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operators than large ones, with 92% of Jet retailers rating their relationship as ‘good’ or ‘very good’. Murco scored 80% on the same basis, but 43% of Shell retailers and 39% of Esso retailers said they would change to a different company if they could.

Retailers seemed increasingly aware that their fuel prices were being undercut by supermarkets, 86% being aware that their products were more expensive, compared to 70% in the previous, 2002 survey. Loyalty schemes came under fire from retailers, with almost half of the retailers participating in them – around half the total – saying they were ineffective in growing profitable sales.

Only 3% of Esso’s independent retailers participated in the company’s schemes. Further concern was evident among RMI survey respondents about wet stock losses. The RMI’s petrol division head Ray Holloway said, “It is critical that fuel suppliers are forced by regulation or law to confirm to a more auditable method of fuel measurement that will ensure that only fuel physically delivered is charged for.”

UK, Birmingham, Fireworks prosecution

On Friday 17th June 2005 at Birmingham Crown Court, Mr Baljinder Singh of Claines, Worcester was fined for overstocking and inappropriately storing fireworks at a shop premises in the Mere Green area of Sutton Coldfield trading as “Fireworks Direct”.

Explosives Officers from Hay Mills Fire Safety Centre were alerted to the shop by Birmingham Trading Standards Officers who had been concerned about both the quantity of fireworks on site and the manner in which they were stored.

A stock take by the Explosives Officers, and the presence of a delivery note indicating that in excess of 1500kg of fireworks had been delivered just a few hours previously, gave them grave cause for concern as the shop was registered to store only 250kg of fireworks.

During the case, heard by Mr Justice Ross, he commented that Mr Singh’s manner of dealings had posed a major risk to the safety of the staff he employed and people who worked and lived in the vicinity of the shop. He went on to comment that there was a huge risk to members of the Emergency Services who would be called to the shop if there had been a fire.

Judge Ross fined Mr Singh £12,500 on two counts amounting to £25,000 in total. This is to be paid in full by 30th September 2005 or Mr Singh will serve a custodial sentence of 18 months.

Mr Justice Ross thanked the investigating Officers for their diligence and professionalism in bringing this case before him in order to ensure the safety of the public.

Ireland, Shell in talks to offload 50 Irish petrol stations

Oil giant Shell is in talks to sell off its 50 petrol stations in Ireland. The company said on June 24 that it was in negotiations with a number of bidders for the stations. Although it would not release the names, it is believed that all the major forecourt operators, including Maxol, Esso and Statoil, are interested. No price has been given out by the company, but it could fetch more than 50 million. Shell has around 50 petrol station in Ireland and services about 160 others. The business up for sale also includes its commercial fuels, lubricants and marine businesses.

The company will retain its stake in the Corrib natural gas project and its aviation, bitumen and chemicals units. Shell Ireland director Frank Bergin said he hopes the sale will be concluded in a few weeks. “For reasons of commercial confidentiality, we are not able to disclose these parties, or to discuss this matter in more detail at this time. If we do decide to proceed with a sale, it would be Shell’s intention to sell the business as a going concern,” Dr Bergin said. The company said it was selling off the retail arm to focus on its more profitable business units.

Competition at the pumps has eroded any gains made by the oil firm from the soaring cost of fuel. The entry of supermarket giant Tesco into the market has driven margins down further.

Ireland, April 26 2005. Esso and Mazol to swap sites in forecourt deal

ESSO and Maxol, two of Ireland’s biggest petrol retailers, are expected to swap service station sites in a deal aimed at streamlining their operations.

Esso recently placed 15 sites outside Dublin up for sale as it concentrates its activities in the capital. As part of the deal, a large number of these sites will now be operated by Maxol. In return, Maxol is understood to be providing Esso with three sites in Dublin.

These include the Maxol service station at Dublin airport. CB Richard Ellis Gunne is handling the sale of Esso’s petrol stations, which were riginally expected to fetch about 25m on the open market. A number of the sites will be sold separately. These include a station at Ballybrit near Galway racecourse, valued at more than 3m, and a site at Bluebell in south Dublin, which has a guide price of 750,000 with a condition attached that it no longer be used for retailing petrol.

Both properties are expected to attract the attention of property developers. Separately, Maxol is creating its own all-Ireland home heating oil distribution business - Maxol Direct - in response to falling prices and tightening margins. The business is worth 200m a year to the company. Tom Noonan, Maxol’s group chief executive, said the growth of Maxol Direct was down to a squeeze on prices and margins, which is encouraging it to bypass independent distributors.

Ireland, Dublin May 4 2005. Businessman fined over safety breach after fatal explosion

A Cork businessman was fined 25,000 for health and safety breaches after one of his employees was killed when a petrol tanker exploded.

The 23-year-old was carrying out repairs on the empty tank when the blast occurred in September 2003. Robert Fitzgerald, from Aghada, Midleton pleaded guilty to failing to ensure the tank was cleaned thoroughly and ensuring a safe working environment before the employee began the work. He was fined 25,000 at Cork Circuit Court.

Following inspections the Health and Safety Authority (HSA) found work practices at the premises were deficient in several respects. The HSA noted the tank had contained petrol as its last cargo but warned that before work could be carried out on the inside of such a tank, appropriate cleaning and gas-freeing – to remove a potentially

explosive atmosphere – should take place. The authority revealed a device used to generate the steam to clean the tank using the recommended methods was unsuitable. A report showed the small portable hot water washer was unsuitable as it was incapable of producing the quantity of steam required. And it found a gas analyser or detection meter was not used to test the atmosphere inside the tank following cleaning.

The safety statement for the premises referred to the use of “gas free certificates” and “permits to work” but no such system was put into place. The Health and Safety Authority said the culture of risk taking in firms around the country had to be rooted out. Mark Rowlands, HSA inspector, said the authority was determined to ensure employers of every size from large companies to sole traders maintained the highest safety standards in the workplace. “Employers should make sure that proper controls have been put in place to minimise risks to staff health and safety.

We are particularly concerned with the tendency of small businesses to take risks with health and safety,” he said. “The message needs to go out that the cost of not putting safety measures in place can be far greater than the cost of addressing those safety issues head-on.” Robert Fitzgerald,

Aghada, Midleton, who operates his business in Midleton had pleaded guilty to one count taken under the Safety, Health and Welfare at Work (Confined Spaces) Regulations 2001. Mr Fitzgerald admitting failure to provide a safe system of work for the entry of persons into confined space.

EU, A guide to EU Standards and conformity assessment

This guide is an easy-to-use introductory reference for industry and government officials on the general principles and concepts behind the European Union’s (EU) "New Approach" laws and directives.

It is designed to help business and government officials understand the new laws, the EU’s standardization process, and the relationship between the European Commission and the European standardization bodies in the European Union.

It also provides information on the EU’s approach to conformity assessment and requirements for obtaining CE mark to gain access to the European Market. The guide offers explanations of such concepts and requirements as: notified bodies, conformity assessment modules, supplier’s declaration of conformity, technical construction files, user manuals, authorized representatives, and product liability in the European Union. http://ts.nist.gov/ts/htdocs/210/gsig/euguides/sp951/sp951.htm

Hungary, Tesco announced plans to open 16 filling stations in Hungary in 2005.

Oil companies are looking to premium fuel options to protect market share from supermarket rivals. Across Europe, the entrance of supermarkets into fuel retailing has meant cheaper petrol prices for motorists.

In response, the oil majors are focusing on performance fuels to help them tap into a market the price-driven retailers cannot reach. However, given the current oil price spike, consumers will need to be convinced that premium fuel is the right choice. In the light of its recent record profits, UK retailer Tesco [TSCO.L] announced plans to expand further into Europe's fuel retailing market with the opening of approximately 16 filling stations in Hungary alone in 2005.

Meanwhile Total [FP.PA] has launched Excellium, a premium fuel which will be available in France from April and the rest of Europe by the year end. Oil majors have been consistently undercut by petrol prices offered by supermarkets such as Tesco and Carrefour, which benefit from being able to counterbalance fuel discounts by charging more on non-fuel products. According to AGCM, Italy's Competition Authority, the entry of supermarkets into other European fuel retail markets has resulted in a 10-15% reduction of petrol prices when compared with periods prior to their arrival. In France in 2003, supermarkets accounted for 54% of fuel volumes in the market. In the UK, Tesco's homeland, supermarket volume shares grew by 7% from 1997 to 2003. These numbers alone are testimony to the appeal of cheaper petrol.

In response to such aggressive competition, oil companies are now investing money and technical expertise in the development of premium fuels - an area that the supermarkets cannot compete in. The likes of BP's Ultimate and Total's Excellium claim to offer not only high performance but also improved fuel economy and less pollution. However, premium fuels do not come cheap.

While product diversification is one of the only ways oil majors can win motorists over, a combination of scepticism and price consciousness may mean that premium fuels will only appeal to the most discerning motorist and, even then, on the condition that such fuels live up to their claims. Doubts must therefore be raised as to whether, in the current climate of record high oil prices, such product differentiation will persuade consumers to choose premium offerings over the apparently cheaper alternatives offered by the supermarkets.

USA, Lightning strikes Florida petrol station

The Circle K remains closed Wednesday afternoon as company officials try to figure out the extent of the damage and how to repair it. As strong storms rolled across Pinellas Park Tuesday night, a lightning bolt struck the metal cap for underground gas tanks at the station.

Chief Lou Sclafani, Pinellas Park Fire Department: "The underground Glass Fibre gas tanks, which have a 10,000 gallon capacity, were blown out of the ground ."Witnesses say the impact caused the tanks to come up out of the ground, some two to three feet. There was an explosion, then everything settled. What's left? A huge depression in the concrete parking lot.

Sclafani: "There were actually two people filling up when the storm rolled through. One of them jumped in their car and drove away while the gas hose was still in their car. It could have been very dangerous."

Fortunately, no one was injured. A gas station employee immediately shut down the pumps, but the damage was immense. One tank contained 6,000 gallons of diesel fuel, the other tank held about 4,000 gallons of gasoline. Both we're breached.

Sclafani: "They're double walled fiberglass tanks and they're made to take some impact and control some amount of leakage. But this is unheard of, what happened tonight."