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Fuel Prices Explode: Small Stations Suffer
14 Mar
Summary
- Independent petrol stations face surging oil costs daily.
- Staff endure abuse from frustrated customers over prices.
- Small businesses operate on thin 4% profit margins.
Independent petrol stations are navigating a turbulent period marked by a sharp increase in oil prices, leading to an 18-month high for petrol and a more than two-year high for diesel. For businesses like Goran Raven's, which has been family-owned for four generations, the volatility is particularly challenging.
Unlike larger retailers, smaller stations often pay daily spot prices for fuel. This means they are immediately exposed to market fluctuations, sometimes facing significant cost increases overnight. Raven explains that their storage capacity is limited to just over a day's supply, necessitating adherence to the live market price when tankers deliver.
This financial strain is compounded by customer hostility. Raven and his staff report facing verbal abuse from drivers frustrated by the rising costs. He emphasizes that their profit margins are minimal, around 4%, refuting any notion of profiteering.
The Petrol Retailers Association has criticized government rhetoric, while the Competition and Markets Authority is monitoring the sector for transparency and competition issues, with findings anticipated in April. A new fuel finder app aims to increase market competitiveness by making prices more accessible to motorists.
