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Dear Tánaiste

The Irish Petrol Retailers Association (IPRA) is the trade association for independent petrol retailers in Ireland. The sector employs over 100,000 people and if you include family this represents over 250,000 people dependent on the industry. Many of our members are smaller retail sites, often the bedrock and only retail facility in some rural villages.

Firstly, we want to congratulate you on your appointment as Tánaiste and wish you well in that position.

Secondly, as you prepare your support package to help businesses navigate their way out of the pandemic, please be aware of the issues surrounding the revaluation of retail forecourts and the huge disparity in valuations between forecourts and large retail operators. I have attached our white paper clearly outlines the issue and demonstrates that retail sites are penalised for having fuel pumps outside their retail business. The independent service station operator has not been treated fairly and we would really appreciate your assistance in seeking a resolution to the current impasse.

Despite being open as an essential service during the pandemic, our members are reporting a reduction in fuel sales of up to 70%. The smaller independent retailer will not survive if Government does not tackle this inequality as a matter of urgency as our members’ are being asked for these revised rate payments now and are not in a position to pay them post Covid-19.

As well as including retail forecourts in any support plan (a rate exemption for one year would be our suggestion) can your office request from senior civil servants in the valuation office an explanation for their rationale in reducing the rateable valuation for most businesses in the country when these businesses were not even requesting reductions and then to clearly target 4 or 5 specific business sectors and impose extraordinary excessive increases of 300-400% on these sectors to try and make up the shortfall?

Dear Minister O’Brien

The Irish Petrol Retailers Association (IPRA) is the trade association for independent petrol retailers in Ireland. The sector employs over 100,000 people and if you include family this represents over 250,000 people dependent on the industry. Many of our members are smaller retail sites, often the bedrock and only retail facility in some rural villages.

Firstly, we want to congratulate you on your elevation to Minister for Housing and wish you well in that position.

Secondly, you are well aware of the issue surrounding the revaluation of retail forecourts and the huge disparity in valuations between forecourt and large retail operators. Basically, retail sites are penalised for having fuel pumps outside their retail offering. At our last meeting you indicated an understanding of our position and if I read the meeting correctly, you supported the retailers’ position.

When I read again your home page on the web it says, “Right at the centre of our life’s work is respect for all, sharing and spreading the wealth we create to all those who deserve it by right, treating people fairly, and giving maximum equal access to all who need services and due care, promoting the talent and potential of all for our greater good”.

The independent service station operator has not been treated fairly and we would really appreciate your assistance in seeking a resolution to the current impasse. The smaller independent retailer will not survive if Government does not tackle this inequality as a matter of urgency as our members’ are being asked for these revised rate payments now and are not in a position to pay them post Covid-19.

We should be grateful if you could meet a deputation of retailers virtually to discuss this matter urgently and seek a resolution that is fair for all parties.

Yours faithfully

Michael Griffin

Michael Griffin CEO

Irish Petrol Retailers Association

E: office@ipra.ie

Now that the much awaited Irish Programme for Government (PFG) document has been agreed it is more important than ever that we can put your views to elected Members and push the retailer agenda.

Please review the document and feedback your experiences on these topics. On the back of that information we can engage with the suppliers and government officials and make real change.

Send your information to office@ipra.ie or pick up the phone to Michael on 087 254 6512.

We really do need your views on these important issues and many thanks in advance.

Article from today’s Irish Times – see; https://www.irishtimes.com/life-and-style/motors/what-happens-to-filling-stations-when-we-re-all-electric-1.4270801

According to data released by the AA today, customers are paying substantially less for their road fuels at a level last seen in 2016. The AA’s most recent monthly study of fuel prices found that, on average, a litre of petrol now costs 126.5c, representing a reduction of over 15c compared to February’s average cost of 141.9c.

David Blevings, spokesperson for the Irish Petrol Retailers Association (IPRA) said, ““Oil prices are falling sharply on the back of decreasing demand and increasing stocks. With most countries introducing isolation tactics and closing non-essential businesses we are starting to see signs of distress in the oil market with oil stocks surging and demand falling sharply.

News media widely reported that oil prices were trading negatively and this referred to West Texas Crude futures due to expire today and the price reached an unprecedented minus $37.63 a barrel. Sellers were paying buyers to take oil because of an over supplied market as companies have run out of room to store it. In Europe prices are benchmarked on Brent Crude which is still trading at c. $20/barrel.

Some investment banks are speculating that oil could fall further in the short term due to the oversupply and if this does happen, we could see further reductions at the pump”, added David.

Looking to the longer term, most pundits are predicting that Crude will settle at $35-45/barrel following the recent agreement to reduce supply but with no sign of detailed plans to restart the world economy this number could be still some way off.

Some investment banks are speculating that oil could fall further in the short term due to the oversupply and if this does happen, we could see further reductions at the pump”, added David.

The trade body representing the forecourt sector, the Irish Petrol Retailers Association (IPRA) has today written to Ministers John Paul Phelan and Eoghan Murphy asking for forecourts to be included in any Council plan for rate relief.

David Blevings, spokesperson for the IPRA said, “Retail sites have been designated an essential service in the recent list of essential service providers published by Government. While our members are happy to serve the emergency services, HGV drivers, defence forces, and essential county council workers their turnover has reduced by c.70%. This is due to the obvious reduction in traffic volumes as people stay at home and consumers’ switch to buying only essential items.

Local forecourts will be the only shop in many Irish villages open for many customers and while our Members are pleased to remain open, they cannot be expected to pay rates at a time when their income has been drastically reduced. Of the 1,000 retail forecourt locations in the Republic, eighty percent are owned and operated by sole traders and family businesses.

Without rate relief at this critical time, many of these businesses will not survive and this will lead to closures. Any closures during this crisis will reduce fuel supply availability to front line workers and services and cripple rural Ireland. We have asked the Ministers to swiftly introduce a local authority rates relief package and to ensure the Irish forecourt sector is included in any plan to protect jobs and family businesses in rural Ireland”, added David.