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The view put forward today by Roger Olver in narrowboatworld as to the reason for the closure of red diesel outlets only offers one aspect. Could I offer a few more?
Firstly the reduction in boat numbers has been a factor. In many rural areas where the marinas and boatyards tend to be, the potential customer base for red diesel is a shrinking commodity.
The regular increase on insurance costs by having above ground storage which most of us have, is a definite factor.
The time consuming additional accounting that has come about by having two different VAT rates and additional collection and accounting of fuel duty (with payment in November annually) is a great hassel.
Chasing every boat when diesel is purchased to get reg. number, name, address and declaration signature is an absolute pain (especially when declaration form gets soaked by rain!)
The very low profit margin, cut to the quick as modern communications ability allows boaters to get instant price comparisons forcing all retailers to compete for the shrinking customer base.
As a small independent boatyard, on the edge of Wolverhampton, we are seriously considering getting out of the diesel retail business.
Orph
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