Petrol Price Fixing.. Proof.

[Mr Nicey]

Hi Rob,

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Cheapest stations within 5 miles of KT15 for Unleaded

131.9p
Tesco Addlestone

Station Road, Addlestone, KT15 2AS

Tesco, 1.59 miles away, last updated on 3 April

131.9p
Tesco Brooklands Extra

Barnes Wallace Drive, Brooklands, Weybridge, KT13 0XF

Tesco, 1.77 miles away, last updated on 3 April

131.9p
Shell Ottershaw

Guildford Road, Ottershaw, Chertsey, KT16 0PG

Shell, 2.48 miles away, last updated on 2 April

131.9p
Shell St Georges

Brooklands Road, Brooklands, Weybridge, KT13 0RP

Shell, 2.55 miles away, last updated on 2 April

131.9p
Sainsburys Chertsey

Heriot Road, Chertsey, KT16 9AG

Sainsburys, 2.77 miles away, last updated on 3 April

 

[MOCAŠ]

Price fixing, or price matching? The supermarkets make no secret of indulging in the latter practice, to the extent that Sainsbury's run advertisements claiming that their prices match Tesco's.

 

[KillerHERTZ]

Petrol stations have always had the same prices in the same area have they not? Wish petrol was as cheap around here as yours!

 

[Mr Nicey]

Fixing.

 

[markjay]

Price fixing, or price matching? The supermarkets make no secret of indulging in the latter practice, to the extent that Sainsbury's run advertisements claiming that their prices match Tesco's.

True... I am sure some of you will remember the Esso commercial from the mid-nineties, with the Esso tiger prowling at night and checking petrol stations prices, the slogan was something to the effect that Esso monitors all of the other petrol stations in the area and matches their price...?

 

[Sp!ke]

Its not the retailers fixing prices but the hedge fund operators and ship brokers with tankers waiting anchored offshore until the price is right.

In 2008 Oil was $121 a barrell (the same as it is now) yet we didnt see nearly the same price at the pump. Even when you factor in the weaker pound, the sums still dont add up.

 

[Cabe]

Esso reigns in the Pricewatch tiger - Forecourt Trader

Sadly this hasn't been the case for some years.

 

[markjay]

I remember listening to a lecture on world economy in the early eighties... there was some of the usual OPEC arm-wrestling going on, and oil prices went up from $25 a barrel to $30 a barrel.. the lecturer said it was an explosive situation because if the price of a barrel will hit $50 the world's economy will collapse...

Now I don't know how much is $50 in today's money, but the lecturer was very nearly right on both counts... the price of oil did go up and the world's economy did (almost) collapsed... though it was the banks that did it rather than OPEC.

 

[Deleted member 11979]

As with any business they charge as much as they can possibly get away with, and why wouldn't they?

For example, there is a Tesco in Tiverton (small town - little competition) that charges 2 - 3 p per litre more than Tesco in Exeter (12 miles away) where Sainsbury's are aggressive with petrol prices.

 

[verytalldave]

Its not price fixing, its just all the stations in an area more or less making sure prices are all "competitive".
Remember, the vast majority of fuel retailers are privately owned and they are not tied to their supplier. Think of fuel stations like privately run pubs. Each has a contract and an obligation to only sell one brand of fuel, but the price they sell it for is entirely at the discretion of the owner of the site. Most, if not all, will pitch their prices to give a viable operating margin, but still to remain competitive locally.
I have known quite a few owners over many years, and believe me, their margins are incredibility low. You rarely get a privately owned fuel station within a mile or so of a supermarket outlet, and those that are, are were probably there before the supermarket. Most close to supermarket outlets close eventually.
And don't think the supermarkets collaborate in any way with each other. They are very competitive and price their fuels to undercut rivals wherever possible.
If you really want to look for a whipping boy in the fuel price stakes look no further than the Chancellor of the Exchequer.
That's where peoples anger should be vented.

 

[219]

Not only that , but petrol is often used by supermarkets as a 'loss leader' to attract people to do their shopping with them ( hence the 5p/litre discount vouchers when you spend £50 in store etc. ) .

Supermarkets make next to nothing on petrol , attracting people to shop in store is where the profits lie .

Similarly , you don't get petrol stations which just sell fuel , oil and a few car parts anymore - they all have mini-supermarkets indoors as that is where the operators make their money .

 

[BTB 500]

Just look at the number of fuel forecourts that close down every year. That wouldn't be happening if they were profitable.

 

[markjay]

Just look at the number of fuel forecourts that close down every year. That wouldn't be happening if they were profitable.

True... especially as they seem to either stay derelict, or get used as car parks or car wash, i.e. definitely not closed down due to the value of the ground for redevelopment etc.

 

[Sp!ke]

I think that because the land has been used a petrol station, the land is effectively a brown field site and developing the land into properties probably requires a few extra hoops to be jumped through with extra costs involved.

 

[s88]

"True... especially as they seem to either stay derelict, or get used as car parks or car wash, i.e. definitely not closed down due to the value of the ground for redevelopment etc. "

Think they have isues with the old tanks underground, costs a few quid to make safe for building I think.

 

[219]

They usually dig them out , then infill .

Thinking about it , probably would be easy to just pump in concrete , sand , whatever to fill the void .

 

[Deleted member 11979]

One down the road from us closed and there are now houses on it, and yes the tanks were removed in this instance as me and my daughter stood and watched.

We were only too happy to see houses as the petrol station had been an eyesore for years whilst bribes were handed out, ooops, I mean hoops jumped through, to obtain permission.

 

[Ade B]

The reverse happened round me - during the housing boom petrol stations we're closing down all over London as their real estate value made it worth while to put up flats on what were often pretty prime sites. Happened all over Islington when we were there.

The BP garage round the corner shut down and reopened about a year ago as obviously the numbers no longer stacked up.. One up the road has just completed as ropy looking developer housing...

 

[artyman]

Whilst we might moan about the current price of fuel, in real terms it's cheaper now than it was in the early 1960's when it was about five shillings a gallon (20p for the youngsters) relative to the average salary in those days.

 

[The Boss]

my fathers business in the UK is in petrol stations and fuel distribution up in the west midlands.

He recently redeveloped the site near RAF Cosford, and the pure reason, is that the profit on fuel is minimal, and we now have an award winning Budgens store onsite.

the same is planned for other sites he owns, and the logic is even though prices are high, and retailers are making more money, % wise, we are making less, and you are correct, shop sales is what counts today!

For example, we were debating recently on how to petition on the govt, and it is very difficult.

The govt, after last round of fuel protests, made it illegal to road block outside a refinery, and on top of that, the govt own a % of the fuel on site, thus in emergencies, this is their fuel for their use, to use or to sell.

One example was to get all retailers to agree refuse to sell fuel for a period of time, and this would bring the govt to their knees, but again, this would probably bring most fuel stations into administration.

The retailer association is on the public's side, but the govt are the ones that need to rethink their policy!! ASAP!!