South West: What no petrol?

Marcus Wraight
BBC South West Political Unit

More of the South West's beleaguered filling stations are facing closure thanks to a new European Directive aimed at reducing pollution from petrol fumes.

South West filling stations are facing closure

Carn Bosavern Garage at St Just in Penwith has just stopped selling petrol.

Owner Jonathan Ongaro says the cost of implementing the new regulations makes it impossible to continue.

He estimates it would cost tens of thousands of pounds to install the new underground reservoir and pipework to satisfy the Directive's demands.

"Such capital would never be justified," he said.

"I would never see a return on it. I would be selling petrol until I was 100 - and even then I'd be paying back loans."

Jonathan Ongaro says the cost of implementing the new regulations makes it impossible to continue

Mr Ongaro said the Directive is just the latest blow for small petrol stations which have spent the last few years struggling in a hostile market place.

"In 1991 I think we invested nearly £100,000 in redeveloping the forecourt with a new canopy, new pumps, a new floor, everything and then two years later the supermarkets opened up in Penzance.

"So within a period of two years after investing this money in our forecourt, sales dropped to almost negligible levels.

"If I had known that at the time I wouldn't have invested all that money - I'm still paying it off now."

Backs against the wall

Mr Ongaro's MP, St Ives Liberal Democrat Andrew George said independent petrol retailers in his constituency "had their backs against the wall".

"In the last five years especially they have been under particular pressure, especially as the supermarkets have moved into this area.

"They really want to clean up just as they've cleaned up in respect of the retail of food and everything else, frankly."

AA and the Petrol Retailers' Association advise small independents to diversify

Both the AA and the Independent Petrol Retailers' Association advise small independents to diversify and build other aspects of their business.

Although he's stopped selling petrol, Mr Ongaro still handles car sales and repairs and MOTs.

Across the Tamar, in Devon's South Hams, building up a successful Spar shop has enabled David Hollis to supplement dwindling fuel profits at his petrol station at California Cross.

"With the advent of hypermarkets and increased competition we have to look elsewhere for our profits," he said.

David Hollis supplements dwindling fuel profits

"With this in mind we've concentrated more on the shop which has become an integral part of our business.

"We hope we've got our sums right and our position right and I hope that we'll survive.

"I don't want to succeed at the cost of others, but it's a dog eat dog world no matter which business you're in, isn't it?"

Health concerns?

European Commission spokesman Henning Arp says leaking petrol fumes affect people with heart condition and asthma and damage plants.

Mr Arp said the Commission had looked at several ways of tackling the problem and had opted for the least costly.

It certainly looks as if the amount of petrol vapour escaping into the atmosphere will be reduced, not least because many filling stations won't be selling any petrol at all.

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