Family-run petrol stations call for help amid UK fuel crisis

Multiple Oxfordshire petrol stations have said the Government should reduce VAT on petrol and diesel as their profit margins collapse.

Fuel prices across the UK have seen a sharp increase since the US and Israel launched their initial strikes at Iran on February 28.

This is largely due to the closure of the Strait of Hormuz, an important shipping route to the south of Iran.

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Nick Allen, managing director at Sportif Suzuki in Long Hanborough said the week after the war began, they were told last minute that their diesel supply – usually between 34,000 and 38,000 litres – would be halved.

Although the business’ fuel levels have since returned to normal there have been other reports around Oxfordshire and the UK of fuel shortages.

Milton Service Station in Oxfordshire (Image: Google Maps)

A spokesperson for Sainsbury’s, which manages a number of forecourts, said: “We are actively monitoring stock levels in all locations and continuing to resupply sites where needed.”

Mr Allen’s business has also been hit by the dramatic increase in prices, which according to the RAC has been on average 25.5 per cent per litre for diesel and 13.7 per cent per litre for unleaded petrol between February 26 and March 27.

He explained that their station’s pricing is dependent on the terminal and is fixed weekly.

“We try our best to match the lowest prices in our area, but everyone’s pricing is dependent on different systems,” he said.

Normally they would look to around 4p or 5p per litre as a profit margin, but he said they were “very close to cost price at the moment”.

Martin Prew, owner of Milton Service Station, also said they were making little money on fuel, with their margins approximately halved.

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“The margins are a lot thinner” he said, adding on overall prices: “Over the last six weeks the wholesale price is about 40p a litre more for diesel and a 20p rise for petrol.”

Both were critical of the government’s current refusal to reduce VAT, which is set at 20 per cent.

Mr Allen said: “There should be a temporary reduction on VAT and fuel duty. 

“At the moment, it is not right. Rachel Reeves talks about profiteering, but she should look at herself.”

Mr Prew said: “They are collecting more taxes than two months ago, and VAT is a big part of that. 

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“If they could do a short-term subsidy on the duty that would make a vast difference.”

However, the government has rejected this view, suggesting that as energy prices rise, people cut back on other spending that would usually be subject to VAT.

As such, they said there is no ‘windfall’ in terms of revenue.

A government spokesperson said: “Millions of motorists filled up their cars and travelled over the Easter weekend.

“Our fuel system is robust and continues to work well.”