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Goran Raven, who runs a petrol station in Romford that has been in his family for four generations, is facing one of the toughest periods in his business’s history. On a busy Friday afternoon, while customers continuously pull in to refuel, Raven expresses frustration rather than satisfaction. The recent surge in oil prices, triggered by the conflict in the Middle East two weeks ago, has pushed petrol prices to their highest in 18 months and diesel prices to rises unseen in over two years, according to data from the RAC. This has translated into significant challenges not only in pricing but also in dealing with increasingly upset customers.
Unlike large petrol retailers and supermarkets that often secure fuel in advance and at a discount due to bulk buying, smaller independent stations like Raven’s face daily spot prices. This means they purchase fuel at the prevailing market rate on the day of delivery, making them highly vulnerable to sudden price spikes. Raven’s station holds just over a day’s supply, with deliveries occurring in the morning and prices quoted after the tanks are filled. “Whatever that price is, we have to pay it. We’ve got no bargaining power,” he says, often facing unexpected large increases in fuel costs from one day to the next.
These sudden cost increases place incredible pressure on Raven’s family business, which operates on very tight profit margins. The challenge is compounded by hostile interactions from some customers reacting to rising prices. To mitigate this, Raven has tried to maintain transparency by explaining the reasons behind price hikes directly to drivers and via social media. Nonetheless, some customers respond with hostility, and actual fuel thefts on the forecourt have increased, adding further strain on Raven and his staff.
The Petrol Retailers Association (PRA), representing businesses like Raven’s, has criticized government rhetoric surrounding the crisis, suggesting that inflammatory language might fuel antagonistic behavior toward petrol station workers. Energy Secretary Ed Miliband has warned about price gouging and pledged to intervene if consumers are unfairly charged, but the PRA insists this is not currently occurring and points out that some members are even losing money on sharply rising diesel prices. Meanwhile, the Competition and Markets Authority has previously highlighted a lack of transparency and competition within the sector and plans to continue monitoring prices closely, with a report expected in April. To support competition, a new fuel finder app now covers over 90% of retailers, helping consumers locate better prices. Raven himself emphasizes that his business is operating on roughly a 4% profit margin and hopes that once the situation in the Middle East stabilizes, any savings will be promptly passed on to customers
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