Rescue fund aims to save rural petrol stations
A SHARE of a £6 million fund is being offered to communities to buy out their struggling local petrol stations – but a local MSP wants more research done before the idea is taken up.
Rob Gibson thinks the Scottish government’s idea is a good one but wants surveys of communities’ petrol-buying habits done before people take up the offer.
Energy Minister Fergus Ewing has offered communities with a population of less than 10,000 the chance of a grant from the £6m Scottish Land Fund to let them take over their local petrol station.
The number of petrol stations across Scotland has dropped by 24 per cent in the last decade and half of the current petrol pumps in the north could close by 2019 leading to a dramatic decrease in the availability of fuel in rural areas.
Four years ago there were 231 petrol stations across the Highlands, Islands, Moray and Argyll but studies have shown 114 are at risk of closing within the next 10 years.
Mr Gibson said: "I think first of all we have to decide what the actual demand is for diesel and petrol. The grants are a good idea but, for example, the Highland Council area committee could do a survey for us to show buying habits.
"We know Tesco has a handle on a large part of the market and we need to understand why people use local petrol stations less or use Tesco more.
"For example, in Scourie I stopped to look at the petrol prices there and they are horrendous. I talked to a butcher in Bonar Bridge who has excellent beef but local people are going to Tesco in Tain and buying meat there because they go for their petrol down there too because it’s cheaper.
"It strikes me as being a given that people will go to the places that are cheaper.
"They’ll go as far as Inverness and fill up."
Concerns raised by local petrol station owners are mainly the profitability of sites with many saying they are already operating at the edge of viability which was made worse by the cost of investment needed to comply with environmental legislation.
Mr Gibson said: "I remember the by-election in 2011 in Wick and the First Minister came up and visited a petrol station which was closing because they weren’t getting enough business after their costs.
"There are people that have closed recently for many reasons. We need to dig into the reasons before we do anything else."
There have been suggestions made to improve the profitability of rural petrol stations including that measures need to be taken to lead to an increase in the volume of fuel sold, an increase in profit margins and a reduction in operating costs.
Mr Gibson said: "There have been a few buy-outs of things like lighthouses and the land around them. I think people might take up the idea.
"The aim of the Community Empowerment Bill is to encourage people to take over assets in their communities that become available.
"One of our problems is the price system which central government allows to disadvantage us and it costs us a huge amount. Despite investigations, we still haven’t had any change in the way the Government looks at the disadvantages we have.
"They managed to take five pence off the price of petrol in the islands but have not done it on the mainland. Prices have actually gone up recently by five pence."