News image
Page last updated at 09:13 GMT, Wednesday, 16 April 2008 10:13 UK

Rising costs could close stations

A petrol pump
As many as 111 filling stations could be at risk of closure

Research by Highlands and Islands Enterprise into fuel prices warns nearly half the area's petrol stations are at risk of closure.

It suggests there could be grounds for government intervention.

The preliminary study found that out of 237 stations still functioning in February, 111 could close because of high prices and low throughput.

That could leave drivers having to travel long distances to fill up with petrol or diesel.

HIE found 62 stations closed in the past five years.

The final report will analyse why prices vary, the role of distribution companies and the economic effects of price differentials and petrol station closures.

The preliminary results come amid concerns from Western Isles MP Angus MacNeil and the Scottish Crofting Foundation that costs of diesel and agricultural supplies on the isles have increased at alarming rates.

Last November, a Highland Council report said unmanned 24-hour self-service fuel pumps were one way of halting the decline of small rural filling stations in the Highlands.

Except for supermarket forecourts, just one rural station - Scourie in Sutherland - offers the service.

The report ruled out deploying mobile fuel pumps on health and safety grounds.


SEE ALSO
Concerns at rising costs on isles
15 Apr 08 |  Highlands and Islands
Unmanned solution to fuel problem
12 Nov 07 |  Highlands and Islands

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

AmericasAfricaEuropeMiddle EastSouth AsiaAsia Pacific