UK Petrol Market Working Well

wotsthat

http://www.bbc.co.uk/news/business-21258809

A study of the UK petrol and diesel market by the Office of Fair Trading (OFT) has said little action is needed.

"The evidence gathered by the OFT suggests that at a national level, competition is working well in the UK road fuel sector," its report said.

It found the UK has some of Europe's cheapest fuel prices before tax.

http://www.oft.gov.uk/news-and-updates/press/2013/12-13#.UQj7hGPqL0s

They did find that motorway fuel was expensive (no sh*t) and were worried that prices were only visible after leaving the motorway. Seems like a statement of the bleeding obvious - who turns up at a motorway services expecting cheap fuel or food?

grizzly1911

Quentin Willson, spokesman for the pressure group FairFuelUK, said he was shocked.
"Every motorist and business in Britain instinctively knows that 'something's not right'," he said.
"The OFT appears to have failed to address the key issues of : why diesel is more expensive than unleaded in the UK when this is not the case in Europe, why falls in the oil price take so long to be reflected at the pump, and why there are such variations in price, often from the same branded forecourts, within the same area."


http://www.bbc.co.uk/news/business-21258809


Summed it up for me.


If you don't raelly lift the drains and look for problems you won't find one.

SailorSam

I don't know what difference it would make to have a sign up on a motorway pointing out that the fuel may bemore expensive. Everyone knows that already.

StevieJ

I should imagine supermarket forecourts have been the governor against large oil company excess.

molerat

wotsthat wrote: »

http://www.bbc.co.uk/news/business-21258809



http://www.oft.gov.uk/news-and-updates/press/2013/12-13#.UQj7hGPqL0s

They did find that motorway fuel was expensive (no sh*t) and were worried that prices were only visible after leaving the motorway. Seems like a statement of the bleeding obvious - who turns up at a motorway services expecting cheap fuel or food?

Again a "stupid tax". I plan my journey. My sat nav shows all the Tesco, Asda and Morrisons on the route and it is surprising how many there are just off the motorway ....... cheap(er) petrol and food. The only problem I find is the English idea of "24hr opening".

Graham_Devon

Heard a couple of people suggest this investigation ignored the bits needing investigation.

Wonder if it actually did? It's not exactly stupid people claiming they only investigated what they wanted to investigate to pacify us by suggesting it's all OK.

wotsthat

Graham_Devon wrote: »

Heard a couple of people suggest this investigation ignored the bits needing investigation.

Wonder if it actually did? It's not exactly stupid people claiming they only investigated what they wanted to investigate to pacify us by suggesting it's all OK.

They have a published scope - it wasn't a secret..

The OFT examined a number of specific concerns that had been raised about the road fuel sector, including:

Differences in pump prices between neighbouring towns - The OFT found that petrol and diesel tend to be cheaper in local areas that have a greater number of local retailers, in particular areas where there are supermarket forecourts.

Differences between urban and rural areas - The OFT's analysis found that in August 2012, for example, petrol was around 1.9ppl more expensive and diesel around 1.7ppl more expensive in rural areas than in urban areas. There appear to be a number of factors which account for these differences including lower throughputs per forecourt, fewer competitors (including supermarkets) within a local area, and higher transport costs for getting fuel to rural forecourts.
Independent dealers' ability to compete fairly in the market - The OFT examined claims that supermarkets' and major oil companies' practices may be making it more difficult for independent dealers to compete with them. However, the OFT has not, to date, received evidence of any anti-competitive practices being used against independent dealers that might lead it to take enforcement action. The OFT will continue to consider any credible evidence it receives and consider taking action where practices appear to breach competition law.

Rocket and feather' pricing - The OFT investigated the widely held perception that pump prices rise quickly when the wholesale price goes up but fall more slowly when it drops. It analysed the relationship between retail and wholesale prices at both a national and local market level, as well as the relationship between crude oil prices and wholesale prices at a national level, but found very limited evidence to support such claims.

I think it's the final part of the scope that causes most consternation i.e. the perception that prices are quick to rise but slow to fall. So nothing ignored although, for the conspiracy theorists, note that they fall short of saying no evidence was found to support the perception.

wotsthat

molerat wrote: »

Again a "stupid tax". I plan my journey. My sat nav shows all the Tesco, Asda and Morrisons on the route and it is surprising how many there are just off the motorway ....... cheap(er) petrol and food. The only problem I find is the English idea of "24hr opening".

Plenty of people willing to pay that tax - just take a drive down the M5 in the summer - many queues are caused by people trying to get into already overflowing services. Sure some are just stopping for a pit stop and a leg stretch but the shops are full and so is the petrol station.

Works for me - I tend to think that stupid people make a disproportionate contribution to company profits and help keep prices down for the rest of us.

grizzly1911

Interesting Telegraph item

Ministers to blame for high fuel prices, says competition watchdog

Britain would have some of the cheapest fuel prices in Europe if ministers had not raised taxes by such large amounts over the last ten years, the competition watchdog has said.

Petrol prices rose by 38 per cent between June 2007 and June 2012, while diesel prices went up by 43 per cent.
It comes after ministers yesterday indicated that they believe motorists are being “ripped off at the petrol pump”.
Robert Halfon, the Conservative MP for Harlow, said it was “disappointing” that the watchdog has decided not to hold a full inquiry.
The RAC urged the OFT to “reconsider the decision” and said motorists view UK fuel prices as a form of “day-light robbery”.
Mr Halfon said that families across the country are “crushing families across the country.”
“It is disappointing that they will not hold a full inquiry,” Mr Halfon said. “For example, they admit that there is a problem with poor competition in many towns, such as Harlow - which keeps prices high at the pump - but they are not taking action."


Not surprising there has been a 40% rise in prices when the helped by the £/$ devalution, in part prompted by the government too, meaning crude is 25% more expensive in £..


http://www.oanda.com/currency/historical-rates/


http://chartsbin.com/view/oau

angrypirate

I dont know why these questions are even being asked. Anyone who works in the Oil and Gas business is aware that petrol before tax in the UK is amongst the cheapest in Europe.

Diesel is more expensive in the UK than in Europe because its taxed more than petrol, whilst in other countries it isnt. Here it used to bes seen by the government as dirty HGV fuel so was taxed more. Now its a lot cleaner and actually more efficient than petrol.

Petrol prices dont rise and fall with crude oil because its just not that simple. Crude oil is bought months in advance of it being available to the refineries. Some crudes are heavy and wont produce that much petrol as they contain high amounts of asphaltenes, metals and sulphur, whilst others are light and sweet, containing a high proportion of petrol and diesel cuts with little sulphur and metals. Refineries in the UK are making money, but not much.

Margins can be so tight, there have been times that when you buy £10 of petrol and a Mars bar, the petrol station has made a bigger profit on the Mars bar.

The_White_Horse

nothing wrong with the petrol market, just the massive amount of tax on it.

tax tax tax