RHA condemns fuel forecourt operators
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By Hayley Pink
THE ROAD Haulage Association (RHA) has slammed forecourt operators for their “predatory pricing” of diesel during last month’s run on the pumps, which was sparked by the threat of a tanker driver strike.
Despite the wholesale price coming down, profit margins on diesel have doubled in the last month to about 7.4ppl – which the RHA says is more than twice as much as the Chancellor’s unwelcome 3.02ppl duty rise planned for 1 August.
RHA chief executive Geoff Dunning says there is no justification for the steep price hikes as profit margins for diesel were already reasonable. “The predatory pricing by retailers is a severe blow to the economy and, of particular concern to the RHA, to smaller hauliers who do not have their own bulk fuel supplies but make payments linked to forecourt prices.” The RHA is considering referring forecourt pricing to the Office of Fair Trading.
The UK Petroleum Industry Association, whose members own about 1,900 of the country’s filling stations, says pre-tax pump prices in the UK are among the lowest in Europe because of strong competition. It adds that the market for fuel retailers is tough, with about 450 stations closing every year, the majority of which are small independents.
The Retail Motor Industry, which represents 5,500 independent fuel retailers, was unavailable for comment as CM went to press.