Fuel prices campaigner Callum Ian Macmillan, who organised the showdown accused Mr Chambers of adopting “smoke and mirror” tactics. He said Mr Chambers failed to explain the price difference between the islands and the mainland.
He stated: “You claim to be making a minuscule amount of profit. We do not believe you.”
Mr Chambers retorted: “It is not the same ship which goes to Inverness and islands. You are incorrect on that. It’s a bigger ship which goes to Inverness and Aberdeen and a smaller ship to the islands.
“There’s no point talking to me about the differentials. I suggest you submit your analysis to the Office of Fair Trading. “
Oil company executives came under fire over the higher price of fuel in the Western Isles at a heated meeting in Stornoway last night (Mon).
Sam Chambers, the non-
He was accompanied by Norman Macleod, Western Isles manager for Scottish Fuels, Inverness-
Only about 45 people were in the audience and nearly half of them were politicians or council hopefuls. The heated forum disintegrated into a shouting match at times.
Mr Chambers revealed that Scottish Fuels only made a gross margin return of 2.61 pence per litre for diesel in Stornoway last year.
He said: “Out of that we deliver to the customer, pay drivers and pay staff, maintain our marine terminals, invoice customers and have to make a profit.”
He said: “I think there is an aspect in Western Isles of remoteness and you do pay for that remoteness.”
Mr Chambers explained that the fuel is still owned by refinery operators Conoco Philips up to the point it is drawn down from tanks in Stornoway and Loch Carnan. Though the fuel is shipped in Scottish Fuel sea tankers and stored in its island depots, it still belongs to Conoco. The price is determined on the prevailing rate on the particular day it is pumped into road tankers on the islands.
Islander Susan Duncan pointed at the fuel executives stressing fuel poverty.
She said: “Do you know that people on this island have to choose between eating and heating their home because of your prices.”
Fuel prices campaigner Callum Ian Macmillan, believes people on Scottish islands are being ripped off by powerful wholesalers.
He highlighted the filling stations set their own prices without influence from Scottish Fuels. He queried why campaigners were not lobbying Tesco to build a filling station on the islands since the supermarket chain undercut competitors on petrol.
Mr Chambers pointed out that it needed to invest nearly £3 million to maintain the islands’ depots for the future.
He pointed out that Barvas filling station which sells fuel much cheaper than rivals was supplied indirectly by the Scottish Fuels’ Stornoway depot via Highland Fuels.
Scottish Fuels regional manager Mr Donald Mackay said Conoco dictated the wholesale price daily. He pointed out it was unfair to compare prices in Stornoway to Portree as Scottish Fuels owned the stock on Skye and if it purchased fuel on a falling market it passed on the savings to consumers there.
He said they could not explain the price difference but repeatedly highlighted that different filling stations set their own specific profit margins.
He pointed out many of the oil giants pulled out of the fuel distribution business because “it was not making any money.”
Later, campaigner Callum Ian Macmillan said the “Fair Fuels for Islands’ campaign started because clearly someone is profiting at islanders’ expense.
“We’ve had three investigations into retailers but never has the wholesale price and suppliers investigated. People want honest answers to why we are being charged consistently higher prices and why wholesale prices increase here at times they do not rise anywhere else in the country.
“Fuel prices are consistently 14p to 20p a litre more expensive in the Western Isles than on the mainland. Clearly something is wrong and someone is making excess profits and this has to be stopped.”
Mr Macmillan queried why petrol costs about £1 a gallon more in the Hebrides compared to Inverness. Fuel in Ullapool is more expensive than the Highland capital but “still eight pence a litre cheaper” than Stornoway when it was discharged from ship in Inverness but faced the added expense of being trucked 60 miles across Highland roads.
Mr Macmillan believed it was a paradox that petrol cost much more at the three main island filling stations which are within a half mile radius of the tanker pier and fuel depot.
Mr Macmillan highlighted: “It comes by bulk sea tanker which is the cheapest way
to ship products and much cheaper than a road tanker. Because of economies of scale
we would expect the priced to be actually lower -
He was adamant that “someone is profiteering and taking a bigger cut than they deserve.“
He added: “If it is not Scottish Fuels then it is the refinery.”
Mr Macmillan exonerated island petrol stations from blame because they have handed their books over and been audited and subsequently cleared in three separate investigations.
A petition calling for an investigation into pricing by distributors has attracted more than 1,600 signatures and has been lodged with the Scottish Parliament.
The Office of Fair Trading (OFT) recently said it is to probe the high cost of fuel in the Scottish Islands.
Sam Chambers insisted the quoted 2.61 pence per litre margin on diesel last year was low and not excessive. Filling stations freely set their own prices he said.
Petrol bosses under fire at heated public meeting 1/2/12