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Diesel price


dave mackie

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8 minutes ago, MtB said:

 

 

This is odd isn't it? Supermarket fuel used to be the cheapest around and often by a good margin. Not so any longer. Sainsbury's in Newbury is the most expensive fuel for miles around. Oddly though, Sainsbury's by the west Reading exit of M4 and Asda in Earley, Reading are cheapest I ever see, but only by a penny or so.

I wonder if the supermarkets are relying on customers to automatically assume that they are the cheapest, and not checking out other sellers?

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28 minutes ago, MtB said:

 

 

This is odd isn't it? Supermarket fuel used to be the cheapest around and often by a good margin. Not so any longer. Sainsbury's in Newbury is the most expensive fuel for miles around. Oddly though, Sainsbury's by the west Reading exit of M4 and Asda in Earley, Reading are cheapest I ever see, but only by a penny or so.

Supermarket prices, and hence those of others, were influence hugely by competition with Asda who usually led the way on low fuel prices. It seems that the new owners of Asda akready owned the largest fleet of petrol stations in the country. The potential conflict of interest was raised by motoring bodies, but was dismissed. So now we see the likes of Texaco, not noticeably keen to be highly competitive on price in the past, being amongst the first in the slow bicycle race to reduce fuel prices. 

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26 minutes ago, Sea Dog said:

Supermarket prices, and hence those of others, were influence hugely by competition with Asda who usually led the way on low fuel prices. It seems that the new owners of Asda akready owned the largest fleet of petrol stations in the country. The potential conflict of interest was raised by motoring bodies, but was dismissed. So now we see the likes of Texaco, not noticeably keen to be highly competitive on price in the past, being amongst the first in the slow bicycle race to reduce fuel prices. 

 

The cheapest petrol round here is an Asda (standalone, not part of a supermarket complex) and has been since they took it over several years ago, it's usually 10p or so cheaper than the BP up the road.

 

The only problem is that it's just off the sliproad onto the A40, and it was so popular when prices were at their peak a few weeks back that the queues backed up onto the Target roundabout and gridlocked it... 😞

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4 hours ago, davem399 said:

I wonder if the supermarkets are relying on customers to automatically assume that they are the cheapest, and not checking out other sellers?

I have no direct facts but it may be that the lower prices of supermarkets were achieved through long term contracts - great when prices are rising but very hard when they fall as they may well have to wait until the expiry of the contract before they get a reduction.

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17 minutes ago, Mike Todd said:

I have no direct facts but it may be that the lower prices of supermarkets were achieved through long term contracts - great when prices are rising but very hard when they fall as they may well have to wait until the expiry of the contract before they get a reduction.

Supermarkets sell fuel at low margins because this brings shoppers in who hopefully spend a load in the shop too -- they don't even need to make a profit on fuel then, so they can undercut standalone petrol stations.

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10 minutes ago, IanD said:

Supermarkets sell fuel at low margins because this brings shoppers in who hopefully spend a load in the shop too -- they don't even need to make a profit on fuel then, so they can undercut standalone petrol stations.

They also in some cases give electric away 😁 I was overjoyed to find an empty slot at Tesco's today 🙃

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9 hours ago, davem399 said:

Locally, the expensive fuel is still at the supermarkets.  It’s cheaper by a couple of pence per litre at our Shell and Esso stations.  There was an article on the BBC earlier in the week where the RAC accused the supermarkets of being slow to respond to the drop in wholesale fuel prices compared to other sellers.

Not quite true around ours A ESSO station which was always on the cheaper side was 183.9 for diesel as were Morrisons. However BP and the Independent Shell were more expensive, but they always are. Can't remember last time I visited a BP station. Lowestoft is always a couple of p less than Beccles some 5 miles away

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On 07/08/2022 at 13:46, Athy said:

>> I do think that the point nine is rather silly these days.

 

I've always thought it was silly. I've also wondered whether it was actually legal to offer a price that you cannot actually pay (presumably it is, though).

 

If you buy say 10li at £1.80 rather than £1.79.9 the difference is a whole penny.  Even if you buy 100 litres, it'll cost a whopping 10p more.

 

As the Memsahib says, she wouldn't cross the street to pick it up.

 

 

 

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8 hours ago, IanD said:

Supermarkets sell fuel at low margins because this brings shoppers in who hopefully spend a load in the shop too -- they don't even need to make a profit on fuel then, so they can undercut standalone petrol stations.

Not always the case. Cheapest I know is the independant D A Roberts (Essar) petrol station at Grindley Brook on the Llangollen, last week I saw petrol was 150.9 a litre, I believe it went up to 151.9 today. Beat that if you don't mind the queues.

 

As an aside, it appears that the current wholesale price from Essar Stanlow Refinery is 125.33 plus delivery charges, although D A Roberts have their own large tankers so probably collect their own.

Edited by jam
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17 hours ago, IanD said:

Supermarkets sell fuel at low margins because this brings shoppers in who hopefully spend a load in the shop too -- they don't even need to make a profit on fuel then, so they can undercut standalone petrol stations.

The recent trend has been for the economically inclined to buy groceries at Aldi and petrol at Asda.  This has led to the supermarkets revising their cut-throat pricing strategy.

8 hours ago, jam said:

 

 

As an aside, it appears that the current wholesale price from Essar Stanlow Refinery is 125.33 plus delivery charges, although D A Roberts have their own large tankers so probably collect their own.

That price will exclude the 52.95ppl fuel duty.

The retailer typically has a gross margin of 6ppl, obviously varying depending on its fuel supply agreement and immediate pricing.  So, around £3 or £4 for filling a car or, if you prefer around 4%.  Sales from the forecourt shop have a much higher margin.

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14 minutes ago, Tacet said:

Sales from the forecourt shop have a much higher margin.

 

 

Don't they just! 

 

Starving, I once returned to the till in. BP petrol station having grabbed two bags of crisps after buying some fuel. 

 

I did a double take when she asked me for £3.98. 

 

Yes each bag of crisps was £1.99. Typically 85p in a normal shop.

 

 

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23 hours ago, IanD said:

Supermarkets sell fuel at low margins because this brings shoppers in who hopefully spend a load in the shop too -- they don't even need to make a profit on fuel then, so they can undercut standalone petrol stations.

But not all such filling stations are co-located. Eg in Banbury. First time there we could see the filling sign from the centre and walked to it assuming food would be nearby. Big mistake!

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12 hours ago, Tacet said:

The recent trend has been for the economically inclined to buy groceries at Aldi and petrol at Asda.  This has led to the supermarkets revising their cut-throat pricing strategy.

That price will exclude the 52.95ppl fuel duty.

The retailer typically has a gross margin of 6ppl, obviously varying depending on its fuel supply agreement and immediate pricing.  So, around £3 or £4 for filling a car or, if you prefer around 4%.  Sales from the forecourt shop have a much higher margin.

If the price from Stanlow is 123.55 and excludes 52.95 duty, please explain how D A Roberts sell fuel for 151.9 when based on your observation and Stanlow prices it would cost them 176.50 before adding on their profit margin. It does not add up.

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8 hours ago, David Mack said:

A few days ago I filled the the car here in Wisconsin for €3.799 per (US) gallon. That's about 83p per litre. And the locals think that's expensive!

 A big difference between there and here. Just thinking Why? Is it because the UK refinery’s buy it from say Saudi and the US can produce it’s own? Or is it high taxation from the Government? I wonder what would happen if the UK Government gave the fuel producers a Tax break for a year? Would the cost of fuel drop, so benefiting millions of people?

 

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1 hour ago, PD1964 said:

 A big difference between there and here. Just thinking Why? Is it because the UK refinery’s buy it from say Saudi and the US can produce it’s own? Or is it high taxation from the Government? I wonder what would happen if the UK Government gave the fuel producers a Tax break for a year? Would the cost of fuel drop, so benefiting millions of people?

 

I doubt it (unless a price cap is introduced) but the number of potholes would mushroom!

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1 hour ago, Mike Todd said:

I doubt it (unless a price cap is introduced) but the number of potholes would mushroom!

Obviously oil companies are showing huge profits for the last quarter, so consequently paying more tax(I hope) but it would be good if the Govt gave them a few month Tax break over the Winter and it was reflected in fuel prices dropping. So to help people struggling people over the period. I know it will never happen though.

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4 hours ago, PD1964 said:

Obviously oil companies are showing huge profits for the last quarter, so consequently paying more tax(I hope) but it would be good if the Govt gave them a few month Tax break over the Winter and it was reflected in fuel prices dropping. So to help people struggling people over the period. I know it will never happen though.

So, what happened to the 5p VAT break, then?

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15 hours ago, PD1964 said:

I don’t know please tell me, obviously didn’t effect fuel prices that much.

There was an investigation into whether the fuel duty cut was passed onto consumers and it decided that it was. It just wasn't noticed due to the rapidly rising fuel costs at the time.

 

On the plus side the price of fuel does seem to be falling quite quickly now. Diesel is getting towards £1.70 a litre locally.

 

Which reminds me. We must fill the van up this weekend on our way home. Bank Holiday weekend is sneaking up on us.

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