Question on petrol prices

GJ02 · 24 Feb 2011 at 19:25

Can someone tell me how petrol prices are calculated.
I dont understand how prices of fuel can rise from day to day, when a supermarket or petrol station buys fuel from the supplier.
I was thinking ( which must be wrong ) fuel at a station should only be priced at the price they got it for + whatever markup they add.
ie
tescos buy £15,000 of petrol and sell it at 1.26pl until all that fuel has gone, what i dont understand is how it goes up so much so quickly if the fuel in the tanks at the station is the same fuel that was 2p cheaper yesterday.

how does it work ?

Cosimo · 24 Feb 2011 at 19:26

Ask in Motors, they will like this.

badcompany · 24 Feb 2011 at 19:26

Duke · 24 Feb 2011 at 19:27

They can charge what they want.

Minstadave · 24 Feb 2011 at 19:27

Some stations change their prices multiple times a day, one on my way to work is always a couple of pence more during rush hour.

flibbage0 · 24 Feb 2011 at 19:28

Based on analysts and predictions on economy and current affairs.

GJ02 · 24 Feb 2011 at 19:28

Minstadave said:
Some stations change their prices multiple times a day, one on my way to work is always a couple of pence more during rush hour.

surely they should not be allowed to do this anymore
things are getting out of hand now as im sure you will agree

Viper² · 24 Feb 2011 at 19:29

GJ02 said:
surely they should not be allowed to do this anymore
things are getting out of hand now as im sure you will agree

They can do whatever they want. It's wrong yeah, but **** happens.

Minstadave · 24 Feb 2011 at 19:31

It's supply and demand, just like everything else we buy.

Mr Jack · 24 Feb 2011 at 19:48

Petrol stations are extremely marginal businesses. They barely break even; the supermarket stations are often loss leaders.

cj265 · 24 Feb 2011 at 20:05

I hate the fact prices are so high! i have to do a 40 mile round trip everyday and it cost's me a fortune on fuel. unfortunatly there are no jobs closer to me in the work that i do.

I also dont get how we are the only country to put our prices up in the whole of europe for the last month!

GRRRR

Fourstar · 24 Feb 2011 at 20:30

cj265 said:
I also dont get how we are the only country to put our prices up in the whole of europe for the last month!

1) tax/duty increases
2) exchange rates
3) deregulation while most of Europe has remained closed
4) we have yet to transition our infrastructure from that of an oil/gas exporting nation to one of an importing one. We have very little in the way of storage or long-term price defined contracts. We by short term on the spot market for whatever it costs.

mangobreeder · 24 Feb 2011 at 20:54

every $2 rise in a barrel of oil increases the price at the pump by 1p

source: BBC news

Windle · 24 Feb 2011 at 21:23

Mr Jack said:
Petrol stations are extremely marginal businesses. They barely break even; the supermarket stations are often loss leaders.

Sauce?

Not that I doubt you, just curious. Would be interested to see the figures behind it.

el_dazza · 24 Feb 2011 at 21:36

Mr Jack said:
Petrol stations are extremely marginal businesses. They barely break even; the supermarket stations are often loss leaders.

Actually I believe make a few pence profit per litre.

Mr Jack · 24 Feb 2011 at 22:05

el_dazza said:
Actually I believe make a few pence profit per litre.

They do. Which barely pays for the cost of the station, maintenance, staff, etc.

Source: various, including BBC News earlier today.

Lopéz · 24 Feb 2011 at 22:34

Windle said:
Sauce?

Not that I doubt you, just curious. Would be interested to see the figures behind it.

I worked in a petrol station around 8 years ago. We made approx 1.6p a litre, hence my boss having a fixation on selling groceries and so on - selling fuel alone is just not sustainable.

[TW]Fox · 24 Feb 2011 at 23:33

mangobreeder said:
every $2 rise in a barrel of oil increases the price at the pump by 1p

source: BBC news

This is a pretty flawed figure as it would suggest that if oil was $50, fuel would be 75p a litre, which of course it never would be given duty alone is nearly 60p.

Tripnologist · 24 Feb 2011 at 23:55

I just came back from Canada, where I was only having to pay 61p/l, which is still expensive over there.

Spamalot · 24 Feb 2011 at 23:56

[TW]Fox;18542698 said:
This is a pretty flawed figure as it would suggest that if oil was $50, fuel would be 75p a litre, which of course it never would be given duty alone is nearly 60p.

That's not what it suggests at all. :confused: