Jump to content
House Price Crash Forum
Sign in to follow this  
Ash4781

Petrol Prices

Recommended Posts

It's interesting that during the period when oil prices fell back see a future chart here ( http://www.bbc.co.uk/news/business/market_data/commodities/143908/twelve_month.stm ) petrol prices, atleast here in the south east haven't fallen back.

I don't know how the suppliers in the chain feed into the price of petrol, fx movement effects, or how long stock is held for but I presume that falling prices are used to expand margins somewhere in the supplier chain until someone breaks ranks at the retail end, and tries a price war. Certainly one supermarket has given me 5p a litre off vouchers over the past few weeks. So x-5p could be the correct price?

Anyway, this sort of thing might worry the MPC,although I suppose they may eventually fall out of the comparison figures, because inflation will prove sticky (as they call it)?

Firms do seem to be getting confident at passing on price rises.

Edited by Ash4781

Share this post


Link to post
Share on other sites

There is indeed a phenomenon of quicker up and slower down. It's called an 'endowment effect'.

But the petrol distribution market is pretty competitive, ranks get broken within weeks. Most of these places make more profit from the attached shop than the petrol itself.

You do also have to be careful about fx movements. If the pound is weak the price of oil can appreciate in pound terms even if static in dollars.

Share this post


Link to post
Share on other sites

50% or more of the cost of fuel in Britain is for tax.

Nothing is going to change there.

Perhaps its time for people to stop living with the fantasy of having the 1950's era American lifestyle.

Get a bike, get closer to work, learn to live with less energy, and on your own terms.

Share this post


Link to post
Share on other sites

Get a bike, get closer to work, learn to live with less energy, and on your own terms.

If only house prices were lower to enable this, oh and that the UK economy wasn't so narfed.

Share this post


Link to post
Share on other sites

Come off a little in the south west - diesel up to 1.45, dropped to 1.39 now on the rise again by the looks of things.

Can someone please explain to me why the petrol retailers are allowed to sell a product with a 0.9p component? We don't even a 1/2p denomination now.

Share this post


Link to post
Share on other sites

@pedro

I don't have a car. I have a bicycle, motorbike, and my two feet, and I've never been to a job centre, nor will I ever need to be.

The thing is though nobody can see the future! And you should never say never.

Share this post


Link to post
Share on other sites

There's a BP garage I pass regularly that has a sign up saying "Cut price petrol available here".

They charge 134.9p per litre. Aye, that's what I call "cut-price"... :lol:

Share this post


Link to post
Share on other sites

Morrisons used to cut their petrol prices first which forced the others to do the same.

Unfortunately when Marc Boland joined M&S with a £15m golden hello, Morrisons decided to whack their salaries up, so they probably need the extra petrol cash now. It's OK though because FTSE firms know the public have bottomless pockets.

Share this post


Link to post
Share on other sites

The nearest tesco has gone from 136.9 to 132.9. Although i think thats just Tesco being greedy. ASDA never went above 132.9

...because people that spend over £50 shopping get it for the right price, others pay more than they should. ;)

Share this post


Link to post
Share on other sites

If you are spending £50 at Tesco to get 5p off petrol it is false economy.

...don't disagree, but they sell it as a way of saving money. ;)

Share this post


Link to post
Share on other sites

...don't disagree, but they sell it as a way of saving money. ;)

Lidl's 540g Chicken Breasts for £1.99 covered the Tesco petrol discount in one go yesterday, just for the first pack.

It's getting noticeably busier.

Share this post


Link to post
Share on other sites

If you are spending £50 at Tesco to get 5p off petrol it is false economy.

Not if you would have spent that £50 anyway. I've noticed that instead of lowering prices, what tends to happen is that when the price of oil falls, petrol retailers enhance the loyalty perks they offer (bonus Nectar points, 5p a litre off if you spend more than £50 etc.) rather than reduce the cash price. I presume this is to discourage people from shopping around for petrol.

There is an argument for saying that promotions like the Tesco one are anticompetitive, because they encourage me (for example), to plan and do my entire weekly grocery shop at Tesco rather than, say, spend £35 in Tesco and then £15 in bits and pieces at local independent shops.

Share this post


Link to post
Share on other sites

We're in the south of France and the price of diesel in the local Geant Supermarket is €1.25/litre = £1.09/litre.

Just drove thro France diesel at the supermarket at Bolougne port 1.19 euro and in Pau (South France) 1.23 per litre and in Spain 1.21 per litre, we really do get screwed it the UK costs around £30 more to fill up my VW.

Share this post


Link to post
Share on other sites

Not if you would have spent that £50 anyway. I've noticed that instead of lowering prices, what tends to happen is that when the price of oil falls, petrol retailers enhance the loyalty perks they offer (bonus Nectar points, 5p a litre off if you spend more than £50 etc.) rather than reduce the cash price. I presume this is to discourage people from shopping around for petrol.

There is an argument for saying that promotions like the Tesco one are anticompetitive, because they encourage me (for example), to plan and do my entire weekly grocery shop at Tesco rather than, say, spend £35 in Tesco and then £15 in bits and pieces at local independent shops.

Do you really base your shopping around a 5p off petrol?

How much petrol do you use a week?

Say you get 20 litres you save £1 with Tesco's 5p a litre off fuel

If their prices on the stuff you spend the £50+ on are 2% more expensive you haven't saved anything.

Plus supermarket petrol pumps usually state "contains detergent additive".

Share this post


Link to post
Share on other sites

Not if you would have spent that £50 anyway. I've noticed that instead of lowering prices, what tends to happen is that when the price of oil falls, petrol retailers enhance the loyalty perks they offer (bonus Nectar points, 5p a litre off if you spend more than £50 etc.) rather than reduce the cash price. I presume this is to discourage people from shopping around for petrol.

There is an argument for saying that promotions like the Tesco one are anticompetitive, because they encourage me (for example), to plan and do my entire weekly grocery shop at Tesco rather than, say, spend £35 in Tesco and then £15 in bits and pieces at local independent shops.

...I would not do all my shopping in one store out of principal, I believe in competition and I know I save money by buying different things at different places....the key is to know what local fruit and veg is in season and buy that at the local markets, often other fresh produce that is a the peak of ripeness is sold at a very good price to sell....can be eaten that day cooked or blanched and frozen.

Meat from the local butcher if you choose the right one is often better quality and cheaper than the plastic wrapped mass produced tasteless cheap meat you can get in the supermarkets.....cheese, eggs and butter is something that I always get at a better price...good quality fresh strong cheddar no more than £5 kg, free range large eggs £1 doz and butter under £1 a pack....sometimes you can get special offers that beat that but you get consistency in other places that don't have the overheads of the supermarkets.

Lidl is a place I like to shop in, their strong bread flour is a very good price and so are many of the specialised products that the supermarkets do add a premium to....I nearly died when I required some maple syrup it was over £5 nearly £6 for 250g....the sort of item that you require on the spur of the moment, that is where the mark-ups are.... relying on irrational purchases. ;)

Share this post


Link to post
Share on other sites

Just drove thro France diesel at the supermarket at Bolougne port 1.19 euro and in Pau (South France) 1.23 per litre and in Spain 1.21 per litre, we really do get screwed it the UK costs around £30 more to fill up my VW.

Petrol's expensive in France though, it really pays to have a diesel car here.

Share this post


Link to post
Share on other sites

Petrol's expensive in France though, it really pays to have a diesel car here.

Diesel used to be a lot cheaper in this country than petrol, no longer....diesel is cheaper than petrol in both France and Spain......go figure. ;)

Edited by winkie

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.