Why the daily fuel price changes?

c53204

Today 3 local garages (within a mile of each other) changed their prices. One of them THREE times in one day.

At 0730 Tescos had gone up 4p a litre, Asda up 1p. A Shell garage was down 2p at 0730. By 1230 it had gone up 1p. But by 1630 it had gone up another 2p!

I fully understand (but don't like it) that oil prices are volatile. But surely this is not right?

wealdroam

c53204 wrote: »

Today 3 local garages (within a mile of each other) changed their prices. One of them THREE times in one day.

At 0730 Tescos had gone up 4p a litre, Asda up 1p. A Shell garage was down 2p at 0730. By 1230 it had gone up 1p. But by 1630 it had gone up another 2p!

I fully understand (but don't like it) that oil prices are volatile. But surely this is not right?

You say "surely this is not right?"

So, what's wrong with it then?

Each company wants to make the most money.
One way of doing that is to increase their price to maximise profit per litre... but of course customers may go elsewhere.
Another way is to reduce your price to attract more customers, thus sell more litres at less profit per litre.

A finely balanced thing.

Again, what's wrong with that?
Nothing wrong with 'tuning' the price several times a day, is there?

Incyder

It could be a trick. To make the prices change so often can make your eyes/brain go blurry thus you turn away and stop looking to regain some sence of normality. Whilst you are looking away they will wack it up again. Its all a con. Petrol and Insurance, its all a con.

c53204

I understand companies have to make a profit. But when the price of oil is volatile (or any other commodity), profiteering has and does occur.

I just think the retailers are profiteering. They put the price up for a few hours and if other garages don't respond, then they put it down again. If those garages DO respond, then they put it down to attract customers, etc, etc. Nothing to do with how much they paid for the oil.

They are trying to force prices higher - at least that's what it appears.

dzug1

What actually is WRONG with 'profiteering'? It's part and parcel with competition

c53204

I suppose you think what the bankers have done to the worlds economy is OK too?

Disproportionately large or grossly unfair profit, generated often through manipulation of prices, abuse of dominant position, or by exploiting a bad or unusual situation such as temporary scarcity. There is usually no governmental control over profiteering unless it involves illegal means.

wealdroam

c53204 wrote: »

...profiteering has and does occur.

Yes, and your point is?

c53204 wrote: »

I just think the retailers are profiteering.

Ah... I now see your point.

c53204 wrote: »

They are trying to force prices higher - at least that's what it appears.

Yes, that is exactly what they are trying to do.

Kilty_2

Try this on for size - if I return my hire van without a tank of diesel they'll charge £2.85 a litre!

Rolandtheroadie

Kilty wrote: »

Try this on for size - if I return my hire van without a tank of diesel they'll charge £2.85 a litre!

Wont be long before thats a bargain lol.

2sides2everystory

c53204 wrote: »

Today 3 local garages (within a mile of each other) changed their prices. One of them THREE times in one day.

At 0730 Tescos had gone up 4p a litre, Asda up 1p. A Shell garage was down 2p at 0730. By 1230 it had gone up 1p. But by 1630 it had gone up another 2p!

I fully understand (but don't like it) that oil prices are volatile. But surely this is not right?

You are right, it is not. It looks to me like further evidence of cartel activity. You may have noticed that Shell led the hike three weeks ago. I think it was Tesco and Sainsburys' turn to be the longer term good guys and stay down longer. It was Asda's turn to follow Shell up within a day or two.

Just watch - if it ever comes down it will be Asda's turn to lead the way down.

What you have seen is just some balancing up.

Meantime we have Asda charging around 5% more today than before the announcement of the duty cut.

Cartel activity is unlawful. Profiteering is just a word.

Hintza

The price of oil in the UK has hit an all time high in the last few days. (in sterling)