PRESSURE to cut prices could lead to petrol forecourt closures across the island. The warning came from Guernsey Motor Trades Association chairman Dave Beausire after an independent report claimed retailers were ripping off customers by up to 30%.
‘If it doesn’t pay, it doesn’t stay,’ said Mr Beasuire.
‘We’re businessmen - we’re not here to help people. We’re here to employ local staff and to ensure we get a return on our investment.’
The owner of Le Mont Saint Garage said smaller independent sites were only just breaking even with existing prices.
And he believes any closures would hit communities hard.
‘Free air will be gone, service attendants will be gone, personal accounts will be gone,’ he said.
‘We’ve already seen it happen with the small corner shops. As contracts come to an end in the next few years, smaller sites will review their position. This could cause fewer fuel sites in Guernsey and more people unemployed.’
Mr Beausire said fuel sales represented only around 15% of his business.
But he was disappointed with the lack of support shown by the States.
‘Those who have just saved the milkmen’s future are, in a matter of weeks, condemning the small sites to the slaughter,’ he said.
‘Sadly they seem to have no interest in anything other than the finance industry.’
The GMTA chairman also criticised planned legislation that would force garages to advertise fuel prices on the road.
‘It’s like putting a list outside every shop on the High Street,’ he said.
‘It’s just common sense - people can drive in and see the fuel price. And if they don’t like it, they can come in and ask me - which you wouldn’t be able to do in a supermarket station.’
Frank Leale, who has been running Leale’s Garage in Mont Arrive for 54 years, said a cut in fuel prices would put him out of business if he had to pay a mortgage or rent as well.
‘You don’t make enough to crow about in the first place,’ he said.
‘What people don’t realise is there’s heavy insurance cover and things like maintaining the pumps as well.’
San Lorenzo Garage owner Ian Bowtle said a cut in price would not necessarily lead to closures, but might force smaller businesses to rethink their strategy.
‘Fortunately the petrol side is a very small part of my business,’ he said.
‘But it doesn’t make it any less annoying.’
He added that it appeared petrol stations were being penalised for making a profit.
‘It just makes you wonder what they’re going to hit next - it’s consumerism gone mad.’
* Guernsey has 33 petrol stations. Twenty-five are independent sites, which pump an average of 633,000 litres per year and serve 48% of the fuel. Fifteen of these pump fewer than 500,000 litres.
Article posted on 17th May, 2007 - 12.00am
Loading ...
Most Commented: