How does fuel pricing work?

JustAnotherSaver

Bit more to it than appears in the thread title.

So around here you have a Shell and BP that are basically opposite each other, owned by the same people. They used to be the cheapest in the area some time ago (aside from supermarket) but now they've gone totally the other way.

When this whole Russia thing kicked off they were the first to shoot their prices right up pretty much the next day. Other stations in the area took about a week & even then they only put theirs up a bit.

These two then shot theirs up again twice in 2 days. Again, others took a few more days.

On the way home tonight I see they've gone from about 1.72 diesel to 1.91. Diesel is now 20p more than unleaded with them. At a nearby Texaco diesel is only 8p dearer than unleaded.

And the other Shell in the area ... considerably cheaper than this particular Shell, and with a much smaller gap between the two fuels too. This cheaper Shell is also the last stop before the motorway which I assume would give it reason to be higher (it used to be).

Or is it the Volkswagen syndrome - same stuff but we'll just slap an extra wedge on it just because?

motorguy

Its profiteering. 

laidbackgjr

The differential between petrol & diesel is growing as the UK imports diesel from Russia but doesn't import petrol from Russia, so supply of diesel is likely to be more challenging than petrol as sanctions etc impact directly on diesel supply.

jimbo6977

Branded filling stations will sell a lot to fuel card holders, who normally pay less than the advertised price.

Then you have those people who go to BP for the Nectar points.

Shell stations in some parts probably still sell loads of high octane stuff to older drivers due to Honest John's obsession with that particular product.

Thrugelmir

laidbackgjr said:

The differential between petrol & diesel is growing as the UK imports diesel from Russia but doesn't import petrol from Russia, so supply of diesel is likely to be more challenging than petrol as sanctions etc impact directly on diesel supply.

Both are refined from the same basic product, i.e. crude oil. 

ontheroad1970

jimbo6977 said:

Branded filling stations will sell a lot to fuel card holders, who normally pay less than the advertised price.

Then you have those people who go to BP for the Nectar points.

Shell stations in some parts probably still sell loads of high octane stuff to older drivers due to Honest John's obsession with that particular product.

You get nectar points at Esso now.  Tsco points only available at branches with a Tesco Express attached

Sandtree

Thrugelmir said:

laidbackgjr said:

The differential between petrol & diesel is growing as the UK imports diesel from Russia but doesn't import petrol from Russia, so supply of diesel is likely to be more challenging than petrol as sanctions etc impact directly on diesel supply.

Both are refined from the same basic product, i.e. crude oil. 

And filet steak and mince beef both come from cow but that doesn't mean they are the same price per kg. 

wongataa

Sandtree said:

Thrugelmir said:

laidbackgjr said:

The differential between petrol & diesel is growing as the UK imports diesel from Russia but doesn't import petrol from Russia, so supply of diesel is likely to be more challenging than petrol as sanctions etc impact directly on diesel supply.

Both are refined from the same basic product, i.e. crude oil. 

And filet steak and mince beef both come from cow but that doesn't mean they are the same price per kg. 

But diesel & petrol aren't imported from different places.  Oil is brought in and refined into diesel and petrol in the UK.  That was the point, not that petrol & diesel have different prices.

Sandtree

wongataa said:

Sandtree said:

Thrugelmir said:

laidbackgjr said:

The differential between petrol & diesel is growing as the UK imports diesel from Russia but doesn't import petrol from Russia, so supply of diesel is likely to be more challenging than petrol as sanctions etc impact directly on diesel supply.

Both are refined from the same basic product, i.e. crude oil. 

And filet steak and mince beef both come from cow but that doesn't mean they are the same price per kg. 

But diesel & petrol aren't imported from different places.  Oil is brought in and refined into diesel and petrol in the UK.  That was the point, not that petrol & diesel have different prices.

UK also imports refined products not just crude oil (plus not all crude oil is equal) as per:

The Department for Business, Energy and Industrial Strategy (BEIS) said the UK imports 13% of its diesel from Russia, and none of its petrol.
https://www.theguardian.com/world/2022/mar/08/no-10-plans-cut-russian-fossil-fuels-use 

laidbackgjr

The UK imports & refines crude oil from a variety of sources, but UK owned North Sea covers most of the requirements, most of the crude oil refined in the UK is 'light' crude oil, which when refined generates lots of petrol and not much diesel, so the UK refineries can supply UK petrol demand, but can't refine enough diesel - hence we import diesel from other locations - including Russia - where they refine 'heavy' crude oils which when refined generate less petrol and more diesel.

DB1904

Having bought the oil a x cost they work out how far they can have your pants down and charge accordingly.