Tesco...petrol profiteering ?????

will-he-payitoff

Networkguy wrote: »

Do people still believe this.

Tesco make almost double the profit on petrol to what they do in store! It might not be a huge margin but it is the case.

So why do you think tesco, sainsburys and sommefields are extending their freestanding petrol stations into mini supermarkets. To sell more fuel or more shopping. Also most new asda stores do not have a PFS when they first open and they only build one if the store takings are not high enough.

dn852k4

nobblyned wrote: »

yes but $102 is now £56.95, not the £51.09 as it was last march, the petrol price isn't as low this time because the pound is weaker against the $ than it was.

$91 is £50.99 though. I still see that they're charging £109.9
How can you or anyone else for that matter justify the petrol companies charging an extra 7p per litre? (in real terms)

nobblyned

dn852k4 wrote: »

$91 is £50.99 though. I still see that they're charging £109.9
How can you or anyone else for that matter justify the petrol companies charging an extra 7p per litre? (in real terms)

The crude price is coming off hard, dropped to $86 yesterday.

Wholesale gasoline prices are still relatively high due to large refinery capacity outages on the US Gulf coast following hurricane Ike. As this capacity comes back I would expect the petrol prices to slip nicely providing the crude price doesn't rebound.

(The recent steep drops in the crude price and the resilience of the global gasoline price are related. The production capacity in the US gulf was unaffected by Ike, but the refining capacity was badly hit, hence lower crude due to lack of demand, but higher gasoline due to lower supply of refined product.)