Petrol Price in new Tesco in Cashel, Tipperary

We received this e-mail from a ValueIreland.com reader yesterday:

I live in Cashel Co.Tipperary. Tesco opened a new filling station in Cashel and charge 96.9c per litre for petrol. 14 miles away in Clonmel, Tesco charge 91.9c per litre. To me this is very unfair to Tesco customers in Cashel.

This was my original response:

Unfortunately there’s not a whole lot that can be done in situations like this. We’ve received numerous e-mails about petrol prices in the past – many asking about a “petrol regulator”. There isn’t any such thing, so petrol stations can charge what they want.

I suppose what Tesco are hoping to cash in on is that people will assume (given much press coverage where Tesco is referenced as having cheap petrol) that whatever they’re charging in Cashel will be cheap. As you’ve found, this is obviously not the case.

Do you know what the petrol prices are in surrounding areas in Cashel – is Tesco about the same, or as is normally their ploy to be 1c cheaper than the average? I’m guessing the average price of petrol in Clonmel is about 92.9c on that basis as well.

As it turns out, after doing some quick checking on Pumps.ie, this was exactly the case with regards to the price of petrol in both Cashel and Clonmel.

Tesco are obviously depending on the fact that most people in Cashel probably wouldn’t even know the price of petrol in Clonmel for a start.

The question is though – if you were to shop around for petrol, would you drive the 14 miles from Cashel to Clonmel to save 5c per litre on a price of petrol?

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4 Responses to Petrol Price in new Tesco in Cashel, Tipperary

  1. Colm January 6, 2009 at 15:45 #

    Clonmel is different to Cashel and most other towns. Tesco in Cashel is probably the only station offering “cheap” petrol. In Clonmel there is a price war between Tesco, Applegreen and Vivo. They all have newish stations and there seems to be a constant battle to undercut each other. I live in the town and have seen the price at one station fall twice in the same day (morning and evening) in response to a cut by another in the afternoon.

    Competition should force the price down as it does in Clonmel. The question people living in other towns should be asking is why “competition” isn’t working in their town. What is different about the type of “competition” in towns dominated by the older established, often family run, stations and the competition in towns like Clonmel where three stations are knocking lumps out of each other and the consumer is reaping the benefits.

  2. valueireland January 7, 2009 at 00:09 #

    Colm – thanks for the comment. As you say, with increasing competition now in place in Cashel, you should see a drop in prices eventually.

    Though, as was found out following in investigation in a town in Mayo a number of years ago, just because all “competing” petrol stations all have exactly the same price on petrol, it doesn’t necessarily mean that they’re operating a cartel.

    Go figure!

  3. Gerard Connaughton January 7, 2009 at 23:59 #

    Looks like your comments have had some effect – Diesel & Petrol are both down to 92.9 in Tesco in Cashel this evening! Although both are down to 91.9 in Tesco Clonmel. Best advise, is register with http://www.pumps.ie and use the site to guide you to the best fuel deals.

  4. valueireland January 8, 2009 at 00:21 #

    Nice one Gerard – good news. Would like to think that we had an impact, but maybe and thankfully, it’s just competition working properly.

    We definitely endorse pumps.ie and would recommend that everyone make use of it since it’s the quality of the data that people submit that makes the website its most useful.

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