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The Bottom Line

How to run a petrol station

The Bottom Line

BBC

Personal Journals, Business, Society & Culture

4.6615 Ratings

🗓️ 23 June 2022

⏱️ 29 minutes

🧾️ Download transcript

Summary

As petrol and diesel prices hit record highs, Evan Davis looks at the economics of running a petrol station. There's an allegation motorists are being ripped off at the pumps. However, the actual amount of profit some forecourts make from selling fuel may come as a surprise. Guests: Kirsty Waddingham, RKW Plumbing David Charman, Parkfoot Garages James Lowman, Association of Convenience Stores David Fyfe, Argus Media

Producer: Nick Holland Sound: Neil Churchill and Rod Farquhar Production Coordinators: Sophie Hill and Siobhan Reed Editor: Hugh Levinson

Transcript

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0:00.0

BBC Sounds, Music, Radio, podcasts.

0:05.0

Hello and welcome to the programme.

0:06.9

For anyone who drives, for work or pleasure,

0:09.6

there is something new to talk about,

0:11.1

a topic that can be added to the weather,

0:13.3

or more recently COVID.

0:15.0

It is, of course, the price of petrol and diesel.

0:18.1

They are both extraordinarily expensive.

0:24.4

Hi, I'm Kirsty. I run a local plumbing and heating company, a local tubercomstead, and the fuel costs are just rising so much that it's starting to

0:30.1

affect our business. 196.9 per litre for diesel and 189.9 for unleaded. That's just crazy. If we're near a fuel station

0:41.4

that's a cheaper price, we'll go in there and top up. If we're near a supermarket, they're often

0:46.2

cheaper, so we'll nip in there and fill up. But we're looking around 160 pounds to fill up a diesel

0:52.3

van. It needs to come down. We can't sustain this.

0:55.0

It's just too expensive. Kirstie there, giving voice to the feelings of millions.

1:01.4

Now petrol retailers, the ones who actually charge these prices, attract all sorts of criticism.

1:07.2

They must be coining it in. The business secretary has his eyes on the four courts too.

1:12.1

Last week, he asked the UK's competition watchdog, the Competition and Markets Authority, the CMA,

1:17.6

to investigate competition in petrol retailing with an allegation that the 5P cut in duty in March

1:24.6

had not been passed on quickly enough. Now, while that is one narrative

1:29.0

that petrol retailers are ripping us off, there's another story too, which is that they're all,

1:33.6

or have been, slowly disappearing because the economics of it don't quite work. So, while the

1:39.2

CMA do there, swift review into the industry, let us do our own. Take a closer look at petrol retailing

...

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