News

Rural petrol stations struggling to survive

Posted by The Journal on Jun 29, 09 11:01 AM in News

Independent rural petrol stations are facing an increasing battle just to survive, as they struggle to compete with their bigger rivals.

Many of the stations also act as convenience stores in their local communities, but dozens have closed over the last few years, in yet another blow to the rural economy.

Gordon Moore, proprietor of the Border Reiver Station in Knowesgate

Gordon Moore, pictured, who owns the Border Reiver Station in Knowesgate, Northumberland, said the margin on fuel from his station is tiny.

He said: "Most rural petrol stations are under real pressure just to survive. We make no money from fuel at all.

"About half our customers just use us as a shop, we provide an essential mini mart service to the community, selling bread and milk and other groceries. "People rely on us.

"People have accused us of profiteering in the past but that is not what happens. We make about three pence a litre on fuel, we just can't compete. The big supermarkets have massive buying power, that is why they can sell fuel so cheap.

"There are very few places were you can get fuel now out here. If many more stations close it could start to have an impact on tourism because people won't know if they can get fuel if they drive out here.

"The Government will have to think about introducing some kind of subsidy because we are not on a level playing field at the moment."

Last week The Journal reported how the rising cost of fuel was hitting taxi drivers, hauliers and other businesses.

Les Jewitt, who runs a petrol station in Chollerford, Northumberland also said he was struggling and had considered stopping selling fuel.

"I sell a few cars on my forecourt which allows me to keep going. I make more money out of that and I have considered getting rid of the pumps and putting more cars in the space.

"The supermarkets actually sell fuel to customers cheaper than I can get it from my suppliers. There is no way of negotiating because I buy in such small amounts. I sell it at a loss at times just to try to get people into the shop.

"There is no other petrol station along Hadrian's Wall between Newcastle and Carlisle. And they are very few between here and Scotland. If I stopped selling petrol there would be serious problems for anyone needing to get hold of fuel."

Sir Alan Beith, MP for Berwick, said the Government should put pressure on fuel suppliers to sell fuel to small operators more cheaply. He said: "This a real problem for rural communities. If these stations close people have to drive a lot further to get fuel and that is a waste.

"Plus many of them provide essential services such as selling food for their local communities."

petrolprices.comYou can find out the latest fuel prices for the local area at www.petrolprices.com.

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