Traditional garages in one of the Balearic Islands are in danger of extinction as the rise of unattended petrol stations is causing a major drop in profits.
Renting a car on holiday may seem like the perfect mode of transport to explore the islands.
In peak season, the AEVAB association estimates there are over 95,000 rental cars on the road, making it a popular choice for holidaymakers.
There are currently 210 service stations in the Balearics, an archipelago made up of Majorca, Menorca, Ibiza, Formentera and Cabrera. 180 of these are traditional garages and 30 are unattended.
The unmanned sites allow for customers to ‘pay at pump’. This results in cheaper prices for drivers, as sites with no staff have savings of five to 10 euros (£4.17 – £8.33) for a full tank.
Fuel prices on the islands are known for being high, with a litre of super unleaded petrol costing up to 10 cents more than the Spanish mainland.
Tourists driving are now more inclined to stop off at the unattended sites to save money than opting for someone to fill the tank up for you, also cutting the expense of tipping.
Joan Mayans, president of the service stations association in the Balearics, has said that the service stations with pump attendants have seen their profits plummet a whopping 20 to 30 percent.
“We cannot lower our prices any further. For a small station, we need at least four workers: one for the morning shift, another for the afternoon shift, another to cover days off and another to cover holidays,” said Mayans, as reported by the Majorca Daily Bulletin.
He added: “On average, the cost per employee is 25,000 euros per year. How many litres of fuel do we have to sell to pay for it?”
He also said that the profit margins for traditional service stations are already very small. Many garages have to offer alternative services to stay afloat, such as a shop for everyday goods, car washing and even a cafeteria.
The increased cost of expanding services at stations means laying off staff as an option to keep the businesses open while making a profit.
Mayans said: “We will do everything possible before closing, but if the figures continue to not add up, we will have no choice but to close down for good”.
