Fuel Stations Face Closure As Petrol Sales Drop By 75%
Fuel stations across the country are facing the prospect of closing their doors for good, as the sale of petrol declines by 75% during the nation’s lockdown.
Fuel Station Closures Imminent
Many fuel stations across the UK are faced with prospect of closing over the coming weeks in the face of a decline of sales. Petrol sales are down by 75% and diesel sales are close behind with a 71% decline. The Petrol Retailers Association (PRA) has issued a warning that this has rendered many of the stations unviable; especially those in rural areas. Closures have already been reported in the South West, Scotland and Northern Ireland. To make matters worse, supermarkets are ruthlessly pursing competitive pricing to give themselves an advantage whilst the nation is in lockdown. Fuel suppliers are also failing to offer flexible credit terms and delivery times.
Brian Madderson, chairman of the PRA, couldn’t confirm that closing fuel stations would be able to return to business once the Coronavirus pandemic begins to wane. He said, “to help freight move and help key workers travel safely and independently through this period of crisis, petrol filling stations must remain open, but this is proving to be a challenge for many filling stations,” said Madderson”. He added, “fuel retailers are having to maintain pump prices at previous levels to avoid suffering significant stock losses. When the COVID-19 restrictions are lifted and high sales volumes return, then we expect to see reductions in retail fuel prices. Petrol stations are the Government’s tax collectors, with duty and VAT representing 70 per cent of the pump price. It is in their interests that we remain open for business”.
Full Storage Tanks
The Department for Business, Energy & Industrial Strategy has recently conducted a survey of nearly 60% of the nation’s fuel stations. It discovered that the vast majority of them have full tanks of both petrol and diesel. These would have been filled weeks ago, when wholesale prices were much higher than they are today. The Brent Crude (a price for worldwide oil purchasing) has collapsed to an 18-year low of £16 a barrel. As a result, the PRA has asked the government to ensure fuel suppliers are providing 60-day credit terms to independent filling stations; the same they give to supermarkets.
Independent fuel retailers can often go unappreciated. But the flexibility and accessibility they provide are enjoyed by millions of motorists and on a day-to-day basis. Without them, some drivers could find themselves having to drive further and further away from home in order to fuel up. This is especially the case for isolated and rural communities; who don’t have access to the same amount of infrastructure and choice as other areas of the country.
Running On Fumes? You’re Damaging Your Car – https://autoserve.co.uk/motoring-news/running-on-fumes-youre-damaging-your-car/
The Top Ten Petrol Station Annoyances And Irritants – https://www.autoserveclub.co.uk/blog/the-top-ten-petrol-station-annoyances-and-irritants/