Clinton Rogers: What is behind Somerset fuel price gaps?

They seem to have developed a mind of their own.

I know there is a war thousands of miles away (thank you Donald!) and I know that has to have an impact on crude oil prices.

But why the weekly, sometimes daily, fluctuations in forecourt pricing?

And why can one town (Weston-super-Mare recently) be charging close to £1.90 for diesel when, at the same time, Taunton forecourts were closer to £1.70?

In one week, I saw pump prices jump from £1.78 to £1.89 on the same forecourt.

The more research I do on the subject, the more complicated it seems to get.

Financial experts tell me you don't have to lose a tanker-load of oil before the price rises.

Traders only have to become worried that supplies might be disrupted.

The Strait of Hormuz is the obvious worry.

It is a vital route for oil tankers, so the prospect of ships being delayed, diverted or attacked immediately adds what is known as a 'risk premium' to the price.

And I'm told it isn't just the oil itself.

Shipping insurance becomes more expensive.

Refineries can face difficulties getting supplies.

Traders start buying oil for future delivery because they fear it will become scarcer.

But it is frightening how quickly the financial markets react, and we pay the price.

So, it seems a war in Iran (which shows no sign of ending) really can affect the wholesale price from one week to the next — even if the petrol currently sitting in a Somerset filling station was bought before the latest missile was fired.

Still with me?

But for all the reasons given above, I'm still confused by what I see as the great 'Somerset petrol-price lottery'.

Drastically varying prices from one station to another.

One independent retailer explained to me that he has to charge the 'going rate' for his fuel if his costs rise.

Supermarkets, on the other hand, can afford to sell fuel at a loss, as a means of attracting customers to their stores.

Makes sense, I suppose.

But now explain motorway fuel prices to me.

I saw £2.12 last week.

Surely that is pure exploitation?

I have heard the arguments that their costs are higher, for buildings, for land and for opening 24/7.

But I'm not convinced.

The fuel station close to me opens round the clock, and their prices are significantly lower.

To me it's simple — they have a clientele that has no choice.

It's the same reason airlines charge more for flights in school holidays.

They do, because they can.

But I still detest them for it.