so once after a heavy fuel duty increase from the Chancellor I kept an invoice from Shell to show these people that the profit margin he had was quite small. The response I had was amazing, with customers apologising left and right.

Apparently the cost of running a car is a lot lower in Caithness than in most of the UK. Insurance is cheaper and we have no parking or congestion charges either.

So why are we paying more for our fuel? I honestly do not know, but I can confidently say that retailers pay more for it up here than garages down South can sell it.