Allegation of diesel profiteering

Published: Friday, 06 September 2013

HERE is a response to the allegations of ABC Profiteering (Diesel profiteering?) by the Managing Director of ABC Leisure Group Edward Helps.

I make no excuse for making a profit, that is how businesses stay in business and can invest. However, I do object to the email allegation from one of our moorers that we are overcharging but omitting to provide all of the facts.

More expensive

We made a decision to only stock Fame Free Fuel (fuel with no Bio content) to help prevent the spread of the diesel bug in both our own boats and our customers, unfortunately this is more expensive to buy in than standard gas oil or road fuel.

We have a margin we need to make to make it worthwhile stocking and vending fuel which is just added to our purchase price of fuel but also mindful of local competition price for the same Fame Free Fuel. The price we can buy it in at varies considerably both geography, size of delivery (the amount we can take or our fuel tank sizes), and by the size of tanker that is able to deliver fuel to our sites (Accessibility).

Based on purchase price

Based on current purchase prices there is a 10p per litre difference between the purchases price at our cheapest base to the most expensive and this has to be reflected in the selling price. The purchase prices on the Llangollen are among our most expensive but again even though they are not far apart these are not all the same.

Anderton is currently our cheapest with a selling price of 90p per litre for domestic fuel (no fuel has zero duty) which is passed onto our customers. We also give all of our moorers the benefit of a 10% discount off everything we sell which includes gas and diesel. Our hire boats are not forced to buy from us although we clearly prefer them to because we can guarantee the quality of the fuel.