MSE News: Petrol market 'working well', despite high prices

adamc260

Who are these monkeys, doing a 5 month investigation only to tell us it's caused by tax?

When the cost of oil goes up forecourts shoot their prices up immediately, oil had dropped for a period of time and only due to pressure from fuel organisations did they drop by a few pence. The government passed on a 'scrap in tax' only for it to go up a few pence a week or so later anyway.

There is absolutely no reason for a motorway service station to charge MORE for fuel than any other station.. they're generally located on main roads anyway so it's not like the delivery lorry has to go out of it's way to get there!? It's purely done for greed...

If Venezuela can sell petrol at 8ppl and Egypt at 9ppl... why do we need to pay £1.32 +

When we've got organisations like this 'speaking for the nation' we really are screwed.

kar999

The OFT's two recent reports about petrol prices and Banks current accounts* show it's a a toothless tiger and about as much use as an ashtray on a motorbike.

The banks and the oil companies however seem to have sucessfully managed to get the OFT in their pockets (alledgedly).

The OFT should be ashamed of itself and abolished.

*http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/9825998/Banks-make-average-139-a-year-on-each-current-account.html

Martin Lewis, founder of MoneySavingExpert.com, which has campaigned for a more competitive current account market, said it was a "depressing read".
"It's just review after review after review," he said. "The OFT wimped out four years ago and to hear this now is just depressing."

steve-L

As I said earlier, a lot of people on MSE stated they couldn't be bothered or other reasons to buy cheaper fuel.
https://forums.moneysavingexpert.com/discussion/4416457

Who are these monkeys, doing a 5 month investigation only to tell us it's caused by tax?

The OFT, its their job do investigate trading not TAX!
What they found was the price of fuel was not due to unfair practice but tax...

When the cost of oil goes up forecourts shoot their prices up immediately, oil had dropped for a period of time and only due to pressure from fuel organisations did they drop by a few pence.

Most commodities do the same, when did the price of bread go down due to the wheat price being depressed when the Russians flooded the market?

There is absolutely no reason for a motorway service station to charge MORE for fuel than any other station..

Did you read the thread?

If you sell ice cream and you pay £50,000 a month rent for your shop in a service station can you sell ice-cream at the same price as the shop pays nothing as it owns the shop?

Decent expresso coffee even retail costs 0.5€ a pack (good for 50 shots) in Italy.... so lets round up to 10p/shot...wholesale.. can't be more than half..
Star-Costa Co charges say £2 a 2 shot up so they are making a markup of £1.90 for 10p's product. Why are you not outraged? The service station is making say 10p/litre on something it pays £1.20/l

SCO

So 30 million drivers must be wrong then!!

Did we really expect anything else they are all in each others back pockets.

SCO

minislim wrote: »

This is where tesco now seem to let themselves down. they used to have a price promise hat they would be cheaper on fuel than nearby petrol stations. this doesnt seem to apply anymore.
only sainsburys and asda still seem to try to do their bit by keeping their fuel prices at least a penny cheaper than the others.

not been a great last 12 months for tesco.

their "every little helps" slogan seems to have no real meaning any longer!

unless they really start do something to "help" their business will continue to go downhill.

I e-mailed tesco about their pricing, as within 15 miles two of their stations had a 5ppl diffrence.

They replied that they price match the nearest station.

This is standard practice in all companies.
(apart from BP they just seem to like charging more regardless)

adamc260

steve-L wrote: »

The OFT, its their job do investigate trading not TAX!
What they found was the price of fuel was not due to unfair practice but tax...

A quick look on google shows that for Fuel totaling £100 (approx) the duty is £43.61 and vat £16.67 leaving the actual cost of the fuel at £39.73.

You hardly need to do an 'investigation' to work out the biggest percentage was to the government and therefore that is the issue for high fuel prices.

source: http://www.thisismoney.co.uk/money/cars/article-1633430/Petrol-diesel-tax-costs-calculator.html

taxiphil

steve-L wrote: »

The tanker has nothing to do with it ... the issue is the rent they pay for that service station to the 'hospitality company' that owns the service station.

But is it actually true that motorway prices are justified by huge rents?

If so, their excuse has changed.

Years ago they used to blame it on the fact they were required by law to be open 24 hours, meaning higher running costs. That was until Tesco and Asda starting opening their stores (and petrol stations) 24 hours without any increase in prices to customers, exposing their argument as nonsense.

steve-L

adamc260 wrote: »

A quick look on google shows that for Fuel totaling £100 (approx) the duty is £43.61 and vat £16.67 leaving the actual cost of the fuel at £39.73.

You hardly need to do an 'investigation' to work out the biggest percentage was to the government and therefore that is the issue for high fuel prices.

source: http://www.thisismoney.co.uk/money/cars/article-1633430/Petrol-diesel-tax-costs-calculator.html

That was known already... and indeed its actually far worse because various taxes have already been paid well before the oil becomes fuel! Overall it's about 70% of the pump price is tax in one form or another.

However addressing TAX is not in the remit of the OFT ... are the practices unfair is.... HOWEVER ... the fact that the report states that Tax is the biggest contributor is at least pointing the finger in the correct place.

Everyone is too keen to blame the oil companies for the price of petrol and as several people on this thread have pointed towards 'price fixing' or 'non competitive practices'.

The OFT report says that with the exception of motorway service stations this is not the reason, Tax is.... so if people want someone to blame then blame the government(s).

Compared to other forms of energy, such as utilities pump sales are actually competitive hence the differences in prices... however I really have no sympathy for those complaining about petrol prices on motorways being higher... they know it so why fill up on motorways???? I know a bag of crisps in WH Smiths on Waterloo station is at least double the price in Sainsbury's across the road from Waterloo.

When anti-competition law came in there were two areas excluded... pharmaceuticals and books. The former I can understand, the latter because the WH Smith (son) was an MP at the time and lobbied against it!

WH Smith to continue the example actually target consumers that have no option... service stations, hospitals, rail stations, airports etc. and inflate their prices accordingly according to the lack of choice the consumer has. Its a bit harder to leave a hospital than plan to fill up in a service station on a motorway, indeed I don't remember the last time I did. I stop at them frequently having a 3 yr old.... but I never buy fuel there!

Like in the thread I asked if people would cross the road for 1p/l off, many people just couldn't be bothered... Don't people who fill up at motorway service station deserve to be charged what they are.... if they can't be bothered to fill up elsewhere???

All in all I do agree, a waste of tax-payers money since even if they were guilty of price fixing its lost in the 70% tax! However why are people complaining why diesel is higher than petrol? its nothing to do with the oil companies and everything to do with TAX.

The thing is everyone complains about price but few people can actually be bothered to find the cheapest (from the quick straw poll)....

steve-L

taxiphil wrote: »

But is it actually true that motorway prices are justified by huge rents?

They don't have to justify it.... they can charge what the like, its a free market!

However .... perhaps the big issue is that you have to pull in BEFORE
you see the price. In France you have signs on the autoroute saying exactly the price for the next 4-5 service stations and the distance.

We have signs saying what type of coffee/burger joint is available but not fuel prices!

Gilbert2

steve-L wrote: »

The tanker has nothing to do with it ... the issue is the rent they pay for that service station to the 'hospitality company' that owns the service station.

!

How do you know what the property/ownership arrangements of these companies is?

Some service stations have nothing other than fuel to sell and instore goods with nothing else on that site.

Yet they will still have high fuel prices despite probably owning the land.