Retailers warn of fuel supply crisis

A FUEL supply crisis looms along the western seaboard, a retailers’ association warned yesterday as service stations, countrywide, battle to contain prices.

Most of the major fuel suppliers have recommended forecourt prices of up to €1.21 per litre for unleaded petrol and €1.17 per litre for diesel but forecourt businesses are resisting the proposals.

Below-cost selling by supermarkets such as Tesco is also forcing smaller retailers to hold prices at between 14 cent 16 cent below the recommended price.

Chief executive of the Irish Petrol Retailers Association Oliver Lupton said yesterday that independent retailers are struggling on a profit margin of 2%-3%.

"Smaller retailers are carrying the burden in this country of keeping fuel costs down," said Mr Lupton.

The number of petrol retailers, he revealed, fell from 2,300 to 1,700 over the past three to five years.

Mr Lupton accused the Government of a dereliction of its responsibility towards protecting an essential industry by allowing unfair competition as independent retailers combat the threat of multinationals.

"Obviously, the Government has no incentive in protecting petrol retailers. As the prices go up at the forecourt, there's more revenue flowing in for the exchequer," he said.