Forecourt freedom

We catch up with Susan Hancock, chief executive, Federation of Petroleum Suppliers

What are your main concerns as an organisation?

The Federation of Petroleum Suppliers Ltd (FPS) is the trade association for the independent forecourts in the UK and for the oil distribution industry in the UK and the Republic of Ireland.
    
Our main concerns as an organisation are helping our members to survive in the current economic climate and trying to ensure that incoming legislation, both national and European, treats the industry fairly.

What are the key issues affecting your industry at this time?

The position of independent forecourts has become increasingly precarious in recent years. They are under considerable pressure, which has led many of them to close – there are now fewer forecourts in the UK than there were in 1913!
    
A major cause of the closures has been the entry of the supermarkets into the forecourt sector. This led to ‘two tier pricing’, ie lower pump prices at major oil companies’ and supermarket forecourts as they compete against each other (they can do this by cross-subsidising fuel prices from their other sectors) than the wholesale prices paid by distributors who supply the independent sector. Consumers, and recently some government ministers and even the Prime Minister, have failed to recognise this despite our association’s best efforts to publicise the difficulties under which our members operate.
    
Independent forecourts mostly have lower volume throughput than those of the supermarkets’ and major oil companies’ forecourts. In a falling market, having bought at a higher price, they can’t afford to lower prices until they buy in stock at a lower price. They aren’t in a position to cross-subsidise their fuel prices from other activities, and so receive a lot of flack over their higher prices.
    
In our Distributor Division, the increase in duty on both road fuels and rebated fuels is a major cause of concern. Credit insurance is becoming more and more expensive and getting cover for customers in some sectors, such as haulage, nigh impossible. For this reason, the FPS has been lobbying both the UK and Irish governments and the EU parliament for reimbursement of duty on bad debts, the same way that VAT on bad debts is reclaimable. This would make credit insurance more affordable and ensure that the haulage industry can continue to get fuel.

How do you assist your members?

The FPS’s work is aimed at helping independent forecourts to survive, through lobbying government on their behalf, encouraging best practice, efficiency and diversification and setting up group buying schemes.
    
We support our distributor members in a similar way. We are registered as a Driver CPC training provider to offer members training tailored to the industry rather than the generic courses available elsewhere.
    
FPS lobbies national and devolved administrations on behalf of its members, and also the EU in conjunction with our European counterparts, through our membership of the European Conference of Fuel Distributors.
    
FPS provides its Distribution Division members with best practice guides, training programmes and seminars. We also hold regional meetings that enable members to get together to discuss common problems and topical issues affecting the industry. Members receive a monthly newsletter, updating them on new legislation and other news. We also publish a magazine, Downstream, which they receive free of charge as a benefit of membership.
    
Similarly, our Forecourt Division members receive a monthly newsletter and our online magazine Independent Forecourt & Convenience Store Retailing. We have a distance learning forecourt training programme to help owners/managers fulfil their legal obligations to train staff at minimal cost and disruption. The programme is fully accredited by IOSH, the Institution of Occupational Safety and Health.

How do you work with government?

FPS is a member of a number of panels and working groups of government departments and agencies. We work in particular with the Dept of Energy and Climate Change, DEFRA and the Dept for Transport as well as HSE, HMRC and the Environment Agency.
    
FPS informs public policy through responses to government consultations, meetings with ministers and civil servants and provision of information and statistics in support of our industry.

How would you say your organisation is perceived within your industry?

Because the distribution sector is, in terms of the number of businesses, a relatively small industry, we know the vast majority of our members personally. This and some of the successes we have had in supporting the industry in relation to legislation and its implementation makes us well regarded and able to keep in touch with members’ needs.
    
The independent forecourt sector is rather bigger, but personal contact with members again keeps us in touch and enables us to be effective in the support we give.