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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

Milford Haven dry dock pitched as home for giant £480m superyacht yard

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Port says dock is being actively marketed as company unveils vast shed plan that could transform town skyline and create up to 3,000 jobs

A HUGE plan to turn Milford Haven’s dry dock into the heart of a £480 million superyacht construction and refit yard has been unveiled, in what could become one of the most dramatic development proposals ever put forward for the town.

Renderings released alongside the announcement show a colossal enclosed build hall covering the existing dry dock and dominating the waterfront skyline. Based on the images, the proposed structure appears likely to be nearly as long as some of the German submarine pens built on the French Atlantic coast during the war.

There is a need for superyacht facilities globally, with order books queuing for repairs and upgrades, Superyacht Sales UK said,

The scheme has been put forward by Superyacht Sales UK, which says it is in early-stage discussions with Milford Haven Port Authority over the possible use of the Port’s 180-metre dry dock as part of a long-term vision for a major new marine engineering hub in Pembrokeshire.

The company says the wider project could eventually support up to 3,000 skilled jobs and generate around £150 million a year in social value, while helping establish Milford Haven as a centre for superyacht refit, construction and green marine technology.

Port’s response cautious

Despite the eye-catching scale of the proposal, the Port has given only a limited response.

Huge plans for Milford: Kerry Ballard, founder of Superyacht Sales UK

In a statement to The Herald, a spokesperson for Milford Haven Port Authority said: “The dry dock is commercially available for rent and is being actively marketed. We have responded to various organisations that have shown an interest. We are unable to comment further due to commercial sensitivities.”

That response makes clear the dry dock is being marketed commercially and that Superyacht Sales UK is not the only organisation to have shown interest.

The release issued by Superyacht Sales UK says the company is also exploring the possible development of a custom new-build shipyard on the site of the former Royal Naval Armaments Depot on the edge of Milford Haven. However, it acknowledges that no contact has yet been made with the current landowners and that the entire proposal remains at concept and feasibility stage.

Kerry Ballard, founder of Superyacht Sales UK, described the plans as a long-term ambition and said discussions with the Port were exploratory.

She said: “This is a long-term vision, and we are at a very early stage. Our discussions with Milford Haven Port Authority are exploratory, focused on understanding what may be possible in respect of the existing dry dock facilities.

“Milford Haven presents a compelling opportunity. The combination of deep-water access, industrial heritage, and alignment with the Celtic Freeport strategy, particularly around hydrogen and green energy, creates a highly attractive proposition for a next-generation shipyard.”

She added that any development of this scale would need to be shaped in partnership with the local community, stakeholders and education providers.

Questions over scale

There is no doubt the vision is bold. If built in anything like the form shown in the released images, the structure would completely alter the appearance of the docks and create a huge new industrial landmark visible across much of the town.

Rather than sitting beside the dry dock, the proposed shed appears designed to swallow it almost whole, enclosing the dock within a giant shell intended for superyacht construction and refit work under cover.

The sheer scale of the concept is likely to prompt both excitement and scepticism locally.

Supporters will point to Milford Haven’s deep-water access, industrial heritage, marine infrastructure and long association with heavy engineering and energy industries. In theory, those strengths could make it a credible location for specialist shipyard activity if sufficient private investment and commercial demand existed.

The company says the international market for superyachts over 30 metres is growing, with existing European yards facing capacity constraints. Its pitch is that West Wales could capture part of that market while also linking the development to future propulsion systems, including hybrid, battery-electric and hydrogen-powered vessels.

The proposal also includes talk of partnerships with colleges and universities to create training pathways in advanced composites, precision engineering and sustainable marine technologies.

Speculative at this stage

For Milford Haven, the attraction is obvious. A project on this scale would not just mean another industrial tenant taking over an existing dock facility. It would represent a major shift in ambition for the waterfront and could, if realised, bring a new type of high-value engineering work into Pembrokeshire.

But serious questions remain.

No planning application has been submitted. No formal development agreement has been announced. The Port has not indicated support for any specific proposal. At this stage, there is no public evidence of secured funding for a project on anything like the scale being discussed.

There are also likely to be wider questions about land control, infrastructure demands, environmental considerations, traffic, visual impact and whether local people would genuinely benefit from the promised jobs and training.

For now, the proposal remains an ambitious vision rather than a confirmed development.

If the idea progresses, it could mark the start the biggest waterfront development discussions the town has seen in years.

 

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Business

Crug Glas offers exclusive wedding luxury in the heart of Pembrokeshire

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Private country house venue near St Davids combines elegant celebrations, fine dining and countryside stays

TUCKED away in the Pembrokeshire countryside just a short drive from St Davids, Crug Glas Country House has built a reputation as one of the area’s most exclusive wedding and events venues.

Set among peaceful rural surroundings and restored historic buildings, the venue offers couples and guests a private country house experience where they can celebrate, stay, dine and unwind in stylish surroundings.

Crug Glas is particularly well known for its exclusive-use weddings, giving couples the chance to enjoy the venue as their own for the day. From smaller, intimate ceremonies to larger celebrations, the setting offers flexibility as well as privacy, allowing each wedding to be tailored to suit the couple’s vision.

With elegant interiors, attractive outdoor spaces and dedicated areas for both ceremonies and receptions, the venue is designed to provide a smooth and relaxed flow throughout the day.

Food is also a major part of the Crug Glas experience. The kitchen focuses on high-quality, locally sourced ingredients, with menus designed to feel refined while still personal to each event. From wedding breakfasts and private dinners to other celebrations, the dining experience is regularly praised by guests as one of the highlights of the venue.

Crug Glas also hosts Sunday lunches on the last Sunday of every month, offering another chance for visitors to enjoy the setting and its food in a more informal way.

For those staying overnight, the country house offers individually styled rooms combining comfort with character. The accommodation is aimed at giving guests a luxurious but welcoming place to relax, whether they are part of a wedding party, attending a private event, or simply enjoying a countryside break.

While weddings remain at the heart of Crug Glas, the venue is also used for private parties, retreats, workshops and group gatherings. Its adaptable layout and attentive service make it suitable for a wide range of events, while maintaining the same sense of quality and exclusivity.

Guests frequently praise the venue for its peaceful location, high standard of food, beautiful rooms and friendly team, with many describing their stay or event as memorable and seamless from start to finish.

Located in the heart of Pembrokeshire but within easy reach of local towns and coastal attractions, Crug Glas offers a combination of privacy, comfort and understated luxury that continues to make it a popular choice for special occasions.

For wedding bookings, private events and accommodation enquiries, contact Crug Glas Country House directly.

 

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Business

House plan for 25-acre Felindre Farchog farmland site

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PLANS for a rural enterprise dwelling to support a Pembrokeshire horticultural business are being recommended for approval despite concerns from the local community council.

In an application recommended for approval at the April meeting of Pembrokeshire Coast National Park’s development management committee, Southern Roots Organics/Awen Organics, through agent Preseli Planning Ltd, seeks permission for a rural enterprise dwelling, track extension, and associated works at Eithin Farm, Felindre Farchog, near Nevern.

This application is being presented to the Development Management Committee as local community council Nevern has objected to the application raising material planning matters, contrary to the officer recommendation for approval.

An officer report says Eithin Farm comprises about 25 acres of agricultural land, with an additional seven acres to be rented by the applicants; the applicants running a horticultural business from the site, using multiple polytunnels and employing irrigation systems which require careful management.

The report says the business has been trading for over three years and can support a full-time worker, meeting criteria which addresses planning for sustainable rural communities. The proposal is said to meet these requirements, and the officer’s report confirms a genuine need for the dwelling.

Nevern, in its objection, said: “The living accommodation is supposed to be part of the business, it needs to be closer to the sheds, making the whole enterprise more aesthetically pleasing. The area designated for future seasonal agricultural workers would be an areas that would be more appropriate for a traditional cottage. A restriction on the house, a tied house needs to be considered.”

Objections to the plan have also been received from members of the public raising concerns including foul water disposal and the application “has nothing to do with the new current business”.

However, a number of representations have expressed support for the application. Issues raised include the benefit of applicants living on site, helping to reduce travel and carbon emissions, and confirming support for local, small-scale horticulture, and the contribution the business makes to the community.

The report says there is an identified need for a rural worker’s dwelling, especially due to the need to quickly respond to changes in crop conditions and potential failures in irrigation or ventilation systems.

It concludes: “The evidence submitted with this application, having been assessed by PCNPA’s Agricultural Advisors, is sufficient to demonstrate that an essential need exists for a rural enterprise dwelling, and that the proposal meets the tests set out in [policy].

“The siting and design of the dwelling are considered acceptable with no concerns in relation to landscape impact, amenity or biodiversity. Overall, the proposal is considered to be acceptable and a recommendation to grant permission is made.”

 

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