Industry Analysis
Fuel distribution industry
responds to Covid-19
Much of the country is in lockdown, but the UK
government has classed fuel and oil distribution
as a key service that needs to continue.
With the importance of social distancing
now playing a crucial role, fuel oil distributors
are taking measures to ensure that distribution
can continue in the safest way possible.
Nick Goodwin, managing director of
Standard Fuel Oils, said; “The health and safety
of our customers, employees and business
partners remain our top priority and my
thoughts go out to everyone who has been
personally affected by this pandemic.
“It is difficult to assess what the
long-term impact to our industry
might be. Insolvencies are expected
to rise by 25-30%, so it is vitally
important to have a strong and
robust credit management system in
place.
“Oil prices are at record lows, and
in the short term it is difficult to see
them recovering whilst demand from
markets such as retail and aviation
remain suppressed. It is important to
have patience and to draw from our
past experiences. The economy and
the industry will recover and thrive
again I am sure.“
Operating but minimising contact
Following guidance from the UK and
Scottish governments and the World Health
Organisation as well as advice from industry
bodies such as UKIFDA, Gleaner, in Scotland,
has put steps in place to protect both
employees and customers.
These include not handing over hand-held
devices for customer signatures upon delivery
with drivers logging the account holder name
instead. Hand washing facilities are available
within stores with disposable gloves provided
for fuel pump operations and contactless
payments being promoted.
Berkshire-based Marsh Fuels announced
recently that although its offices are closed to
non-staff, it is still operating behind the scenes
with drivers continuing to make deliveries,
wearing their usual protective gear. The
company has asked customers to only greet
drivers from afar to adhere to social distancing
advice.
No need to panic buy High demand
With the initial surge in demand following
lockdown leading to increased delivery windows
many fuel distributors found themselves having
to deter potential panic buyers.
Star Multifuels in Wales, took to LinkedIn to
reassure customers that they should not place
orders in a panic with oil deliveries continuing
as normal. The company also announced
extended opening hours enabling customers to
order over a longer period. Craggs Energy Group is also continuing to
experience high demand across most areas
of the business. Ben Duckworth, director,
elaborated; “The commercial business has not
disappeared like we may have expected and
with the exception of the ‘non-emergency’
domestic tank installation the whole Craggs
Energy team remain very busy!”
Online distributors are also seeing
increased demand with Chris Bicknell,
managing director of HomeFuels Direct,
noting; “Sales for February and March
were significantly higher compared
to the previous year. The effect of
Saudi Arabia initiating a price war
with Russia was a fall in the price of
heating oil, causing an initial surge
of orders for February. Following that,
the impact of Covid-19 and a UK wide
lockdown triggered many households
to fill up on heating oil, leading to
increased delivery windows.
“Overall, we have found the
sector to be extremely resilient and
proactive in order to meet the high
demands expected from the heating
oil consumer market.”
Prioritising those with specific needs Trade bodies in full support
Carrie Marsh, owner of Marsh Fuels, is also
urging customers not to panic buy, stating that
deliveries will be made to existing customers as
well as new customers whose normal supplier
may have closed the door on new orders.
With oil in such high demand, Carrie says; “We
prioritise our more senior customers that we
know of in our village and anyone with specific
challenges.”
Even in such trying times, Carrie remains
positive; “Our company has seen two world
wars and got to this point, so I know our staff
will, as ever, pull together and get us through
this stage in history in the same way.”
Mark Nolan, managing director and owner
of Nolan Oils commented; “Our dedicated
team of drivers continue to deliver fuel whilst
following social distancing rules. We are lucky
in that we’ve been able to help customers who
have been let down by their original suppliers
or buying groups, who cannot deliver during
this time.” Chief executive of UKIFDA Guy Pulham praised
the hard work of members in meeting the
challenges and echoed the appeal to avoid
panic buying; “We would like to reassure
consumers of liquid fuel that as suppliers of
essential heating oil and transport fuels, our
UKIFDA full members are included in the key
worker definition.
“Their core staff continue to work very hard
in the face of unprecedented demand – there
really is no need for panic buying. It would be
in the interests of your local community for
consumers to follow this advice.”
David Blevings, spokesperson for NIOF
said, “During this challenging period oil
deliveries are continuing as normal. Oil
distributors and their employees are deemed
key workers and service is continuing as normal.
Due to the high demand consumers may
experience a short delay but rest assured, the
industry is working flat out to meet demand”.
Continued on page 9
Fuel Oil News | May 2020 7