Petrol now 99.7p a litre

Generali

cepheus wrote: »

Exactly, that's why I'd like to see what the margin is.

Around the New Year the South West has recorded the lowest price for unleaded at 116.1 ppl. So I don't buy the delivery nonsense. It's a reason why small outlet prices in the country are consistently higher yes.

Quentin Wilson, said [I assume he means after tax]

however it says here

http://www.bbc.co.uk/news/business-30783378

Also, petrol stations won't buy all their fuel at spot prices. Most will have some sort of forward buying program in place to mitigate swings in prices.

Economic theory suggests that if the price of input rises, some of the extra cost is passed on to consumers and some is taken as lower profits. Similarly as costs fall, profits rise a little and prices fall a little.

antrobus

cepheus wrote: »

Exactly, that's why I'd like to see what the margin is. ....

According to the BBC, 7.1 per litre.

At least that's what it was in October 2011 when Brent Crude was about $110 and cable was 1.60 and the average pump price for petrol was 134.1p per litre.

http://www.bbc.co.uk/news/business-15462923

If you take that breakdown of the cost of petrol, and recalculate it for Brent Crude at $50 and cable at 1.52, you come up with a price of 106p per litre. Funnily enough my local filling station has a pump price of 105.8p per litre. So I'd submit that margins haven't changed one little bit.

CLAPTON

jjlandlord wrote: »

The reason for price clusters in the same area is pretty obvious: No-one has an interest in a price war and thus they all align at close to the same price (not exactly the same otherwise the collusion would be too obvious).

if there are several petrol stations close together
why would you go to the dearest?

why wouldn't you go to the cheapest?

how would the dearest stay in business?

PaulF81

Generali wrote: »

According to this mob:

http://www.petrolprices.com/the-price-of-fuel.html

That's a fall of about 33p/litre in the past year. Given that about 3,500,000,000 litres of petrol and diesel are sold each year, that's an injection of about £1,150,000,000 into the pockets of consumers and businesses, a colossal amount of money. Plenty of that money will find itself into the pockets of the working poor, the group that has been harder than any other by the GFC having paid for but not taken part in bailouts etc.

True, but how much duty has been lost by the treasury?

Graham_Devon

PaulF81 wrote: »

True, but how much duty has been lost by the treasury?

None - Fuel duty is static.

lisyloo

why would you go to the dearest?

Because they are on the main rd.
Because they sell milk, soft !!!!!!, have an ATM, toilet, sell coffee and bacon rolls etc.

why wouldn't you go to the cheapest?

big queue at the pumps
big queues to pay
no pay at pump
not open before 10 on a sunday (I do have a real situation in mind).

how would the dearest stay in business?

because they offer services that people want and stay open 24/7

System

I'm lazy enough to go to the Esso next door to the Sainsburys because the Sainsburts is behind one extra set of traffic lights. 60p feels worth it.

lisyloo

I ride a motorbike and the petrol cost (small quantity) is less important than facilites (such as somewhere warm to wait indoors, hot drinks) especially in the winter.

CLAPTON

lisyloo wrote: »

Because they are on the main rd.
Because they sell milk, soft !!!!!!, have an ATM, toilet, sell coffee and bacon rolls etc.

big queue at the pumps
big queues to pay
no pay at pump
not open before 10 on a sunday (I do have a real situation in mind).

because they offer services that people want and stay open 24/7

is that evidence of collusion?

CLAPTON

Joeskeppi wrote: »

I'm lazy enough to go to the Esso next door to the Sainsburys because the Sainsburts is behind one extra set of traffic lights. 60p feels worth it.

is that evidence of collusion?