Thousands of independent petrol stations are ‘desperately trying to stay open’. That’s according to the Petrol Retailers Association (PRA).
It says that up to 100 petrol stations have been forced to close their doors during the lockdown. Of those that have remained open, many have had to reduce their operating hours, with staff lost to COVID-19 symptoms or the need to self-isolate.
Road travel has dropped by 73 percent during the lockdown, placing further pressure on independent retailers. Many petrol stations rely on non-fuel purchases to boost their profits – and fewer customers means fewer sales.
That’s not all. At the beginning of March, a barrel of crude oil cost $50, but by the end of the month it had plummeted by 66 percent to less than $18: the lowest level in 18 years.
As a result, more than 9p came off the average price of unleaded in the month, with diesel down 8p. RAC fuel spokesperson Simon Williams said: “We are very mindful at this time of the pressure this can place on smaller, independent forecourts that provide a vital service where there is no supermarket footprint.
“While we all want reasonably priced fuel for our essential journeys, surely none of us want to see smaller enterprises going out of business trying to match the supermarkets’ big price cuts at a time when so few of us are driving compared to normal.”
’Petrol stations have been hit very hard’
The PRA has warned that 1,000 retailers could be lost as a result of the coronavirus and plummeting oil prices.
“These petrol stations have been hit very hard by the biggest, fastest drop in demand that any of us has ever witnessed” said Brian Madderson, chairman of the Petrol Retailers Association.
“For some of our members, this drop has been as much as 85 percent of normal volume leading to a huge cash flow crisis. The sector is unique, with over 70 percent of income taken by the Government through fuel duty and VAT. There is a cash grant of £25,000 available to small and medium size petrol stations, but this is swallowed by the next delivery, with a tanker needing over £26,000 just to pay the tax.
“There is speculation from some motoring organisations and lobby groups that UK fuel prices will tumble fast as a result of the historic event in North America yesterday, when the value of oil moved into negative territory.”
“However, with such low demand for road fuel, most petrol stations would risk their financial viability if they had to reduce prices still further. Instead of 100 closures, we could see 1,000 – severely disadvantaging so many of the essential frontline workers.
“The target remains to keep open and provide continuity of service.”
ALSO READ
How to self-isolate your electric or plug-in hybrid car
April 2020 new car sales collapse to 1946 levels – but Tesla Model 3 is number 1
Chevrolet NASCAR raced by Dale Earnhardt to be auctioned for charity