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Business

Ascona boss gives his views on rising petrol and diesel prices

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DARREN BRIGGS, the Managing Director of Ascona Group has today taken to social media to express his personal views to the recent rise in oil prices.

Darren founded Ascona Group in 2011 in Pembrokeshire. He began his career in the industry with roles at Elf Oil UK Limited and Total UK Limited, before founding BigOil.net in2004, which he sold to the PRA in 2008. He is probably the best person in Wales to ask about fuel prices.

My personal response and views to rising fuel prices

The heightened geo-political tensions resulting from Russia’s invasion of Ukraine, and the package of economic sanctions imposed by the West in response, mean that we are seeing unprecedented increases in prices for crude oil and of course refined petroleum products (petrol, diesel and the like).

Russia is the second biggest oil producer in the world and the third biggest producer in terms of refined products. Almost 20% of the UK’s diesel is imported from Russia*

The question I get asked a lot is “why the big difference of fuel pricing between your sites and the supermarkets?”

The honest answer is that, ultimately, we will always attempt to be as competitive as commercially possible and sometimes we will retail fuel at zero or very little profit margin to remain competitive in a particularly price sensitive area. The Pembroke Dock and Pembroke area is a prime example (with competition from both Asda and Tesco). Note – Asda is an unmanned site, therefore no staffing costs!

Unfortunately for an independent business like Ascona, the supermarkets have an unfair commercial advantage.

Having worked in this sector for over 25 years, (I now feel old!) here is my insider knowledge:

The supermarkets buy their petrol and diesel on a previous (up to) a 3 weekly ‘lag’. What does this mean?

In simple terms, the fuel they sell today is based on the cost price 3 weeks ago. So when the cost prices sky rocket (as they have in the last 2 weeks), the supermarkets are still buying fuel at a substantially lower price than independent fuel retailers.


So how do independent fuel retailers buy petrol and diesel?

Most fuel supply contracts in the independent market usually last for between 3 or 5 years, and are linked to the Platts commodity price assessment for North West Europe (refined products for petrol and diesel). These products are traded in $ per tonne and then converted into pence per litre using density factors and the exchange rate between sterling and the dollar. There are other elements such as bio fuels, ethanol and others, but let’s try and keep this as simple as possible!


Is there a big pricing lag for independent retailers?

Sadly, no! We do not enjoy a 3 weekly lag that supermarkets do. However, we do have the choice between a weekly lag or a previous day market on close price.
In a very volatile market (like now) the weekly lag offers some protection or comfort in a rapidly increasing market, but if any particular forecourt or business has a high volume of sales, this is short lived.
When prices are volatile and increasing on a daily basis, having fuel delivered from your supplying oil company based on a previous day market on close price means that it is extremely difficult to remain competitive. In fact, it is impossible. If you take the average of last weeks prices, petrol and diesel have risen by over 7 and 12 pence per litre respectively. A forecourt operating on a previous day price would have to pass on these huge cost increases immediately. Not doing so would be commercial suicide, but this leads to big price differences at the pole sign!
It should be noted that all Shell branded dealer sites across the UK operate on a previous day market on close price. I estimate over a third of dealers operate on a previous day market on close price.

Ultimately, ours is a very tough industry to be in. Forecourts have to rely on retail shop sales and other associated retail services to remain competitive and to make a net profit.

Taking into account the increases in energy costs and minimum wage increases this year, the average petrol forecourt in the UK costs over £20,000 a month to run. Fuel volumes are still around 90% of pre-covid levels and fuel margins remain between 5 and 9 pence per litre depending on price sensitivity of the local area, since Covid.

However, the fuel margins in the coming weeks will inevitably reduce as we try and remain as competitive as possible within the UK retail fuel market. There will be significant price differences in pole sign prices.

I will leave you with a final thought …

Whilst the mainstream media is bemoaning fuel retailers for increasing prices at the pole signs, international wholesale markets are in fact driving global change for reasons identified at the beginning of my post.

The UK, in fact, probably has cheapest petrol and diesel in Europe when you deduct motor fuel duty and VAT. But of course someone has to pay for furlough?

*source – Goldman Sachs strategic review February 2022.

Business

Loss-making Haverfordwest Airport has official new operators

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HAVERFORDWEST’S airport officially has a private operator, which has leased the previously loss-making council-owned facility, promising to “breathe new life into such an iconic gateway”.

Back in 2024, members of Pembrokeshire County Council’s Cabinet supported the leasing of the council-run Withybush Airport as part of plans to make the facility cost-neutral to the authority.

In 2023, Cabinet members heard the financial position at the council-supported Haverfordwest/Withybush airport deteriorated in 2022/23, with an out-turn position for 2022/23 of £238,000.

That loss was been reduced to an expected £119,000 for 2023/24 “following an extensive review of the operations of the airport”.

Cabinet members, back in 2024, heard there would be a requirement on leases to obtain/keep a CAA [Civil Aviation Authority] Cat II licence and at a market rent, which would “make the airport cost-neutral to the council from the day the lease is signed, whilst also ensuring that an operational airport remains for Pembrokeshire to benefit from”.

Deputy Leader Cllr Paul Miller at the time said: “The airport is a valuable facility and one I’m keen to maintain; I personally recognise that maintaining an ongoing public subsidy is not something we’re particularly keen to do indefinitely.”

He added: “What the lease, we believe, will do is maintain a franchising CAT II airport in Haverfordwest and remove our liability from day one.”

At the March 2025 meeting of Pembrokeshire County Council’s Services Overview and Scrutiny Committee, members heard the final paperwork was “on track” to hand the airport over to the new operators by the start of April, with the facility becoming “cost-neutral” to the authority “from the moment it’s handed over to the operator”.

On April 1, Haverfordwest Airport Limited took the lease on the airport, officially taking over its management from the council.

Haverfordwest Airport Limited has said: “We are absolutely thrilled to be a part of this exciting new chapter as the proud operators of Haverfordwest Airport.

“This is a remarkable opportunity for us to breathe new life into such an iconic gateway, and we are committed to enhancing the airport’s facilities and services for the benefit of the community, visitors, and businesses alike.

“We also recognise the importance of Haverfordwest Airport to the emergency services, and we are dedicated to continuing our support for their vital operations, 24/7, 365 days a year.

“We would like to acknowledge the hard work of Pembrokeshire County Council in getting us to this point, and we look forward to driving the airport’s growth, innovation, and connectivity in the years ahead.”

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Business

£20m investment to unlock Cardiff Airport’s potential and drive South Wales growth

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THE WELSH Government has confirmed the first phase of a major new investment package for Cardiff Airport, pledging £20 million to boost economic development and secure the long-term future of the site.

The funding marks the beginning of a ten-year programme designed to harness the airport’s capacity as a strategic asset for Wales. The scheme is expected to drive further growth across the South Wales region and create new opportunities in aviation, logistics, and employment.

Announcing the investment on Wednesday (Apr 2), Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans MS, said the Welsh Government had completed due diligence on the proposals, including a review by the Competition and Markets Authority.

Ms Evans said: “We remain committed to the growth of this essential economic infrastructure, which currently generates over £200 million in Gross Value Added (GVA) annually and supports thousands of jobs in the South Wales region.”

Plans under the investment include potential development of aircraft maintenance facilities, improved cargo handling capabilities, and support for general aviation. Some of the funding will also be used to explore new air routes, with an emphasis on improving connectivity and Wales’ presence in global markets.

The £20 million commitment follows a previous announcement in July 2024, where the Welsh Government outlined its ambition to make Cardiff Airport a catalyst for economic expansion in Wales. This latest funding, according to Ms Evans, will help the region realise that vision and support a “vibrant and outward-facing” national economy.

Officials will monitor the impact of the funding throughout the ten-year period, with performance reviews planned and a focus on minimising subsidies while delivering value for money.

A record of the financial award will be published on the UK subsidy transparency database.

However, the decision has sparked criticism from the Welsh Conservatives, who renewed their call for the airport to be sold to the private sector.

Welsh Conservative Shadow Cabinet Secretary for Transport and Infrastructure, Peter Fox MS, said: “The Labour Government’s decision to inject the first £20 million of a planned £200 million into Cardiff Airport will bring the total amount of Welsh taxpayer money invested to over £200 million.

“Cardiff Airport is a financial burden on the Labour Welsh Government and Welsh taxpayers, and it is time for Labour to finally do the right thing and sell the airport to the private sector.

“Ministers in Cardiff Bay lack the essential expertise to manage an airport. That is why an experienced corporation in the private sector, with proven industry knowledge, would be better placed to ensure the airport not only survives but thrives.”

The Herald understands that further investment decisions will be made as the programme progresses, depending on the outcomes and economic impact of the initial phase.

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Business

West Wales tourist attraction’s new water park hopes

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WEST WALES could have a new water park attraction in proposals being mooted by the award-winning Moody Cow Farm Shop and Welsh Kitchen, near Aberaeron, Ceredigion.

The award-winning Moody Cow Farm Shop and Welsh Kitchen, along with Bargoed Farm, is owned by Chris and Geraint Thomas.

The couple moved to the derelict farm in 2010 after previously diversifying their cattle farm in the Brecon Beacons, but then losing everything due to legal issues.

They completely transformed the site before opening Bargoed Farm Campsite in 2018 and using wooden hot tubs as a unique way to bring in customers.

Chris and Geraint then launched The Moody Cow Farm Shop and Welsh Kitchen, serving up a wide range of Welsh dishes created using local ingredients.

Over the years, the attraction has expanded, recently gaining permission for a trampoline park on-site, called the ‘Bouncing Bull,’ and, back in 2023, was given planning permission expand its on-site caravan park with new tourer pitches with hot tubs, and glamping accommodation.

Bargoed Farm has now launched a public consultation on proposals to expand the attraction with a water park and leisure facility.

Details of exactly what is proposed have not been released yet.

The consultation, available online through surveymonkey or from Bargoed Farm, says: “Bargoed Farm is planning an exciting new indoor and outdoor waterpark and leisure facility, designed to provide year-round water-based activities for visitors and the local community.

“This new development will include indoor and outdoor swimming pools, thrilling water slides, a dedicated training pool, a children’s splash area, and a warm activity pool, ensuring that people of all ages and abilities can enjoy high-quality aquatic experiences in all seasons.

“Our aim is to create a premier leisure attraction in Mid Wales, offering family fun, fitness, and relaxation, while also supporting the local economy by drawing more visitors to the area.

“As we progress with the planning and development of this project, we are committed to ensuring that the views and needs of both local residents and visitors are fully considered. This survey has been created to gather your feedback on how you would use the facility, what features are most important to you, and how we can make it as accessible and enjoyable as possible.

“Your insights will directly influence the final design of the waterpark, helping us to shape it into a valuable asset for the local community and a must-visit destination for tourists.

“By taking part, you are helping to ensure that this development is designed in a way that best serves those who will use it most.

“We greatly appreciate your time in completing this survey.

“Whether you are a local resident looking for improved swimming facilities, a visitor who would love a high-quality waterpark in the region, or a business owner interested in how this could boost the local economy, your feedback is essential in shaping the future of this exciting new project.”

Bargoed Farm, which publicised the proposals on March 31/April 1, has confirmed the scheme was not an April Fools.

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