Fuel profits soar as Motor Fuel Group pays £310 million to owners amid rip-off claims
- Motor Fuel Group issued £310 million in bonds to finance dividends to its owners.
- Since 2021, CD&R has taken out £429 million in dividends from MFG.
- The actions of MFG come under increased scrutiny amid concerns of consumer exploitation.
In the United Kingdom, accusations have surfaced against the petrol industry related to consumer exploitation as the private equity owners of Motor Fuel Group (MFG), Britain's largest independent forecourt operator, are poised to distribute another significant dividend. MFG operates over 1,200 petrol forecourts under major brands such as BP, Shell, and Esso. Recently, MFG issued £310 million of bonds which are intended for funding dividend payments to its primary owner, the American private equity firm Clayton Dubilier & Rice (CD&R). This new dividend payment comes on top of the £429 million that CD&R has already extracted from MFG since 2021. The bonds issued carry an interest rate of 8.6 percent, indicating a considerable financial undertaking aimed at bolstering shareholder returns. Alongside the dividend payments, funds from the bonds are also allocated to MFG’s cash reserves, reflecting an effort to maintain financial stability amidst criticism. These developments have emerged as public dissatisfaction grows, particularly concerning rising fuel costs and the perception of price gouging within the sector.