Meeting ATF Fuel’s unique needs with a flexible approach
"Mabanaft are always there to offer advice. They’ve helped our business with obtaining additional supply in the UK and assisted with matters relating to fuel duty and VAT on our invoices." - James Proctor, supply and logistics manager, ATF Fuels
ATF Fuels is a Jersey-based, independent fuel distributor
Operating from Jersey, ATF Fuels imports fuel for their bulk delivery, top-up and fuel management services.
The fuel terminal at Jersey harbour is owned and operated by a competitor, making it difficult to break into the existing fuel market on the island. ATF Fuels found an inventive way to import their fuel using iso tank containers and urban trailers that bypass the terminal, as James Procter, ATF’s supply and logistics manager explains:
“By importing our fuel via iso tank containers and urban trailers we’ve managed to circumvent the islands’ oil terminal, avoiding the storage, throughput and distribution fees for using it. This is a completely new supply chain for the Channel Islands, especially on the scale we’re doing it.”
Increasing supply options
Iso tanks aren’t a widely used transport method for fuel in the UK, and therefore terminals and loading locations required educating on how they are loaded. Mabanaft helped ATF Fuels identify new locations along the south coast close to their ferry links, that were willing to look into a different method of supply:
“We reached out to Mabanaft asking them to help us identify new supply locations. The team at Mabanaft were able to identify terminals along the south coast where ferries to Jersey and Guernsey operate that could load our iso tank containers. They helped us push things along at three new supply locations and demonstrate to the terminals that the iso container loading process was safe and workable at their sites. Working with Mabanaft has increased our supply options.”
Although Jersey and Guernsey are part of the UK, they have separate VAT and fuel duty treatments to the rest of the mainland. To save ATF time, Mabanaft tailored their invoicing to suit ATF’s needs:
“There are different fuel duty rates in Jersey and Guernsey compared to the rest of UK. Our preference is to buy ex-duty fuel from UK suppliers to avoid having to go through a drawback process with HMRC for UK duty paid.
“Mabanaft invoice us a stripped-down cost that doesn’t include UK duty or VAT, so we don’t have to go back through HMRC to chase repayment on duty that’s owed. It’s not a particularly complicated process but it’s fairly time consuming, so it’s a big help that Mabanaft are able to take care of that for us.”
Continuity of supply
During the Gatwick drone incident in December 2018 more planes than usual were collecting fuel at Jersey airport in case they had to hold at Gatwick. This impacted fuel demand at what is usually a quieter time of year for ATF Fuels:
“Quite often large aviation operators will only pick up the minimum fuel they require in Jersey but during the Gatwick drone incident a number of airlines that wouldn’t usually collect on island were filling up. We saw a large increase in volume for the time of year. Mabanaft helped meet some of the increased supply and demand, especially at the beginning of January.”
Excellent customer service
Besides meeting their supply and invoicing requirements, ATF Fuels also values their working relationship with Mabanaft:
“We have a good working relationship with Mabanaft. We know we can pick up the phone if we have any issues or need any guidance and they’ll help in any way they can.
“They’re always there to offer advice and have definitely aided our business on the duty side of things and in expanding our supply locations in the UK. Mabanaft have worked around all invoicing issues we’ve thrown at them as unfortunately, not all systems are set up to invoice VAT and duty free!
“We really don’t have any concerns working with Mabanaft. Supply continuity has been good at all locations and as far as we’re concerned supply through Mabanaft has only been a benefit to our business.”
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