As the company behind the Jet brand, Phillips 66 has some big plans in Scotland over the next year. We speak to the company’s Bruce Mackie about those plans and ask him to shed some light on the complexity of the fuel trade.
Does Scotland play a major role for Jet?
Scotland remains a vital region for us. We’ve got 46 independently owned Jet branded forecourts throughout the country at the moment. Many people don’t realise just how strong the Jet brand is in central and southern Scotland – with more branded dealer sites than Shell, Harvest Energy and Murco combined.
So what’s the plan to increase that?
Continued expansion, with a particular focus on the north of the country over the next 12 months. We recognise that it won’t be a walk in the park – the Scottish fuel market is very competitive. But, our renewed dealer proposition is strong and a compelling reason for independent dealers to move to Jet. We’ve invested heavily in new programmes and initiatives to set exemplary standards.
It’s a big year for jet too
Yes, it’s our 60th anniversary. A lot of our market strength comes from our heritage so turning 60 is definitely worth celebrating. Many of our Scottish forecourts have been part of the Jet ‘family’ for over 20 years. I call it a family because that’s exactly how Brian Madderson, Chariman of the Petrol Retailers Association described it when he attended our recent annual dealer conference at Gleneagles Hotel.
There’s a focus on current retailers and recruitment then?
Our existing dealers are equally as important as any future ones, so dealer retention is a big priority for Jet. So far this year, ten Scottish sites have already signed retie contracts including sites in Hamilton, Motherwell, Edinburgh, Armadale, Kelso, Ardrossan and Clydebank.
How is the independent fuel industry performing?
The fuel market has changed dramatically over the past ten years. Competition from supermarkets has reduced the number of independent dealers by 29% since 2003. There are now more suppliers chasing fewer dealers than ever before, so suppliers need to fight hard to differentiate themselves from the competition.
From a dealer perspective, security of supply is a key area of concern. There are only three oil company-owned refineries left in the UK, including our own Humber refinery – one of the most sophisticated in Europe. With the backing of this refinery, we are able to offer security of supply to our entire dealer network, irrespective of where they are located in the country. There is a lot of uncertainty about the future of UK refining, but we can comfortably say that Phillips 66 will continue to play a key role in refining over the long-term future.
What developments are driving innovation in the sector?
One development in the fuel sector that is definitely here to stay is the requirement to blend biofuels into petrol and diesel. Over time, legislation is likely to require the inclusion of increasingly higher levels of renewables. As Jet is part of the global Phillips 66 oil company, we are ideally placed to meet the challenges posed by these requirements.
What impact is the debate of pricing having on the industry, if any?
Pricing is an age-old debate in the fuel sector, and that’s unlikely to change in the short or long-term future. We welcome price competitiveness across the industry, but our focus has always been on quality, service and value. Value has been at the heart of our brand for almost 60 years and our aim is to consistently offer competitive pricing.
What challenges do you see for the future of the forecourt industry in Scotland?
Scottish forecourt operators will face continued pressure from supermarkets and will have to offer compelling reasons to attract and keep their customers. Competitively priced fuel is a given, but so too are a strong shop offering and consistent availability of fuel.