Focusing On The Future Of Rural Petrol Stations

26th May 2009

Following a presentation to The Highland Council's Planning, Environment and Development Committee Members have given their full support for the Council to work with its partners HIE and HITRANS to raise awareness of the economic problems facing rural petrol stations and look at ways of securing a sustainable and accessible network of fuel supply throughout the Highland area.

Experian Catalist were commissioned to produce a comprehensive study looking at the future of the 231 petrol stations currently operating over the Highlands and Islands area. During his presentation, Arthur Renshaw from the company highlighted that 143 of these petrol stations are sited in very remote rural areas and the majority of them are independently owned. When consulting with owners the main concern raised was the profitability of sites with the many owners saying they were already operating at the edge of viability and this is made worse by the cost of investment needed to comply with environmental legislation. Members were told that the real concern which has come to light from the study is that if nothing is done to reverse current trends, over half of the petrol stations would face closure over the next 10 years leading to a dramatic decrease in the availability of fuel in the remote rural areas of Highland.

In his summary Arthur said that to improve the profitability of rural petrol stations measures need to be taken that lead to an increase in the volume of fuel sold, and increase in profit margins and a reduction in operating costs.

Chairman Councillor Ian Ross said that the study had raised significant concerns that require to be urgently addressed. "We must work with our partners to emphasis the effect doing nothing will have on our rural communities and for the future of tourism in the Highlands. It is important that the public, communities and politicians fully understand the threat facing the wide availability of our fuel supply is a real one and action is needed now.

"Our immediate priority is to develop the evidence so we have a very strong and robust case to lobby for support and to clarify what funding support is currently available.

"We are fully aware that any steps we take are not without challenges. We need to look at innovative low cost solutions, such as having un-maned sites operating 24 hours a day, and financial support for capital investment. Having a local fuel supply is the life line for our rural communities and is a determining factor for tourists when deciding where to visit. All our efforts will now be focused on working together to safeguard the future of petrol stations."