Top 10 cheapest UK petrol stations

With petrol prices at an all time high we’ve gathered a list of the 10 UK petrol stations with the cheapest petrol. Those of you who live in Bishop Auckland, County Durham are in for a nice surprise whereas those outside these areas will be able to get an idea of how much more you are paying compared to the cheapest available.

1. Sainsburys, Bishop Auckland

Tindale Crescent, Bishop Auckland, County Durham, DL14 9SX – 127.9p

2. Tesco, Bishop Auckland

Maud Terrace St Helens Trading Estate, Bishop Auckland, County Durham, DL14 9AX – 128.9p

3. Oakley Service Station

Staindrop Road West Auckland, Bishop Auckland, County Durham, DL14 9PB – 130.9p

4. Morrisons Bishop Auckland

Newgate Park Centre, Bishop Auckland, County Durham, DL14 7TN – 130.9p

5. Shildon Service Station

Redworth Road Shildon, County Durham, DL4 2JT – 130.9p

6. Etherley Moor Garage

B6282 Etherley Moor, Bishop Auckland, County Durham, DL14 0JU – 130.9p

7. Hazlemere Cross Roads Otr Service Station

Amersham Road, Hazlemere, High Wycombe, Buckinghamshire, HP15 7HL – 131.9p

8. Sainsburys Dewsbury

Railway Street, Dewsbury, West Yorkshire, WF12 8EB – 131.9p

9. Coppice Car Sales Ltd

Lichfield Street, Fazeley Tamworth, Staffordshire, B78 3QA – 131.9p

10. Tcs Cockton Hill

Cockton Hill Road, Bishop Auckland, County Durham, DL14 6AH – 131.9p

(Cheapest petrol station – 05/08/2011)

If we compare todays cheapest petrol prices with that of earlier last year (20/04/2010) there is a big difference in the cheapest price of 116.9p then and the cheapest price now of 127.9p.

So why are some petrol stations cheaper than others.

After seeing our list you are probably wondering how this can be. How can the exact same product vary so dramatically in price?

The first thing to consider is how market forces such as competition and demand can impact the price of fuel at petrol stations near you. For example areas that are densely populated with petrol stations will have to offer competitive prices in order to compete with other stations. The opposite is true for petrol stations in rural areas who may be consistently maintaining higher prices as their regular customers have no other alternative choice of petrol station.

The times at which petrol stations buy their fuel will also have an influence on the price you pay at the pumps. So if a station buys at the right time, when the price of a barrel of oil is lower, then they can sell it for cheaper than the station who bought it a day earlier at a higher price.