PRA warns of forecourt closures
The Petrol Retailers Association (PRA) has warned that many petrol stations will have to close in the coming weeks, as sales of fuel dry up and their businesses become unviable.
This weekend’s Department for Business, Energy & Industrial Strategy (BEIS) survey covering nearly 60% of all petrol filling stations (PFS) across the UK, including supermarkets, oil company and independent sites, showed much lower levels of fuel demand.
Petrol consumption was down by 75% and diesel by 71% as the public heeds the government’s stay-at-home instructions.
The PRA is recommending that the government must instruct fuel suppliers to give the same 60-day credit terms to independent filling stations as they give to the supermarkets.
PRA chairman Brian Madderson said: “To help freight move and help key workers travel safely and independently through this period of crisis, [PFS] must remain open, but this is proving to be a challenge for many filling stations.
“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% of the pump price. It is in their interests that we remain open for business,” he added.
