Independent petrol stations begin to close instead of charging customers £2 a litre as supermarkets warn supply is ‘tight’ amidst Iran war

Smaller petrol stations are being forced to close their pumps rather than charge £2 per liter as supermarkets warn supplies are ‘tight’ amid war in Iran.

Consumers and businesses are feeling the pinch of rising fuel prices as the conflict between Tehran and the United States and Israel enters its second month on Saturday.

Queues continue to form at petrol stations across the UK due to short-term supply problems in some areas since Iran closed the Strait of Hormuz, through which 20 percent of the world’s oil supply passes each year.

On Saturday, fighting showed no signs of abating as Yemen’s Houthi rebels entered the war with a ballistic missile attack on Israel.

The latest development raises concerns that prices could rise further if the Houthis continue their previous attacks on shipping in the Red Sea.

This week some smaller petrol station owners closed their shops rather than be forced to charge customers up to £2 per liter for fuel. In leading supermarkets, some pumps were closed due to depletion of stocks.

Yard bosses say they have been accused by the Government of ‘capitalising’ on the crisis – which the industry strongly denies – and are facing abuse from angry customers.

Smaller forecourts are often the first to be affected by rising prices, with many opting to close rather than pass on astronomical price increases to customers.

Queues formed at CostCo’s branch in Gateshead on Friday as customers raced to take advantage of cheaper fuel prices

Small gas station owners like Mollie Ellis (pictured) have closed their pumps due to price rise

Today, average gasoline prices reached 150.11 pence per liter, while diesel prices increased again to 177.68 pence.

Mollie Ellis, who runs family business Youlgrave Garage in the Derbyshire Dales, told how she switched off the pumps two weeks ago after refusing to pass on higher prices to customers.

Ms Ellis said: Times He was facing charging customers 180p per liter of petrol and 200p per liter of diesel, something he was not prepared to do.

It stopped selling fuel on March 13 because it did not want to face allegations of profiteering from angry customers or buy fuel at a loss that it could not sell.

‘We cannot afford to take this blow. “We’re a one-mechanic garage,” he said. ‘I don’t want to be at a point where I’m seen to be ripping off customers and people think we’re profiteering because a lot of my colleagues in the industry take a lot of abuse.’

Beth Ballard, who runs a forecourt at H Ballard & Son car dealership in Welshpool, stopped selling petrol on March 19.

The final straw for him was when he was quoted a wholesale price of over 150p per litre, excluding any tax or running costs, while his competitors’ prices were below 140p.

He said: ‘We normally get praised for being the cheapest in Welshpool so this was just a big no no. We won’t do that.’

Independent fuel stations are more likely to have fuel purchasing agreements that allow them to buy based on the previous week’s or even today’s prices than competitors such as large supermarkets.

This means they are more vulnerable to market fluctuations and are the first to pass on large price increases to customers.

Yesterday Asda chief executive Allan Leighton warned supplies were ‘tight’ due to ongoing conflict.

He said: ‘Supply is tight and we are all working hard for it. The issue is temporary and some may experience issues while they wait for delivery and we can expect this to continue.’

The Daily Mail visited several petrol stations in the north of England this week; Here, drivers reacted to the Government due to increasing fuel costs.

Beth Ballard, who runs a forecourt at H Ballard & Son car dealership and petrol pumps (pictured) in Welshpool, stopped selling petrol on March 19.

Petrol was selling for 137.9 and diesel for 160.9 at CostCo in Gateshead – the cheapest price in the area

Retired electrician Michael Hall, 73, of Kingston Park, Newcastle, fills up his car in Gateshead on Friday

At CostCo in Gateshead, petrol was selling for 137.9 and diesel for 160.9 (the cheapest price in the area).

Queues lengthened in the forecourt as desperate motorists scrambled to fill their cars before making the trek further.

Support worker Joanne Bolam, 49, from Kingston Park, Newcastle, said: ‘The government must cut costs.

‘I fill my tank once a month but the price is absolutely ridiculous. I usually go to Tesco in Kingston Park but they were out of stock so I came here.

‘The government needs to act because there will be a knock-on effect.’

Retired oil and gas engineer David Allen, 71, of Lemington, Newcastle, said: ‘The Government needs to make up its mind and do something about this.

‘I don’t think reducing fuel duty is the solution. When it comes down to it, I don’t think it will make much of a difference. It’s the same when they lower the tax on beer. You really don’t notice it at all.

‘The price of petrol varies wildly from petrol station to petrol station. Joining CostCo just for membership makes more of a difference than dropping a few bucks on fuel tax.

‘We are a two-car family. My wife uses it for work during the week, and we always try to go on trips somewhere on the weekends.

‘Increasing the price of petrol will not only affect travel, it will affect everything that travels by road. If you want to take a taxi somewhere, it will also be more expensive.’

David’s wife Bev Holmes, a 61-year-old executive worker from Lemington, Newcastle, added: ‘I commute around 45 miles a day.

‘I have already said that I will work from home one day a week to save money. I’m lucky to have that option, not everyone has that option.

While David Holmes, 71, and his wife Bev, 61, were fueling up their car, Bev decided to start working from home once a week to save on fuel.

Support worker Joanne Bolam, 49, of Kingston Park, Newcastle, said the Government ‘must take action’ to protect families

‘But more people working from home will have a negative impact on the economy. ‘It’s going to affect a lot of things.’

Michael Hall is a 73-year-old retired electrician from Kingston Park, Newcastle.

He said: ‘I think the Government should help us. If they don’t help businesses, they could be forced to close.

‘When the price of gasoline increases, everything increases. The state will earn more money from VAT. They’re not going to drop this, but they need to.

‘There must be measures to do this in a crisis.’

HGV driver Chris Walton, 34, of Throckley, Newcastle, said: ‘Everything is very expensive as is.

‘This is just one more thing on top of the pile. It always hits the people who work the hardest. The problem is never politicians.

‘The government should reduce fuel tax’ People are struggling in many ways because they cannot afford living expenses.

‘Due to my job, I have to travel approximately 40 kilometers a day. It’s hard to estimate yet how much it will cost me. Luckily I don’t have to pay for HGV fuel but it could affect my business.

‘Everything will be much more expensive.’

At Esso Garage PNG Fuel & Foods in nearby Blaydon, petrol was 154.9p per liter and diesel was 183.9p.

Rachael Grant is a 40-year-old florist who runs Jasmine and Pear in Gateshead.

He said: ‘This is a huge expense, especially for someone like me running a small business. If there is anything the government can do it would be a big help.

‘This gas station is expensive and I usually shop around but I’m in a rush to pick up the kids from school.

‘I travel to wedding venues all over Northumberland so I do a lot of mileage.

‘What should I do if I can’t make money from wedding flowers?

‘The government will make more money from VAT and I don’t think that should happen.

‘While wars continue in the world, temporary measures need to be taken to reduce the damage in the short term.’

It is not just fuel that is subject to price increases as a result of conflict. Fertilizer costs are also increasing due to supply chain disruptions; This could increase costs and disrupt food distribution around the world.

Fertilizer stocks are accumulating in the Middle East but cannot be exported efficiently due to the closure of the Strait of Hormuz. Generally, almost a third of global fertilizer passes through the strait each year.

Even countries outside the Middle East that produce their own stocks are experiencing difficulties because they need natural gas. The Middle East is facing price increases similar to oil due to being the production center of the region.

In countries such as Slovakia, India and Algeria, fertilizer factories had to stop or slow down production due to increasing natural gas prices.

Experts warned that it was ‘inevitable’ for food prices to rise as a result of the crisis.