Why is Rhuthun so Expensive?

A recent commenter asked why Rhuthun's petrol was so expensive compared to other places. Well, it's interesting that the gap is narrowing.

One answer to the commenter's question is the general uncompetitiveness of rural petrol stations, something that's resulted in the closure of 600 forecourts per annum since 2002. There are apparently fewer petrol retail points than at any time since 1912, according to the Petrol Sellers Association. Many of the closures are in rural areas. They have small overall sales volumes. Most are independent operators. They carry higher costs as they buy via wholesalers. It's believed that small forecourts pay more in wholesale prices than supermarkets sell direct to motorists. Some supermarkets may sell at cost, as a loss leader. If retailers make just the reported 2p to 3p per litre, it's therefore easy to see why supermarkets are 2p or 3p per litre cheaper. The supermarket market share has marched from 11 to 38 per cent, from 1992 to 2006.

It was something of a shock when Llangollen's last of two petrol stations closed. This left a petrol gap in the Dee Valley. Rhuthun continues to support two petrol stations but only 25 years ago, this was four (Slater's and Farmer's Garage, currently B & M). Over the same period, Rhuthun has lost petrol pumps in the villages of Pentre Llanrhaeadr, Llanbedr DC, Llanfair DC, Clawddnewydd and no doubt others besides.

Higher prices in Rhuthun have always been a reality. We don't like it but at least there appear reasons for it. Taking on eight gallons of fuel in Rhuthun at the moment results in about an extra £1.45 expenditure—on a £43.58 spend on unleaded. £1.45's not even a pint of beer.

Is this a small price to pay to keep our petrol? Without a filling station we'd be in something of a black gold black spot.