Petrol now 99.7p a litre

lisyloo

is that evidence of collusion?

No.
But there is overwhelming evidence that people don't always go for the cheapest prices - although it is a big factor for many.

NorthFin

I am waiting until I see 99.9p or less before refilling, I have quarter of a tank left.

ging84

NorthFin wrote: »

I am waiting until I see 99.9p or less before refilling, I have quarter of a tank left.

better make sure you walk everywhere for a couple more months

CLAPTON

lisyloo wrote: »

No.
But there is overwhelming evidence that people don't always go for the cheapest prices - although it is a big factor for many.

The issue was whether the local garages collude to set the price at a high price.
The 'evidence' was that local prices tend to be the same

If all other things are equal, for undifferentiated products like petrol, then most (but not all) people will buy the cheapest.

This will lead to most local garages having similar prices: because if one charges a higher price most (but not all) people will go elsewhere.

Now I accept that if all other things are not the same e.g. location, side of the road, inbuilt hatred of a particular brand, perceived rudeness of the staff, location of convenience store, attractive cashiers, loyalty card, indifference to price (maybe company petrol card/spouse/parents pays the CC bill) etc then people may make a choice to pay more for the product.

However I don't think this shows that the petrol stations have colluded to maintain a high price.
That's not to say they haven't so colluded, but merely saying that similar prices is insufficient evidence to draw that collusion.

That's all I meant. I thought that was obvious.