Fuel price rises

203846930

Has anyone else noticed that fuel prices are creeping up at 1 or 2p a week?

We walk past a station a couple of times a week and the price of diesel has gone up 10p at least in the last 4 weeks since the start of the year.
This is going to have a knock-on effect with all the prices in the shops as everything still travels on the back of a diesel engine.

TomokoAdhami

Probably, retailers overcharging drivers by 2p-a-litre and calling it 'lockdown bonus'. Or maybe they want drivers to switch to electric vehicles. 

Penguin_

Consumption is down so prices go up a bit to cover this.

Flight3287462

TomokoAdhami said:

Probably, retailers overcharging drivers by 2p-a-litre 

Why would you call it overcharging?  The filling station needs to make money and if sales are down ~50% then they will need to charge more to break even and make their margin.  Just basic economics.

Plus the price of oil is up just under $10 in the same period.

scrappy_returns

Fuel prices are still below what they were before lockdown. Simply supply and demand.

Car_54

Hunyani_Flight_825 said:

TomokoAdhami said:

Probably, retailers overcharging drivers by 2p-a-litre 

Why would you call it overcharging?  The filling station needs to make money and if sales are down ~50% then they will need to charge more to break even and make their margin.  Just basic economics.

Plus the price of oil is up just under $10 in the same period.

Don't basic economics say that if demand is down prices go down, to stimulate sales?

203846930

the price of oil is up just under $10 in the same period.

If that were the criteria for the price at the pump changing then the same would happen if the price of oil fell but that never happens.

glennevis

When I walked past my local filling station this afternoon I was surprised to see petrol was more than diesel. When did that happen?

ontheroad1970

glennevis said:

When I walked past my local filling station this afternoon I was surprised to see petrol was more than diesel. When did that happen?

It used to happen all the time.  Albeit a long time ago.

macman

Car_54 said:

Hunyani_Flight_825 said:

TomokoAdhami said:

Probably, retailers overcharging drivers by 2p-a-litre 

Why would you call it overcharging?  The filling station needs to make money and if sales are down ~50% then they will need to charge more to break even and make their margin.  Just basic economics.

Plus the price of oil is up just under $10 in the same period.

Don't basic economics say that if demand is down prices go down, to stimulate sales?

I don't see that working at present, because if no-one can drive anywhere other than for business or essential shopping, then they're not going to be filling up much, even if prices were to drop. It's not as if you can take it home and stockpile it (at least I hope not).
Lockdown has massively reduced demand and mileage, as the insurance claim figures show.

203846930

It has been almost a full year since I last filled the tank on my Dacia Logan, fair enough I have only done about 480 miles in that time but still.