Owner of three of Burnley's main petrol stations assures customers his company is not profiteering in fuel price crisis

Kay Group owner Ken Kay, which owns and runs Kitchens in Trafalgar Street, Texaco in Rossendale Road and Eastern Avenue service stations, said the 5p a litre fuel duty cut announced by the government last week could not be passed on to the customer immediately as many businesses still had up to two weeks worth of fuel stored underground they needed to sell first.

Mr Kay, who said that fuel sales were down by 10 per cent and shop sales suffered a five per cent loss on his forecourts, also said that businesses like his could not compete price wise with supermarkets selling fuel as the stores did not rely on this side of the business as their major profit earner.

He said: "For us this is our main source of profit but for the hypermarkets it is more of a promotional tool.

"They also have a lot less fuel stored underground they have to sell first, maybe only five to seven days worth."

Supermarkets can also offer fuel at cheaper prices than garages as they are not selling a 'branded' product.

Names such as BP, Esso and Shell will usually add a wide range of special additives to their own fuels in order to improve efficiency and performance and to make the engine run smoother.

The government has said the fuel duty reduction, which will last for a year, will help drivers cope with rising fuel costs. Chancellor Rishi Sunak announced the measure in his spring statement in response to pressure to take action as prices at the pump rose to a record high.

According to figures from the RAC, a 5p reduction in fuel duty makes it £3.30 cheaper to fill up a typical family car with a 55-litre tank.

At the start of the pandemic demand for energy collapsed - pushing down prices. As life has returned to normal suppliers have sometimes struggled to meet this demand and prices have risen.

Prices were rising before the Russian invasion of Ukraine but the fallout from it has made things worse.