Mike Waters’ blog: 28 September 2007

Endangered petrol stations make fuel management a priority

The Daily Telegraph carried a front page recently highlighting some well-known UK species that are dwindling to the point of concern. The house sparrow, the starling and the cuckoo are new recruits on the official list of declining and threatened species requiring conservation action to reverse their decline.

It struck something of a chord with me and got me thinking about the endangered species in the motoring world. Rear-view-mirror air fresheners, retractable aerials and bumper stickers were all there, but top of my endangered list was the common-or-garden petrol station. When once they could be found nestling on every street corner and in every neighbourhood, now you can drive for miles without seeing so much as single pump. Petrol stations are being levelled and turned into luxury apartments at such a rate that I wonder how we can possibly be facing a housing shortage.

According to oil industry body, Catalist, there are now less than 9500 forecourts in the UK. This is the lowest number of filling stations in the UK since 1912.

At a time when business drivers are being asked to consider how they can reduce their mileage and the related CO2 emissions from vehicles, the closure of forecourts could actually lead to an increase in mileage as they search for a place to fill up. A further problem could be the increase in costs for companies as their employees are forced to buy fuel at more expensive outlets, simply through lack of choice.

There seems to be little reason to expect the current trend to reverse – the location of fuel stations has changed significantly over the last decade with fuel stations now located at super markets or on major arteries. If the fuel stations are not likely to change, then our buying habits must.

In the face of the dwindling numbers of filling stations, the answer for businesses is to take greater control of their fuel purchase. This could see much wider adoption of fuel cards to track costs and understand consumption – cards remain the best method for collating detailed information on fuel use. Fuel cards also provide businesses with the means to track their fleet CO2 emissions.

With forecourt numbers now at an all time low, choosing the right fuel card will also be important. Fuel cards offering multiple network coverage will likely be a much more cost-effective strategy as these offer the flexibility of filling up at supermarkets as well as oil majors. A fuel card offering the choice of only one company will, by its very nature, provider fewer forecourt options.

So what does all this mean for your average business driver? Well expect your company to start taking a much stronger interest in where you’re buying fuel and the price you’re paying for it. And if you’re not yet using a fuel card, you could find one working its way into your wallet before very long.

See you next week,

Mike