A Tiree tourism business is trying to stop an "unjustifiable" rise in fuel costs this summer at the island’s community-owned filling station, before the "tourist tax of 4p per litre" causes "irreparable damage".
Tiree Community Development Trust owns and runs Crossapol Filling Station on a not-for-profit basis, its website explains, but it must cover operating costs and build up a reserve against future repairs and replacements.
Any surplus is donated to the main trust charity for community projects. It is "open and transparent" about pricing, it adds, and "will always seek to find ways of bringing costs down and pass such savings on to the consumer".
But in a letter to Tiree Community Council, Tiree Sea Tours’ director Frazer MacInnes wrote: "I am writing to seek your assistance in halting the implementation of a proposed tourist tax of 4p per litre at our local community-owned fuel station during the summer season. As a director of Tiree Sea Tours Ltd, one of the largest consumers of fuel on the island between May and September, this increase would have a detrimental impact on our business operations.
"The sudden and secretive introduction of this tax without public consultation has caused great concern for our company and other local businesses reliant on fuel. This unjustifiable increase will not only result in higher tour prices, potentially leading to a significant decline in trade, but will also jeopardize our ability to retain and employ young local crew members and sustain families on the island.
"Furthermore, the added cost will disproportionately affect private boat owners and agricultural contractors during peak seasons, potentially deterring visitors and harming the island’s economy. We fear that such a decision could harm our community’s economy and reputation as a welcoming destination. I urge the Tiree Community Council to intervene and stop this ill-advised tax increase before it causes irreparable damage to our local businesses and community."
Responding to the letter, the trust told The Oban Times: "The community-owned fuel station does not seek to make a profit. It currently has costs of approximately £48,000 per year it has to cover. It has no source of income except selling fuel.
"The station sells approximately 300,000 litres of fuel a year. To cover costs, we must charge a markup over the cost price equivalent to approximately 16p per litre of fuel sold after applying Rural Fuel Duty Relief. Without this charge, the fuel station is unsustainable and would have to close.
"The fuel station sells just over 50 per cent of its fuel in the peak tourist months of May to August. By charging a mark-up of 18p per litre during these four months, we reduced the mark-up to 14p per litre for the other eight months of this year, mostly to the benefit of year-round residents.
"The policy of applying a winter discount when fuel prices are at their most crippling was made in good faith - with the best of intentions - and we are disappointed to see it being misconstrued.
"We always intended to review the policy on an annual basis, according to sales and costs to ensure a balance between affordability and financial security of the service.
"The policy was certainly not changed secretly. It was announced in December and has been available as a blog post on the trust’s website since then. People are regularly directed to the pricing policy when there are queries about pricing.
"We hope that this lively debate might coax some new directors to join the board of the fuel station. Running a fuel station on a small island is easier said than done and we’d love more hands on deck."
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