Petrol prices in northern Lincolnshire are varying by as much as 10p a litre depending on which filling station you visit.

One of the cheapest is Saltfleet's windmill garage which is offering petrol at £1.39 per litre.

A few miles away on the A16 at Toll Bar Esso has petrol at £1.48 and diesel at £1.51.

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It broke the £1.50 mark about a month ago as global oil prices peaked.

Petrol prices have climbed in line with global oil market prices, which have more than doubled from a year ago.

On average a 55-litre tank of petrol will set you back an average of £81 in the UK, compared to an approximate £66 a year ago.

But why is there such a variation in prices on northern Lincolnshire?

Petrol and diesel prices at Sainsburys, Grimsby
Petrol and diesel prices at Sainsburys, Grimsby

Adrian Major took delivery of another 15,000 litres of fuel at his garage at Saltfleet.

He used to work as a tanker driver for 22 years. The Windmill garage, which takes its name from the iconic landmark in the coastal village, is offering petrol at £1.38 per litre.

Tesco in Cleethorpes is £1.43 for unleaded and £1.46 for diesel, as of Thursday, December 16.

Sainsburys prices are £1.44 and £1.47 for diesel, with Asda and Morrisons the same prices of £1.42 and £1.44 respectively.

The Jet garage on Cromwell Road was £1.45 for unleaded and £1.49 for diesel.

Petrol Prices at Jet, Cromwell Road, Grimsby
Petrol Prices at Jet, Cromwell Road, Grimsby

Adrian said: "It is not just a penny or two difference round here now it is 10p difference. That is a lot when you are filling up.

"It is unusual when the refineries will be getting their oil cheaper now yet at the pumps it is still really high.

"You just need to go along the A180 and you have Shell at 11p more than me. Even going around Grimsby there is such a variation in prices.

"Are they profiteering because the price of oil is coming down when you look at the price of a barrel of oil now compared to a over a month ago?"

Asda, Grimsby has among the lowest price in town
Asda, Grimsby has among the lowest price in town

He added: "We get a lot of people who have been travelling to see the seals at Donna Nook commenting on the price we have it compared to where they are from."

There are numerous elements that make up the price of a litre of petrol or diesel, primarily the Government's share in tax.

It is currently at 57.95p/litre in duty on petrol and diesel. The two other main factors are the cost of petrol and diesel on the open market and the costs and profit of the wholesaler and the retailer at the filling station.

Analysts refer to this as the retail/ex-refinery spread.

These also take account of costs of transport to a storage terminal or depot, then storage, and distribution to a filling station.

The retailers will also aim to off-set their marketing and promotion costs with a price rise. Retailers also have additional operating and staff costs to meet.

If salaries rise they may well want to put that increase on to the price of the product.

The cost of fuel at Morrisons at Laceby
The cost of fuel at Morrisons at Laceby

Experts also say fluctuations in the markets can impact on prices locally. Crude oil is traded on international markets and from it a whole variety of products are derived, including petrol, diesel, aviation fuel and heating oil.

While there is a connection between the underlying price of crude oil and pump prices, the internationally-traded price of petrol and diesel and the $/£ exchange rate are major influences on pump prices.

Howard Cox of the FairFuelUK campaign said the difference between the wholesale price and the price motorists pay at the pumps had double since last year to 30p.

He said: "The economy, hauliers, small business and UK's already highly taxed drivers are being fleeced relentlessly and without scrutiny by oil companies and wholesalers. The other winner is of course, the Treasury wallowing in billions of VAT from the current windfall high pump prices.

"The pump pricing process remains opaque, unfair and a closely guarded secret in the fuel supply chain. It's time for 37m drivers to have some sort of consumer price protection and transparency for such a vital resource. A new watchdog that is just as vital as the ones for electricity, gas, water and telecoms."

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