Shetland islanders in call to set up their own FFS

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Fuel campaign group needed to ‘lead protest over prices’

March 10th, 2013 by 

A rallying call has been made for a fuel lobby group to be established which will stand up to high prices.

Owner of Tagon Stores, Scott Pres­ton, says the time is right for someone to lead a protest organis­ation similar to Fair Fuel Solutions in the Western Isles where fuel is supplied by the same company as Shetland and similar high costs are endured by islanders.

Mr Preston took a stand against high prices last year when he and his wife Phoebe slashed the prices charged at their pumps by 20 pence per litre for one day only. Now he has called on someone else to take up the mantle and battle against unfair pump prices.

His request comes as motorists continue to be charged around £1.50 for every litre of fuel amid concerns over Scottish Fuels’ domin­ant market position in the isles and the high tax levels imposed by the UK government.

Mr Preston says businesses are suffering as a result of the ever rising costs. And he maintains people here have much to learn from their counterparts in Lewis.

“Us Shetland folk moan about it until the cows come home. But we don’t do anything about it,” he said.

“The approach that Fair Fuels Solutions has taken is just right. They don’t go in there with all guns blazing. They just go and state the facts. They look at all things, they investigate things.

“If we had somebody that would stand up and say, I’ll do what Callum [Ian MacMillan] has done over in the Western Isles … I’ll hold regular meetings and make sure that we do discuss things together. That one person … could make a difference.”

Whoever takes up the cause is likely to face a difficult task in forcing through changes.

Mr Preston pointed to wholesale figures which showed his business had to pay 10 pence more now for petrol than it did at Christmas time, and over four pence more for diesel since last month.

That, he says, makes little sense given the time of year.

“If you look at the pattern of fuel … in the winter months the price goes up. Now, why would the price go up in the winter when people are surely buying more?

“If we’re buying more in bulk, then surely the price should be going down, because we’re buying more so you get bigger discounts. And why does it drop in the summer?”

Mr Preston said the fault did not just lie with the main fuel suppliers to the isles.He pointed to the UK government being one of the worst in Europe when it comes to fuel duty.

“What we have to bear in mind is that we should not go on an all-out attack on Scottish Fuels. If you take the duty off, we’ve actually got the cheapest fuel.”

He pointed to recent findings which showed that, if the government dropped the tax on fuel, the rate at which people would buy petrol or diesel would increase, thereby giving the government the necessary cover for the drop they would make.

Mr Preston said isles MP Alistair Carmichael, the deputy chief whip in the coalition government, needed to put the isles first.

“He’s not a representative of the government. He represents the people of Orkney and Shetland.”

Much of the attention over fuel has focused on the latest investigation by the Office of Fair Trading, and its investigation into the level of competition in the Western Isles.

Many have insisted the probe should include the Northern Isles as well.

But an OFT spokesman said the investigation depended on evidence coming forward.

“This is a formal investigation, it’s not a general enquiry. Unlike in a general enquiry we can only look at specifics where we have evidence, and the evidence in this case specifically relates to the Western Isles. That’s why the focus in this case is on the Western Isles.

“Investigations have to be determined by the evidence we have. If there was compelling evidence which suggested a possible breach of the law in Shetland we’d obviously consider that.”

He added the authority was in the “initial stages” of an investigation and will make a decision on whether or not to proceed with a full investigation next month.

But Mr Preston highlighted last year’s visit to the isles by GB Oils’ boss Sam Chambers, in which many locals felt he failed to adequately explain his profit margins and costs to councillors during a visit to the isles.

Mr Chambers had struggled to persuade people why motorists here were paying more than their mainland counterparts. In particular, drivers were concerned that around six pence per litre had been left unaccounted for in Mr Chambers’ figures.

Mr Preston described the OFT’s stance as “an absolute farce”.

“There is something to investigate here,” he added. “I’d love to see them come and have a look, but I very much doubt it will involve any real investigation.

“It will involve a call for people to put evidence in. And that’s it.”

Last year heavy criticism was levelled at the OFT over a separate investigation into fuel prices, in which it opted not to point the finger of blame at suppliers to Shetland and other isolated areas.

Fuel rip-off resumes as Scottish Fuels and Highland Fuels sneakily conspire to push up prices again

UPDATED -  Something stinks. Despite the Scottish Fuels-supporting troll claiming this and that, there has been no general price increase at independent stations on the mainland this week.  Kessock is still 134.9p for unleaded. The hike is only in the Western Isles. We were down to 1p more expensive than Kessock  - now we are 8p more expensive. Blatant profiteering by Scottish Fuels and Highland Fuels – because they can and they know that the people with the power to do something about it are just not bothered.

Hey, comhairle’s Fuel Action Group – how about some action?

Hey, Angus Macneil – how about some action?

Hey,  Alasdair Allan – how about some action?

No, I thought not. Nobody cares.

UPDATED – Another 4p on unleaded in Stornoway this week. Now 142.9p . That’s 8p up on Christmas time. No outcry yet? Fine.

The islands are now facing increasing fuel prices again after a period of stability and sense when some of our wise retailers told Scottish Fuels what to do with their illegal five-year contracts.

Sadly, it was a temporary dip just to make us gullible people in the islands with heather in our ears  feel something positive had happened. The crooks who distribute the stuff have taken a breath, shaken themselves down and are at it again.

Sources in the industry tell me that it is now very obvious that Scottish Fuels and smaller player Highland Fuels are, once again, working hand in glove to push up island pump prices. They are pushing up prices almost every week but the same trend is not happening on the mainland. The figures are there for all to see.

We had the same prices as the Highlands for a while there which is undoubtedly how it should be. Although the distance is greater to get it here, bulk sea tanker is by far the cheapest way to transport the stuff around the country. We should be cheaper.

It is now 138.9p (correction 142.9) in Stornoway, which is 4p (correction 8p) more than it was six weeks ago. 8p. Waiting for confirmation of Inverness and Glasgow prices.

Check the facts. The 4p per litre price hike since December to mid-February has just not happened on the other side of the water. That shows it is a rip-off. And a quick check shows that “brave competitor” Highland Fuels is matching every Scottish Fuels price hike with another of its own. Coincidence or proof that they too are at it? I am sure they will now write and tell me the facts as they see them.

So what is being done about it?

Good job we have the council’s wonderfully-efficient highly-paid elected councillors on the curiously-named Fuel Action Group monitoring what is happening every day, alerting us immediately to what the crooks in Inverness and Bayble, sorry Warrington, are up to and fighting hard in the interests of all islanders.

Good job the brave souls at the Office of Fair Trading are investigating this.  Even though their latest inquiry has no terms of reference, has failed to call for evidence and may be scrapped in April, according to their own letter last week, we can all rest assured that the growing number of whispers and mounting suspicion that there is deep-rooted corruption and wickedness staining the very souls of the big players in this sad story are all completely without foundation.

Isles MP on the rack over many “cosy private chats” with Irish fuel pirates

Fair Fuel Solutions

Press Release
17 February 2013

ISLES MP ACCUSED OVER PRIVATE COSY CHATS WITH PROFITEERING OIL GIANT

An island fuel campaign group has hit out at what it says is an unhealthily cosy relationship between the Office of Fair Trading, fuel distributor GB Oils and the MP for the Western Isles.

It follows a recent meeting, organised by the Scottish Office, in which the Irish-owned fuel distributor, which uses the name Scottish Fuels in Scotland, and the OFT were given the opportunity to make presentations but no representatives of island consumers were invited and the sole retailer asked was given such little notice that he could not attend.

After that Glasgow meeting, Angus Macneil MP publicly called for a higher cut in fuel tax in the islands which, according ot the campaigners, was just a move to hand even more taxpayers’ cash to the fuel company, which they accused of not passing on the first 5% tax cut introduced last March.

Campaign group Fair Fuel Solutions (FFS) has written to the OFT and Angus Macneil MP expressing significant concerns about an ongoing investigation, the fourth in two years, into fuel distribution in the islands.

Shock as broken regulator OFT admits it has failed to draw up terms of reference for its so-called investigation

FFS claims it has discovered the latest OFT probe lacks focus and will achieve nothing as it has no terms of reference, has not invited evidence and is to reviewed soon and may be simply shut down.

A spokesman for FFS asked how can there be an inquiry without any clarity on the subject or objectives.

He said: “The response from the OFT is unacceptable given that they announced the latest enquiry in December yet they now state that they may close it without taking any further evidence. This is simply not good enough.
“Why is a regulator grabbing headlines by announcing they are carrying out a further inquiry and then a few weeks later, after taking part in a private meeting with just two fuel distributors and MPs but no retailers or representatives of fuel consumers, say they might not bother carrying out any forensic audit of the fuel distribution chain which the people of these islands have been crying out for.”

Gordon Maclennan, of Gordon Diesel Services Ltd based at Back near Stornoway, which broke away from the controversial tie-in contract imposed by GB Oils, resulting in much lower island prices, has confirmed he was given so little notice of the private meeting in Glasgow that it was impossible for him to attend.

The FFS spokesman said: “This is not the first time that GB Oils has been given the opportunity to put their own case without argument to elected representatives while island consumers have been excluded. That is very worrying.
“In September 2011, Angus Macneil convened another private meeting where GB Oils was given an exclusive opportunity to make a presentation to an invited audience including local councillors but which excluded local consumers and members of the public. That resulted in outrage in the community with a fuel petition signed by over 1,600 people being signed in four days. It also resulted in the local campaign being initiated.”

“Why is Angus Macneil wanting GB Oils – with its awful track record of profiteering – to be handed even more of our cash?”

The campaigners believe there is “something seriously wrong” about the MP demanding a 7.5p a litre fuel tax cut now. The spokesman said: “The MP, who had many private meetings with that company, knows that GB Oils did not pass on that tax cut to motorists. This stinks. We have the figures. GB Oils bumped up the price by 4p a litre just days after the 5p tax cut came in on March 1 last year.
“Why is Angus Macneil wanting GB Oils – with its awful track record of profiteering – to be handed even more of our cash?
“The indisputable fact is that our MP has an unhealthily cosy relationship with GB Oils, and he has admitted they have had many private meetings together. Mr Macneil now has serious questions to answer.”

FFS has asked the MP to hand over minutes and action points from all his meetings with GB Oils but has had no reply.

end

When Sister Mary ran out of petrol

Sister Mary Ann, who worked for a care agency, was out making her rounds visiting housebound patients when she ran out of petrol. As luck would have it, a filling station was just a hundred yards away.

She walked there to borrow a fuel can and buy some petrol. The attendant told her that the only fuel can they had there had been loaned out but she could wait until it was returned. Since Sister Mary Ann was on the way to see a patient, she decided not to wait and walked back to her car.

She looked for something in her car that she could fill with petrol and spotted the bedpan she was taking to the patient. Always resourceful, Sister Mary Ann carried the bedpan to the filling station, filled it with petrol and carried the full bedpan back to her car.

As she was pouring the petrol into her tank, two Free Presbyterian ministers watched from across the road. One of them turned to the other and said: “If that car starts, I’m turning Catholic.”

What have elected representatives done to help lower isles fuel prices?

What have elected representatives done to lower isles fuel prices? from Maciver Media on Vimeo.
As the OFT announces a formal investigation into claims of skullduggery in local fuel distribution, Callum Ian Macmillan shares his thoughts on who has helped take the campaign this far.

Sweeteners and brown envelopes – OFT to investigate the shady world of Western Isles fuel dstribution

An investigation announced today (FRI) by the Office of Fair Trading will look at claims of sweeteners and secret rebates paid to filling stations in the Western Isles by the main distributor.

The investigation, being carried out under Chapter II of the Competition Act 1998, was prompted by many complaints of what is termed “suspected exclusionary abuse of a dominant position in the relevant market”.

The OFT confirmed its probe concerns the contractual arrangements for wholesale supply of road fuels in the Western Isles offered by GB Oils, parent company of Scottish Fuels (or other group companies).

In particular, it mentions, the allegedly secret rebates paid to filling station customers in the Western Isles and any other payments that may have been made to keep them from using other distributors.

The OFT stressed: “The current investigation does not relate to excessive pricing and has not been prompted by the OFT’s previous review of pricing, Petrol and Diesel Pricing in the Scottish Islands. This case is at an early stage and no assumption should be made that there has been an infringement of competition law.”

Pump prices drop as two brave Stornoway filling station bosses finally rip up Scottish Fuels contracts

UPDATE - Two Stornoway filling stations have decided to stand up to Scottish Fuels. They have told Tony Stewart to get knotted and that they can manage without his sweeteners – and his threats. We salute them. They have, of course, both now been able to drop their prices with immediate effect.

UNLEADED
Manor Service Station                     134.9
Sandwick Road Filling Station        134.9
Campbells Service Station           Not listed

DIESEL
Sandwick Road Filling Station        141.9
Manor Service Station                     142.9
Campbells Service Station               145.9

Petrolprices.com updated on 11 December

Treasury confirms that Fair Fuel Solutions information was used by Chancellor for the Autumn Statement

Fuel price campaigners in the Western Isles were amazed to discover that a plea they made to Chancellor George Osborne urging him not to increase fuel duty in his Autumn Statement last week was considered as evidence before he did a u-turn and axed the price hike.

FFS - contributors to government policy

FFS – contributors to government policy

 A personal letter of thanks has now been sent by the Economic Secretary at the Treasury to the volunteers of Fair Fuel Solutions (FFS), the Stornoway-based campaigners, for putting forward the case to retain fuel duty at the current rate.
In it, Sajid Javid, the MP for Bromsgrove who was recently appointed Economic Secretary at the Treasury, confirmed that the islanders’ plea was used in the decision-making process for the Chancellor’s policy review.
The campaigners had told him back in November that their campaign had focused on profiteering in the supply chain and that persistent highlighting of inconsistencies had led to an Office of Fair Trading survey and that there had been substantial cuts in pump prices as a result of healthy competition prompted by island fuel retailer Gordon Maclennan who had bravely parted company with the dominant distributor.

Letter from the Treasury

Letter from the Treasury

It continued: “While our campaign has been successful, albeit in the short-term as we have yet to see whether the OFT will provide adequate safeguards for the future, the gains we have made will be partially negated by your government’s proposed fuel duty increase scheduled for January 1.”

The campaigners urged Mr Osborne to listen to other MPs’ representations, and those from many other parties, because islanders simply could not afford it. At a time when inflation was forecast by the Bank of England to continue to increase and disposable income was already under severe pressure, they stressed that they could not cope with a further increase without cutting back on what is a necessity in remote island communities i.e. fuel.

“Any increase at this time would be punitive for the poorest in the country as we have among the lowest average incomes in the country and also the highest levels of fuel poverty. The impact on islanders would be disproportionately serious. Only by not implementing the increase can you ensure that the weakest in the country are not punished in a disproportionate manner for using a resource that is an absolute necessity, particularly in remoter communities such as ours.”

While they do not want to claim the credit for stopping a UK-wide increase in fuel prices, FFS spokesman Callum Ian Macmillan said he and his fellow campaigners were amazed at the personal response from the Treasury as they had expected one sentence saying their comments had been noted.
He said: “We had already been in touch with a colleague of Mr Osborne and Mr Javid. That was Danny Alexander, who is Chief Secretary to the Treasury, and he is well aware of the work we are doing here to expose the profiteering by big companies and their supporters.
“We have since been in touch with the Treasury as it is vital we keep the Chancellor and his colleagues fully informed of developments as there is some doubt about the willingness of the Office of Fair Trading to mount a forensic investigation into what has been happening here.”

VICTORY FOR CAMPAIGN TO SCRAP FUEL DUTY RISE – SNP

VICTORY FOR CAMPAIGN TO SCRAP FUEL DUTY RISE
SNP STATEMENT

The announcement that a planned 3p rise in fuel duty is set to be scrapped has been described today as the ‘culmination of a hard fought campaign’.

The SNP has been at the forefront of calls to scrap the rise in fuel duty that had been planned, highlighting the enormous damage it does to households and businesses. Had the rise gone ahead as planned, it would have represented a £130 million tax rise for Scottish households and businesses and put around 4,000 jobs at risk.

Working with FairFuel UK, the SNP has repeatedly attracted cross-party support for its efforts to win a fairer deal on fuel duties for households and businesses.

Commenting, SNP Westminster Transport Spokesperson and MP for Na h-Eileanan an Iar Angus MacNeil MP said: “The scrapping of this planned tax hike is positive news and is the culmination of a hard fought campaign which has won support from a variety of different sectors.
“Sky high fuel prices affect every single one of us, driving up the cost of motoring and the price of everything we buy in our day to day lives.

“In Scotland’s many rural communities high fuel prices have a particularly heavy impact as prices are usually both even higher than urban areas and are unavoidable for households who simply do not have the option of using more public transport.
“That is why we have campaigned heavily for a fairer deal on fuel prices and why it is a relief that on this matter at least, the Chancellor has heeded our calls.
“The last thing that people needed was a fresh hike to fuel duty, so I am sure that people across Scotland will be delighted that our campaign has been successful.”

Chancellor’s unexpected fuel duty u-turn had been asked for by isles fuel campaigners

FAIR FUEL SOLUTIONS CAMPAIGN

5 December 2012

FFS welcomes Chancellor’s u-turn on 3p fuel duty hike

The Fair Fuel Solutions campaign in the Scottish islands today (Wed) welcomed Chancellor George Osborne’s U-turn on fuel duty. The chancellor responded to a sustained lobbying campaign by FFS, other fuel campaign groups and MPs from all sides to ditch his proposed tax hike of more than 3p per litre.

FFS spokesman Callum Ian Macmillan said: “We are glad that the Chancellor has responded to the submissions from FFS and other fuel groups on this issue.

“We now trust that the government will instruct its competition authorities to take the appropriate action following the latest OFT enquiry into profiteering in the fuel chain to our islands by implementing adequate safeguards to ensure that the reductions in fuel prices which our campaign has achieved are retained and that the government also impose appropriate penalties on those who have held our islands to ransom for too long.”

In a separate development FFS has urged islanders to support the revamped Outer Hebrides Commerce group in its fight with the Scottish Government to retain Road Equivalent Tariff (RET) relief on ferry prices and urged islanders to stand together for fair ferry prices by lobbying their elected representatives.

END

Letter to Chancellor attached

FAIR FUEL SOLUTIONS

15 November 2012

Rt Hon George Osborne MP
Chancellor of the Exchequer
HM Treasury
Horse Guards Road
London SW1A 2HQ

Dear Chancellor of the Exchequer

AUTUMN STATEMENT – FUEL

I write on behalf of the Fair Fuel Solutions campaign in the Scottish Islands. We are a community group set up with the sole aim of achieving fair fuel solutions for islanders.

Our initial focus has been on profiteering in the supply chain and our campaign has led to an Office of Fair Trading survey and to recent substantial cuts in pump prices as a result of pressure brought on by Fair Fuel Solutions, a brave fuel retailer who parted company with the dominant distributor and the many local people who have supported the campaign.

While our campaign has been successful, albeit in the short-term as we have yet to see whether the OFT will provide adequate safeguards for the future, the gains we have made will be partially negated by your government’s proposed fuel duty increase scheduled for January 1.

We note from the press comments by Conservative backbenchers that you are reconsidering this increase. We would urge you to listen to their representations, and those from many other parties, because we simply cannot afford it. At a time when inflation is forecast by the Bank of England to continue to increase and disposable income is already under severe pressure the people of our islands could not cope with a further increase without cutting back on what is a necessity in remote island communities i.e. fuel.

Any increase at this time would be punitive for the poorest in the country as we have among the lowest average incomes in the country and also the highest levels of fuel poverty. The impact on islanders would be disproportionately serious.

On this basis and the fact that a tax increase will probably not generate any more in income to the Treasury, due to the inevitable consequent reduction in car use, the Fair Fuel Solutions campaign strongly urges you not to proceed with the duty increase in January on the basis of fairness to all citizens. Only by not implementing the increase can you ensure that the weakest in the country are not punished in a disproportionate manner for using a resource that is an absolute necessity, particularly in remoter communities such as ours.

Yours faithfully

Callum Ian Macmillan