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Insider UK
Insider UK
Business
Hamish Burns

Fuel stations will close in weeks as prices plunge and demand disappears

Fuel stations will close within weeks as the price of oil plunges and commuters work from home, the Petrol Retailers Association (PRA) has warned.

Fuel prices have had their biggest weekly fall since current records began in June 2003.

The average price of unleaded fell by 8p to £1.12 in a week and diesel by 4p to £1.19, The Price of Brent crude has been hit by plummeting demand due to coronavirus and the Russia-Saudi price war.

With millions of people all over Britain working from home indefinitely and being told not to make unnecessary trips, many motorists have no need to fill up their tanks.

That has left petrol stations struggling to stay in business, especially in rural areas.

The PRA, which represents independent fuel retailers who account for 70% of UK forecourts, said it will attempt to keep a "strategic network of petrol stations".

PRA chairman Brian Madderson said: "To help freight move and help key workers travel safely and independently through this period of crisis, petrol filling stations must remain open but this is proving to be a challenge.

"Fuel retailers are having to maintain pump prices at previous levels to avoid suffering significant stock losses."

The PRA said fuel consumption has fallen by more than 70% due to the pandemic.

Department for Business, Energy and Industrial Strategy (BEIS) figures show that three out of five petrol stations in Britain have full storage tanks.

A BEIS spokesman said: "The Government has robust contingency plans in place to ensure that fuel continues to be available to the public.

"Forecourt closures have so far been extremely limited but we are keeping the situation under close review and continue to engage with industry to monitor stock levels at forecourts across the UK."

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