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MSE News: Supermarkets continue to cut petrol prices

edited 30 November -1 at 1:00AM in Motoring
16 replies 2.2K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Motoring
This is the discussion thread for the following MSE News Story:

"Tesco has reduced petrol prices for a second time in a week, while Asda, Morrisons and Sainsbury's have also cut costs ..."
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Replies

  • michaelsmichaels Forumite
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    Sorry Helen but this is lazy - you have basically published the petrol retailers version of why pump prices have not fallen without looking at how much the exchange rate has actually moved during the period. As journalists I would expect you to check this out rather than just publish the industry lobby group output :(
    I think....
  • redpolaredpola Forumite
    43 posts
    "The industry points out that some 60% of the pump price is accounted for by fuel duty and VAT, with another 10% going on delivery costs, marketing and profit margins."

    So the delivery/marketing overheads won't change, but that the above is used to defend high prices implies that fuel duty and VAT are at a flat rate (and thus won't drop as barrel prices drop)?
  • Not in my area, Tesco £1.38 and Maxol is £1.34
  • In May this year, £1 was worth $1.67. Right now, £1 is worth $1.63. That is a 2.4% drop.

    Also in May, Brent Crude was $125 a barrel. Now it is trading at $108 a barrel, that's a 13% drop in price.

    West Texas Crude Oil has fallen by even more since May (a 25% drop in the price per barrel).

    The exchange rate argument DOES NOT HOLD UP!

    Admittedly, other costs might have risen for those companies involved in this oil supply chain during this time - however May was only 3 months ago so I fail to see this.

    Surely this is just another example of Joe Public being trampled on yet again for the sake of big business boosting their profit margins. Should we really be surprised in this greed-orientated world!
  • AHARAHAR Forumite
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    redpola wrote: »
    So the delivery/marketing overheads won't change, but that the above is used to defend high prices implies that fuel duty and VAT are at a flat rate (and thus won't drop as barrel prices drop)?

    Fuel duty is a flat rate - 57.95p/litre
  • CrabmanCrabman Forumite, Board Guide
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    Not in my area, Tesco £1.38 and Maxol is £1.34
    Tesco haven't cut fuel prices in our area either. Nice piece of marketing by Tesco though - they've got free advertising and people visiting their stores in the hope of find cheap petrol.

    The truth is, in our area, fuel retailers appear to be fixing prices as part of an illegal cartel.

    A 10 mile drive (to a very small town) sees a possible saving of around 5p/litre. Quite why this should be the case is a mystery.
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  • dbt1910dbt1910 Forumite
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    Eighth Anniversary Combo Breaker
    Interesting news, but the staff at our local Tesco (Uttoxeter) were changing the filling station signs to effect a 1p per litre increase at the pump on Saturday (13.8), so that diesel was 140.9 pence per litre, with a corresponding increase in the cost of petrol!
    I'm not aware if they've decreased prices since then.
  • PsiDOCPsiDOC Forumite
    348 posts
    AHAR wrote: »
    Fuel duty is a flat rate - 57.95p/litre

    Plus 20% VAT. Yes you DO get charged vat on the fuel duty.
    Which makes it 69.54p

    You have to give the government credit for that sneaky move. Taxing you on the tax is absolutely priceless isn't it?

    PsiDOC
    Near a tree by a river, there's a hole in the ground.
    Where an old man of Aran goes around and around....

  • marmsmarms Forumite
    295 posts
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    Tesco in Banbridge have just put there petrol up a penny a litre at the weekend!
  • Kilty_2Kilty_2 Forumite
    5.8K posts
    130.9 at my local Tesco - don't know about Asda/Morrisons
This discussion has been closed.

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