Business

Ascona boss gives his views on rising petrol and diesel prices

Published

3 years ago

March 6, 2022

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

West Wales Holiday Cottages celebrates 20 years of success

Published

4 hours ago

June 13, 2025

Tom Sinclair

Tourism firm marks milestone with community celebration in Cardigan

WEST WALES Holiday Cottages marked two decades in business last week with a special anniversary event that brought together cottage owners, local partners, and tourism supporters from across the region.

The event, held at the popular Pizza Tipi venue in Cardigan, was an opportunity to reflect on 20 years of championing independent stays and promoting tourism across Ceredigion, Pembrokeshire, and Carmarthenshire.

Founded in 2005 as a small family-run business, the company has grown from managing a handful of properties to showcasing almost 600 holiday cottages across West Wales.

Managing Director Lisa Stopher said: “We are so proud of our achievements over the last 20 years. We started with just a few cottages and now offer something for everyone. Some of our owners have been with us since the very early days, which is a testament to the fantastic team we have on board. We have exciting plans for the future and look forward to welcoming guests to West Wales for many more years.”

Guests at the celebration enjoyed food, conversation, and speeches highlighting the firm’s growth and impact on the region’s self-catering industry.

The company has played a significant role in supporting independent tourism and boosting the local economy by connecting visitors with unique places to stay across some of Wales’s most scenic landscapes.

Business

Milford Haven Port: Hospitality income overtakes biggest energy terminal

Published

6 hours ago

June 13, 2025

Tom Sinclair

Tourism and hospitality generate more than any single energy customer, marking a historic economic shift for the UK’s leading energy port

THE PORT OF MILFORD HAVEN — long known as Britain’s busiest energy gateway — has revealed that its hospitality and tourism businesses are now outperforming its largest energy customer.

For the first time in the Port’s history, income from hotels, restaurants, and visitor operations exceeded the revenue earned from its single biggest energy terminal, according to the Port’s 2024 Annual Report.

The milestone marks a strategic turning point in the commercial direction of the trust port, which has traditionally relied on oil and gas terminals such as Valero, Dragon LNG and South Hook.

***Excellent results: Port boss Tom Sawyer has definitely got something to smile about***

Chief Executive Tom Sawyer said that the shift demonstrates the value of diversification in a volatile global energy climate. “Hospitality and tourism generated more income for us in 2024 than the busiest of our energy terminal customers,” the report confirms. “This should be very reassuring to all our stakeholders as it underpins our ability to invest with greater confidence in our core port operations.”

Port invests in community and renewables

As a trust port, Milford Haven has no shareholders. All profits are reinvested locally — and in 2024, more than £500,000 was delivered in community grants, youth outreach, environmental work, and local development.

The Port posted £43.2 million in turnover, a 4.6% rise on the previous year. Operating profits rose by 65.9% to £6.8 million, and net profit after tax stood at £1.9 million, reversing a £1 million loss in 2023. Diversified revenue now accounts for 45% of total income, up from 39% the year before.

Green energy future for Pembrokeshire

***Plans for new floating turbines in the Celtic Sea could provide enough power for more than 4 million homes***

The year also saw the official opening of the Pembroke Dock Marine facility — a £60 million infrastructure project supported by the Swansea Bay City Deal, with visits from the Deputy Prime Minister, the Welsh First Minister and the Secretary of State for Wales.

With the emergence of Floating Offshore Wind (FLOW) as a regional growth sector, and new hydrogen projects launching from Pembroke Port, the Port of Milford Haven is positioning itself as a central hub in Wales’ clean energy transition.

Two green hydrogen firms — ERM and Haush — launched operations in 2024, with trials underway and a 15MW electrolyser planned for local supply and refuelling uses.

Coastal tourism rises — jobs follow

Meanwhile, Milford Waterfront is booming. The Tŷ Hotel, operated by The Celtic Collection, exceeded expectations for its second full year, while McDonald’s, Greggs, Costa, and other outlets created 130 jobs over the past two and a half years.

Milford Marina reached 100% occupancy, with a growing waiting list. The area hosted thousands at events such as the Round Table’s fireworks display and beer festival. One luxury cruise ship, Star Legend, even brought cyclists from North America on a bespoke “Tour de Pembrokeshire”.

A new play park, accessibility upgrades, and repurposing of historic dockside buildings are all planned in 2025.

Changing priorities — and opportunities

***The Yasa Southern Cross, berthing at the Valero jetty, June 2025***

While energy remains the Port’s core operation, the fact that hospitality and tourism are now more valuable than its top energy customer sends a strong message about the changing economy of coastal Pembrokeshire.

Dr Siân George, the Port’s new Chair and a veteran of the marine renewables sector, said the shift was both strategic and symbolic: “This Port is anchored in its community. The fact that our strongest individual revenue stream in 2024 came from local tourism, not global energy, shows that our strategy is not just working — it’s transformative.”

Business

Wales Business Awards 2025 celebrates excellence across the nation

Published

7 hours ago

June 13, 2025

Tom Sinclair

TWELVE outstanding Welsh businesses were honoured at the Wales Business Awards 2025 on Wednesday night (June 12), in a ceremony held at the Holland House Hotel in Cardiff.

Hosted by broadcaster Andrea Byrne, the awards—organised by Chambers Wales South East, South West and Mid—brought together organisations from across the country to celebrate enterprise, innovation and growth.

Whitland-based consultancy Landsker Business Solutions was named Professional Services Firm of the Year, recognised for its high-quality support to both pre-start and established SMEs across Wales. The judges also praised the firm’s ambitious growth strategy and ongoing innovation.

Wayne Evans, Business Development Consultant at Landsker, said: “With our work being so focused on supporting SMEs in Wales to grow, adapt and thrive, it is an honour to have been recognised by industry peers. I’m incredibly proud of our team and grateful to our clients for continuing to place their trust in us.”

One winner was also crowned Wales Business of the Year 2025, selected by headline sponsor Bevan Buckland LLP.

Other category winners included:

Celtic English Academy
Concrete Canvas Ltd
Educ8 Group
FleetEV
Nanopharm
PeoplePlus
Rockwool Ltd
Safran Seats GB
Simply Do Ideas
Tyre Glider Ltd
Wales Millennium Centre

Gus Williams, Interim CEO of Chambers Wales South East, South West and Mid, said: “The Wales Business Awards celebrate the very best of Welsh business, recognising those leading their sectors in key areas such as trade, sustainability and innovation, and positively contributing to the Welsh economic landscape. We’d like to congratulate all of our incredible winners, including Landsker Business Solutions, as well as our worthy finalists.”

Notes:
Bevan Buckland LLP was the headline sponsor of this year’s awards, with support from ACCA Cymru/Wales, Acuity Law, Atradius, Browne Jacobson, Copa Data, Dauson Environmental Group, Legal News Wales, SH&P, Thomas Carroll, Tramshed Tech, the Welsh Government and Xeinadin.

The Wales Business Awards are presented by Chambers Wales South East, South West and Mid, which promotes, connects, supports and informs businesses across Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Carmarthenshire, Ceredigion, Merthyr Tydfil, Monmouthshire, Neath Port Talbot, Newport, Pembrokeshire, Powys, Rhondda Cynon Taf, Swansea, Torfaen and the Vale of Glamorgan.