MOTORISTS are being ripped-off at the pumps with many petrol stations taking advantage of the recent rise in oil prices, the Consumer Association said yesterday.

There was a difference of 20 cent in the price of a litre of unleaded petrol in some garages yesterday, with one Shell garage in Limerick charging motorists ?1.09. Another Shell outlet in Killarney was charging 89.9c.

The discrepancy prompted the head of the consumers' lobby, Dermott Jewell, to urge garages to increase market share by cutting the price to their valued customers.

He appealed to T?naiste Mary Harney to meet the oil industry here, or at least discuss with the garage retailers the need to rein in rising prices.

Government tax accounts for 61.5 cent on each litre of petrol sold at the pumps.

From an average of 90c a month ago, the price at stations has been creeping up in recent days.

The price of crude oil shot to an all-time high in New York yesterday, hitting $41.50 a barrel after official trading opened.

Shattering the previous record of $41.15 set in October 1990, the latest surge has been triggered by fears of terrorist attacks in Iraq and Saudi Arabia, two of the biggest oil-producing countries.

Mr Jewell, chief executive of the Consumers' Association of Ireland, accused some filling stations of taking advantage of the situation.

"If certain of the garages really wanted to show how much they appreciated their customers in a situation that is not really competitive they could gain a lot of market share if they reduced their prices."

Irish consumers remembered when somebody gave them a break and garages now had a great opportunity to develop their business.

Mr Jewell agreed with Labour spokeswoman Kathleen Lynch, who said the increases in petrol prices were not justified.

Petrol companies bought their oil months in advance and were now attempting to sell it at much higher prices.

"They did not purchase that petrol at anything near the price they're selling at now and it really is taking the consumer for an absolute fool. They are making a bad situation worse for consumers, who are being taken advantage of," said Mr Jewell.

But he felt there was nothing consumers could do as "shopping around" for the best price was not really an option.

IrishExaminer.com