The PRA has issued a warning over the plight of independent fuel retailers over the next few months, predicting that the astrononomic rise in energy costs could cripple many, leaving the nation’s fuel resilience compromised.
The Association’s executive director Gordon Balmer believes fuel retail margins need to rise to at least 15ppl if independent petrol stations are to remain viable businesses throughout this winter.
His concern for members follows the RAC’s conclusion that ’enterprising independents’ had been much more willing than supermarkets to cut their prices, and in some cases have undercut them.
Balmer said: ”Over the last few weeks independently-owned petrol stations - many of which are single site family-owned businesses - have been praised by motoring organisations for charging a “fair price for fuel” as the price of oil has fallen. These cuts to the pump price have taken place despite rising operating costs.
“However, petrol stations are not immune from the rise in energy prices and many of our members are reporting that they are now facing a 300% increase in their electricity price as energy costs for businesses are not capped.”
Balmer confirmed that the PRA had recently written to the incoming Prime Minister for urgent help with this: ”In their most recent press release the RAC has indicated that a 10ppl margin is generous,” he said. “But after taking account of storage and delivery costs, biofuel add-ons and the reduction in margin for fuel card transactions, petrol stations now need to be aiming to make at least 15ppl margin on the price of fuel.
“The country’s economy relies on our petrol station network, 65% of which are independent petrol stations. If a swathe of petrol stations were to close this winter because they could not remain in business, it would hit the communities that rely on the fuel and food they supply, and the nation’s fuel resilience would be compromised.”
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