HIGHER ENERGY COSTS FORCE UP FUEL RETAILER MARGINS

Fuel retail margins need to rise, suggests the Executive Director of the Petrol Retailers Association today if independent petrol stations are to remain viable businesses throughout this winter.

Gordon Balmer, Executive Director of the PRA, said:
 

“Over the last few weeks independently owned petrol stations many of which are single site family-owned businesses, have been praised by motoring organizations 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 three hundred per cent increase in their electricity price as energy costs for businesses are not capped. The PRA has recently written to the incoming Prime Minister for urgent help with this. In their most recent press release the RAC has indicated that a 10.0ppl margin is generous,  but after taking account of storage and delivery costs, biofuel add-ons and the reduction in margin for fuel cards transactions, petrol stations now need to be aiming to make at least 15 pence per litre 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 relies on the fuel and food they supply, and the nation’s fuel resilience would be compromised.”

ENDS
 

NOTES TO EDITORS

Annaluce Cavalmoretti, RMI Communications Assistant

Direct: 0207 307 3410

Mobile: 0752 897 7157 
 

Email: annaluce.cavalmoretti@rmif.co.uk