Forecourt Trader - 30 years at the heart of the fuel retailing community
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The police have got it wrong

As police services across the UK have cut the number of frontline officers in response to funding pressures, chief constables and politicians have been looking for ways to ease the burden on the remaining crime fighters. One way that has been repeatedly suggested is downgrading the importance attached to forecourt drive-off crimes. It is a policy that has been proposed by a number of police chiefs over the years, but the first time it made major national headlines was in 2014.

Turning the tide

For many years the government has turned a deaf ear whenever the PRA and the Car Wash Association (CWA) have highlighted the scourge of illegal hand car washes springing up in towns and cities across the UK, but finally it has been presented with evidence it can't ignore. The Commons Environment Audit Committee (EAC) has completed its inquiry into hand car washes (HCWs) and the cross-party group of MPs has produced a report containing hard-hitting criticism of authorities for failing to enforce the law and recommendations on how corrupt HCWs can be tackled.

Turning the tide

The sell-offs of large tranches of their forecourt estates by some of the biggest oil companies has changed the structure of the UK market for most of this century. No one would argue that MRH, MFG, Euro Garages and Rontec would not have been the dominant groups in the Top 50 Indies in 2018, whether or not there had been the sell-offs, but they would be nowhere as big as they are without them.

Deals that dominate the market

After its predecessor, the Office of Fair Trading (OFT), gave the road fuels market a clean bill of health in early 2013, the Competition & Markets Authority (CMA) has ignored calls for a fresh inquiry and left the sector well alone. But two major deals mean it is now assessing businesses that between them own 18.5% of the UK's forecourts and account for almost a quarter of the road fuel sold in the UK.

A rocky road ahead

The Road to Zero strategy is nothing short of the government's blueprint to phase out two of the bed rocks of the forecourt sector petrol and diesel. While the 'zero' it refers to is emissions from road vehicles, its method for achieving this is prohibiting the sale of all new petrol and diesel cars (excluding hybrids) by 2040, and aiming for close to nil on the roads by 2050.

Conundrums for retail managers

Facing change and challenges are major aspects of the job of a retail manager in the fuels marketing and forecourt retailing sector. Looking at the market now compared with where it was five years ago, there has been significant change and upheaval. There are, however, some things that never change the most important of which is that if you are not looking after your customers and keeping up with or preferably ahead of your rivals and market trends, you are falling behind.

Targeting the cowboys

Years of campaigning by the PRA and Car Wash Association paid off last month when their chairman, Brian Madderson, was invited to give evidence to MPs on the damage unregulated hand car washes are wreaking on the legitimate trade, and the environment. The House of Commons Environmental Audit Committee has used a wide interpretation of its brief to investigate not only the pollution caused by hand car washes (HCWs), but also the harm they cause to sustainability in terms of labour exploitation and other associated criminality.

Fuel for thought

None of the pontificating politicians in Westminster, who are currently debating forcing forecourts to install electric charging points, appear to have given any thought to the practical issues involved. Had they attended the launch of the fourth edition of the Blue Book they would now be having second thoughts.

UK Hand Car Wash Market - Key Fact

Size >10,000 hand car washes (7,000 mechanical washes), around 60% of total

Turning the tide

With the National Crime Agency investigating links with organised crime and drug smuggling, and raids almost on a daily basis looking for slaves among their work forces, illicit hand car wash operators were probably wondering when MPs would wake up to the problems they pose. What few were expecting, however, was that it was their appalling record of environmental carnage, which has faced minimal enforcement from the authorities, that has finally tipped the balance.

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Weekly retail fuel prices: 21 October 2019
RegionDieselLPGSuper ULUL
East131.6457.90138.61127.24
East Midlands131.4582.90140.26127.28
London131.3759.90140.88127.80
North East130.33141.51126.31
North West130.8257.70140.42127.09
Northern Ireland129.08132.76125.41
Scotland131.52137.33126.92
South East132.2771.90140.82127.99
South West131.36137.85127.21
Wales130.48135.82126.30
West Midlands131.0761.40139.08127.20
Yorkshire & Humber130.7584.90140.34126.99

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When a major car manufacturer like Ford predicts that sales of its electrified cars will outnumber petrol and diesel models by 2022, does that ring alarm bells about the possible speed of change for forecourts?

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