How does fuel pricing work?

troffasky

Don't know why people act all surprised about this, it's how markets work. Fuel retail prices are not regulated, so the retailer charges what they think the market will bear. There is no regulation that requires retail prices be connected to costs.

Have a look at the domestic energy market if you want an idea of what happens when retail prices are regulated.

born_again

Retailer can charge what they want. Of course public can vote with their wheels & go to a cheaper place.

As a aside. Today, noticed that Sainsburys are charging the same price as branded stations in our area. Thankfully Morrisons are 8p a ltr cheaper.

JustAnotherSaver

Yeah this shell isn't as busy as it once was

I wonder why. 

I used to go to Shell for their points system until they became dearer than Texaco. Now I go to them for theirs. I felt my cars always ran better on Shell (not premium) but money is money. 
Its getting to the stage I may break my rule of no supermarket juice and go to the cheapest in the area - Asda. 

This shell is 1.91 for diesel, completely missing the 1.80s.
Texaco I think said 1.71 this morning. 
The other shell I think was 1.72 (one near motorway). 
Others like Esso are in and about these, so the 1.91 one stood out a mile. 

Total chancers. I just think those filling up there must either be loaded or really need to plan their route better and use one of the other more reasonable stations. 

Or maybe they're one of those who spend top dollar when they don't need to but then complain of having no money. 

Penguin_

Supermarkets buy their stock 2-3 weeks in advance, before it gets delivered so that's why Tesco will be so much cheaper than an independent forecourt.

JustAnotherSaver

^^ I tend not to ask about supermarket fuels though as they are generally cheaper than the rest anyway. Plus it's been about 15yrs since I used supermarket fuel after getting my card cloned.

Anyway, just posting back as I read in the local paper today as they'd done a report on fuel. The station i mention as being expensive are officially the most expensive in the area for unleaded and diesel by far. 12p per litre dearer than the next cheapest on diesel and 5p dearer than the next place on unleaded.

Which is funny because today they've dropped their price 6p to 1.85 so now they're 'only' 6p dearer than the next most expensive station in the area.

Looks like they didn't like the bad press.