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North-south divide over petrol prices

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Written by by Emmeline Saunders, 23/07/10

North-south divide over petrol prices.

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Caravan insurance policyholders travelling around Britain this summer may notice a difference in the price of petrol between the north and the south of the country.

According to the AA, those needing to fill up their tanks in southern Britain will spend on average two pence more a litre than those using petrol stations in northern Britain.

Caravan insurance policyholders travelling through London are likely to be hit with the highest price, with the average price per litre standing at 118.7p. The cheapest area for petrol is in north-west England and in Yorkshire and Humberside, where a litre costs an average of 116.2p.

AA president Edmund King commented: "Summer is the time when lack of fuel-price competition in the most populous part of the UK and sustained increases in fuel duty bear down hardest on businesses that rely on customers to drive to them," adding that caravan insurance policyholders and other tourists are affected by this.

He noted that although the average price of petrol and diesel has fallen by three or four pence since the middle of May, fuel is still 14 per cent more expensive than last summer, which will hit caravan insurance policyholders in the pocket.

Chancellor George Osborne in his Budget last month set out plans to introduce a fuel duty stabiliser to stop motorists bearing the brunt of oil price hikes.

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