ONE of the island’s main fuel suppliers has leapt to the defence of small petrol stations following allegations that motorists are being ripped off. Fuel Supplies (CI) Ltd business development manager Allan Lawson said the huge difference in volumes pumped meant that most Guernsey garages could not be measured against UK sites.
His comments came after an independent report claimed some local stations were working on a margin of 18p per litre, compared to less than 5p in the UK and 7p in Jersey.
The motor trade rejected the findings, saying the average mark-up was about 13p.
‘It’s very unfair to compare them in this way,’ said Mr Lawson.
‘You can go to a site in the UK that pumps 10m. litres, but has the same amount of infrastructure as a garage in Guernsey, which typically pumps around 500,000.
‘Clearly the former has a much bigger revenue but with similar overheads.
‘In Guernsey, there are very small, parochial-type garages which serve the parish and pump only a fraction of what they do in the UK.’
Mr Lawson estimated the average local motorist spent about £20 on fuel per week. In the UK, the average was closer to £30 and there were far more customers.
‘Even a couple of pence saving would put small sites out of business and people out of work,’ he said.
He said smaller sites in Jersey had closed after a similar report was published two years ago.
And he believes having lots of garages helps create competition.
‘We will have to see how the retailers respond,’ he said.
Guernsey is currently served by three fuel suppliers - Total, Guernsey Petroleum Distributors and Fuel Supplies.
The report, commissioned by Commerce and Employment, said the introduction of a fourth party would drive consumer prices upward.
Mr Lawson agreed, believing the island’s market was well served by existing suppliers.
The investigation also estimated fuel costs could be cut by having just one fuel-storage depot - like in Jersey - instead of two: Fuel Supplies and Total.
Mr Lawson said this could work in the long term, but given that suppliers have invested in their own infrastructure, he was concerned it might have the opposite effect in the immediate future.
Total has spent £3m. upgrading its terminal over the past two years and general manager Stephen Rhodes doubted whether a single depot was in the island’s best interests.
‘As an island community, it’s a matter of critical importance that we have secure and safe energy provision,’ he said.
‘Two terminals provide islanders with that security.
‘There is an excellent level of robustness and stringent safety standards within our facility.
‘By also having a second terminal, islanders have complete energy security in the unlikely event of an operational problem at either one.’
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