Forecourt operators who pay for their fuel on a daily or ‘spot’ basis are turning to social media to explain that hikes in pump prices are out of their control.
They have used Facebook to explain that because they do not have stocks of fuel bought at lower prices ahead of the start of the Middle East conflict at the weekend, they have had to pass on wholesale increases to customers immediately.
Such increases have seen the industry come under attack in the media because of claims that there ought to be a delay between a global market increase feeding through to pump prices.
Goran Raven, the owner of Raven’s Budgens, took to Facebook yesterday to point out that a tanker load of diesel – which is most badly affected by the recent wholesale price increases – has cost him an extra £3,400, compared with the day before.
Much media coverage has focused on petrol stations having a two or three week buying lag, meaning that pump prices should not increase imminently, because tanks are holding fuel which was bought at pre-conflict prices.
But smaller independent firms like Raven’s typically buy their fuel from oil companies on a daily or ‘spot’ basis.
This has led to Raven adding 18p a litre onto diesel, and 2p a litre onto unleaded at his forecourt in Abridge, Essex.
He told his followers that this extra cost represents over three times the profit he makes: “as a family run business we just cannot operate at these huge losses,” he explained.
He added. “These price hikes are completely out of our control. I just wanted to let you know why the prices have done what they have.”
Similarly, on Tuesday, King’s Garage in Stickney, Boston, told its customers: “Due to the situation in Iran we are very sorry to have to let our valued customers know that the price of diesel will be increasing to 167.9ppl (we are out of stock today, but a delivery is expected tomorrow.”
And Harleston Service Station in Norfolk said today (Thursday): “Over the last 48 hours the price of diesel has gone up 15p per litre to us. This is two times the profit we make per litre. As a family run business we just cannot operate at these huge losses without moving the price up.”
Customer feedback has generally been positive to these operators, with one person telling Raven: ”It’s good that someone who knows what they are talking about is actually explaining it rather than all the keyboard warriors.”
Another added: “Thanks for your explanation, it is what it is.”
Raven told Forecourt Trader: “We have teeny tiny tanks and need a delivery a day at Abridge so when prices go up we get murdered. Conversely though, when they come down we can drop quicker than others.”
He added: “I’ve been really pleased with the reaction from the public to my Facebook post. They’ve been largely very supportive and it makes me think that as an industry we should explain ourselves in this way more in the future.”
“In our area we have not seen panic buying, despite the press whipping things up, but I’d say we are experiencing Friday’s level of customers every day at the moment.”
