Latest Fuel News

There is a concern that parts of the UK could become “fuel deserts” with nowhere for motorists to fuel their vehicles after it emerged that the number of filling stations in the UK has fallen to it’s lowest level since 1913.

Unbelievably, 95 years ago there were more service stations around with 10,100 sites available. That figure has fallen to 9,400 in 2008,  which serve 33 million vehicles, 31 million of which are cars.

The fall in numbers is due to the tiny margins, aggressive pricing and high overheads that fuel retailers face, with according to the Petrol Retailers Association (PRA), an efficient business grossing just 2% per annum on investment.

Such low returns have resulted in just 20 new forecourts opening in the last five years, most of which are attached to supermarkets whilst closures have averaged 450 a year during the same period.

If this rate of decline continues, it will take just four years for the number of UK filling stations to fall below the critical level of 7,500 – the numbers of sites estimated by the PRA as the bare minimum to keep the country moving.

But motorists in some rural areas are already struggling to find anywhere to refill their vehicles.

The AA said “We know there are some areas of the UK where supply no longer exists at a local level, meaning there’s a real risk of some drivers running out of fuel.”

Margins are so miniscule that forecourts use fuel simply to attract customers to their convenience stores. In fact, 86% of filling stations now have a convenience store which runs as their main profit centre. This however has not been enough to slow the continued number of closures.

“Fuel retailers work under great financial pressure in order to provide a vital service” said Ray Holloway, PRA Director. “Many fuel retailers are barely clearing costs. There are now fewer than 9,500 forecourts in the UK, including supermarket filling stations,” he said.

“The situation could become critical if the total number of forecourts continues to drop at the rate of recent years.”

To hioghlight the problem in the South West, the Highways Agency has launched a campaign this week to reduce the number of motorists breaking down in the area because they’ve run out of fuel, with officers present at Motorway Service Areas demonstating where drivers can top up.

The campaign coincides with news that shows over half of UK motorists believe there is a shortage of filling stations available across Great Britain.

“On the one hand, fuel price competition is good for motorists but if it’s driving smaller independent filling stations out of business in some areas,” said David Shelton, Managing Director of Motorpoint who carried out the survey.

“More and more people are going to be forced to buy fuel from the supermarkets who may then feel able to push prices up.”

The PRA believe Government intevention is critical with one suggestion being to extend business rate relief to forecourts in urban locations.

Shell have announced plans to build a retro-style filling station at Newport Pagnell, Buckinghamshire as the pilot for a rollout of its retro brand concept.Construction of the first site close to the Aston Martin dealership has started and will be called “Shell Woad Corner”.

It will measure approximately 14,000 sq.ft and be an art-deco complex with classic car showroom, offices, retail space, bar, restaurant and a filling station complete with 1950’s-style Shell pumps.

Attendant service will be brought back at Shell Woad Corner, after being replaced by self service over twenty years ago.

Through ‘brand guardian’ Magic of Motoring, Shell created an art-deco station at last year’s Goodwood Revival.

As a direct result of the trial, Mick Pacey, at Magic of Motoring has pinpointed Japan, Italy, France, Germany and the USA as countries for further classic venues, but the UK will be the first.

Mr Pacey said: “We are recreating the romance and glamour of motoring of the 1950s and 60s.

“The new retro venues will be a destination environment for car owners to meet, be entertained and relive the glory years of motoring.

“There will be events, exhibitions, demonstrations, auctions, rallies, automotive retailers, a restaurant, an MOT station, in fact, everything a motoring enthusiast could wish for, combined with a service that harks back to a simpler way of life.”

 Overall, 25 similar developments are planned to open in the 16 countries where Shell is a major retailer, typically in locations of major historic motoring significance.

For further information on our range of euroShell Fuel Cards, please visit http://www.forecourtfuelcards.co.uk/shell-fuel-card.html

The Petrol Retailers Association (PRA) along with other organisations have written to the Chancellor urging him to abandon plans to increase fuel duty again in April this year. The letter calls on Alistair Darling to hold off the move to add another 2p per litre to the price at the pumps from April 1, warning it will create “serious difficulties” for forecourt industries and other sectors in the UK.

The letter, co-signed by PRA director Ray Holloway, along with eleven representatives of key organisations in the transport industry, reads:

“Sir – At 50.35p per litre, UK fuel duty for diesel and petrol is already the highest in Europe. Indeed UK diesel duty is double the EU average rate of 25p per litre. The Chancellor now plans to increase this by 2p per litre from 1 April. Such an increase will generate further serious difficulties for the transport and forecourt industries, business drivers, those dependent on the car, and for businesses or individuals in remote or rural areas with no alternative transport options.

During the last eighteen months the whole of UK industry has experienced increased costs as a consequence of higher oil prices on the world market. At a time when we are suffering from the joint threats of an economic slowdown and increasing inflation, the higher costs of transporting goods and services resulting from price rises for fuel have impacted on every single company throughout the UK, and thus on their customers.

Clearly the Chancellor can have little or no influence on the world price of oil, although he enjoys unbudgeted income when it rises. However, he is responsible for the greater part of the cost of diesel and petrol which is made up of fuel duty and VAT. These taxes constitute almost two-thirds of pump prices – for every £1.05 per litre the Government collects 66p.

In the interests of every company moving goods and their customers, and of the economy in general, we the undersigned call on the Chancellor to recognise these problems and to abandon his plans for a 2p per litre increase in fuel duty from 1 April.”

The letter has been signed by representatives from the Freight Transport Association, Road Haulage Association, Automobile Association, British Association of Removers, British Chambers of Commerce, Confederation of Passenger Transport, Federation of Small Businesses, Forum of Private Business, National Farmers Union, Petrol Retailers’ Association and the RAC Foundation

Companies operating a fleet of 100% diesel vehicles will be relieved to discover that a report advising the European Commission on long term oil policy has recommended that Brussels increasingly favours diesel over petrol.

The report which was compiled by Texas based firm Purvin & Gertz, states that despite recent technical improvements to petrol refining, diesel consumption still emits far less CO2.

It said: “CO2 emissions from these latest engines remain higher than those from their diesel powered equivalents. If the Commission is to maintain it’s current position regarding the lowering of CO2 emissions, it should look to encourage as large a consumer uptake of diesels as possible.”

It added that “allowing tax breaks either through lowering the purchase price of diesel vehicles and  / or adopting an EU-wide policy of lower diesel fuel duty compared with petrol can help further the acceptance of diesels”.

A recent survey carried out by Skoda has revealed that company car drivers appear to be spending less time behind the wheel. Statistics show that 46% now spend less than two hours a day driving, while just 8% spend longer than 30 hours a week behind the wheel.

With the average commuting time in many areas now reaching over one hour per day, this suggests that almost half of comapny car drivers are using their vehicle just to get to and fro from their office! The survey also suggests that stresses such as fatigue and traffic congestion are starting to affect attitudes towards company car usage.

Whilst drivers may be spending less time behind the wheel, they are showing no signs of abandoning their company cars. The survey shows that their is still a split opinion on adopting alternatives such as video conferencing and working from home with 46% in favour and 45% against.

Martin Burke, head of business sales at Skoda said: “When it comes to work related travel, the car remains the business tool of choice. Benefits of face to face interaction and a break from the office clearly offset the nuisance of traffic congestion for most workers.” 

Ken Livingstone has delayed the decision on whether cars producing 120g or less of CO2 per kilometre will be made exempt from the congestion charge. It was indicated last year that these vehicles would join electric and hybrid vehicles and not be liable to pay the congestion charge when entering central London. This had been expected to happen today, 4th February.

However, the mayor’s office has indicated that these vehicles will continue to pay the charge for the forseeable future, and that a decision will be made “shortly”.

The delay in confirming their stance has left fleet managers in a difficult position, as somehave already made the decision to purchase sub-120g cars in the belief that they will be exempt.

While fleet managers are left speculating which way mayor Livingstone will go with sub-120g vehicles, they are no closer to knowing Boris Johnson’s thinking on congestion charging.

Mr Johnson is the leading opponent in the mayoral elections, which will be held on May 1.

Mr Johnson’s office has said he also is still considering his position on congestion charging, and will not be discussing it until closer to the election