Although petrol prices are falling, according to the government’s Competition and Markets Authority, this is not being passed on to customers.
And prices are not only high at the pump. Research from Money Mail shows that customers who shop at highway gas stations pay an astonishing 300 percent markup for basic supplies and snacks.
I visit the Birchanger Green motorway service station just off the M11, the last – or first – chance to take a break on the journey to or from London, 40 miles south.
I compare prices to supermarkets just a mile away in Bishop’s Stortford, Hertfordshire, to see how expensive goods are.
On an early June lunchtime, the parking lot is packed with vehicles, while the Welcome Break shopping area is bustling with drivers and their passengers stocking up on fuel and refreshments for the journey ahead.
Price is not right: reporter Toby with some of his messages from the Birchanger Green motorway service station just off the M11
Gas pumps feeding the mark-up
Before I even get to overpriced groceries, I’m dealing with outrageous gas prices. I drive in a winding trail of vehicles queuing for fuel.
The sign indicates that unleaded petrol is 168.9p litres, while diesel is 179.9p. In old money, this means petrol costs £7.68 per gallon, while diesel costs £8.18. If you fill up a typical 60 liter fuel tank it will cost £101.34 and £107.94 respectively.
But at the local Tesco supermarket a mile away the fuel is 145.9 p.litre for petrol and 148.9 p. for diesel. So filling up the car will cost £87.54 and £89.34 respectively.
If you fill up a petrol car at a petrol station once a week for a year, you will spend an extra £717.60. The RAC says highway fuel is typically 20 pence more expensive than at other petrol stations.
Captured customers are exploited
Families who stop at gas stations for fuel and refreshments are a captive audience and all too easy to exploit.
I decide to withdraw money from an ATM – this costs £1.99 for the privilege. I wanted to check the car’s tire pressure but this is £1 so I’m missing out – I can do it for free at my local garage.
The staff are friendly in the Shell supermarket, but the prices are not. Half a liter of milk costs € 1.50.
In shops less than a mile away I can buy two liters of milk for £1.25. Other basics are as expensive as the shops at the Welcome Break petrol station next to the forecourt.
Price premiums: a single banana was 70 pence and a prawn sandwich was £4.40 at Little Waitrose, where six ‘reduced’ eggs were still £3.60. A one liter bottle of Buxton water was £2.50 and a pack of crisps £1.55 at WHSmith, while a bottle of Cava at the petrol station cost £13
Snack charges not welcome
As I walk through the giant glass arch under a Welcome Break sign, I’m greeted by a myriad of shops and food stalls.
The open design is intended to entice shoppers to spend as they make their way to the restrooms at the rear of the complex.
WHSmith is immediately on the left. I start by stocking up on a one-gallon bottle of Buxton water. It costs € 2.50.
Still, this bottle, bought in a multi-pack at a local supermarket, comes in at 50 pence. Thirsty customers pay 400 percent more for this price than at a gas station.
A pack of Walkers chips with cheese and onion costs £1.55 at WHSmith. But when I scan this 45 gram pack at the till it comes out to £1.60.
I was ripped off before but now I feel downright cheated especially as the same pack would cost £1 across town.
Rip off: Motorists shopping at highway service stations pay an astonishing 300% or more for basic supplies
A pack of Cadbury buttons is another drawback – £3.50 for 95g. Not only am I overpaying, but I am also a victim of so-called ‘shrinkage inflation’ as it is £1.35 for a 119g bag in nearby Tesco and Waitrose supermarkets.
I fancy a cappuccino so head to Starbucks where I’ll pay £3.75 for a tall. It would have cost me £4.15 for a ‘grande’ and £4.45 for a ‘venti’.
But the same cappuccino at a Starbucks in Bishop’s Stortford costs £3.45 for a ‘tall’, £3.95 for a ‘grande’ and £4.15 for a ‘venti’. This is a difference of 30p, 20p and 30p respectively.
I’m tempted by a bottle of Cava Brut, but I shy away from the price – £13 at the petrol station.
Price increases go bananas
There is a Little Waitrose at the Welcome Break, a smaller version of the supermarket, intended for those returning home after a long journey or holiday. And it’s okay to pay a little extra for this convenience.
Bananas: Little Waitrose sells loose bananas for 70 cents each. Yet in town, a mile away, Waitrose sells the exact same fruit for 18 pence
I’m a bit hungry and decide to buy a banana until I see small loose bananas being sold for 70p each.
Waitrose in town a mile away sells the same fruit for 18p, while Marks & Spencer charges 17p and the nearby Tesco 16p. This amounted to a price increase of no less than 338 percent.
I choose a prawn sandwich for £4.40. Had I been smart and bought it from the Waitrose in town it would have cost £3.60 – a saving of 80p.
The Little Waitrose also has the audacity to put a yellow reduced sticker on six ‘essential’ free range eggs – the £4 price being reduced to £3.60 because they can only be displayed for a week before being thrown away.
We know that the price of eggs has skyrocketed, but the same supermarket chain in the city charged just £1.25 for fresher eggs. Seems like a rotten trick.
Waitrose says its branch at the gas station is operated as a franchise, so Welcome Break sets the prices.
The model works much the same at other gas stations, such as Moto’s or BP’s with a Marks & Spencer eatery where prices can be double those of nearby stores.
Silly fuel: The Birchanger Green petrol station on the M11 charged 168.9 pa liters for petrol, while a Tesco station a mile away charged 145.9 p.
A spokesperson for Welcome Break says: ‘As a motorway service provider, we provide a wide range of facilities – from refuelling, toilets and rest areas to meals, drinks and shower facilities.
“By providing 24-hour access every day of the year, operating costs are higher compared to convenience stores and supermarkets.”
I vow never to spend a penny in a gas station again unless for a comfortable break. How long before they charge to use the toilet?
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