Panic buying fuel

[Imurg]

Gotta pay for furlough somehow....

 

[Billysboots]

So, when the panic buying was kicking off we were bring told that there was no need to panic as we had 3 months worth of fuel in stock, just waiting to be delivered.

That fuel was purchased months ago at prices set months ago,

So why is fuel now being sold at hugely inflated prices, when the reality is that the fuel bought at the new higher prices, won’t actually hit the pumps for a couple of months.

Somebody is making a shedload of cash from this, but in my opinion, it needs regulating as the motorist is getting clobbered big time …again

I don’t think this is anything new, though. I remember many years ago driving past my local garage on my way to work, and then again on the way home, and in between the price of diesel had increased by 3p a litre. After I had refuelled I asked the cashier what time they had taken a new delivery and she said they hadn’t for nearly a week. So a different price was being charged for the same consignment of fuel.

 

[Blue in Munich]

So, when the panic buying was kicking off we were bring told that there was no need to panic as we had 3 months worth of fuel in stock, just waiting to be delivered.

That fuel was purchased months ago at prices set months ago,

So why is fuel now being sold at hugely inflated prices, when the reality is that the fuel bought at the new higher prices, won’t actually hit the pumps for a couple of months.

Somebody is making a shedload of cash from this, but in my opinion, it needs regulating as the motorist is getting clobbered big time …again

As VAT is charged then that would mean the people regulating it would be regulating against more money going into their coffers; more chance of turkeys voting for Christmas Phil.

 

[HeftyHacker]

I don’t think this is anything new, though. I remember many years ago driving past my local garage on my way to work, and then again on the way home, and in between the price of diesel had increased by 3p a litre. After I had refuelled I asked the cashier what time they had taken a new delivery and she said they hadn’t for nearly a week. So a different price was being charged for the same consignment of fuel.

Without knowing much about the industry, I've no doubt that there will be some profiteering going on but i imagine that they have to pay for a restock so if the wholesale price of future stock increases they will have to pass that on in their current stock to afford to pay for it.

I guess the control if the wholesale price goes down is the element of competition. As soon as one place reduces their prices the rest are kind of forced to follow suit.

 

[SocketRocket]

Without knowing much about the industry, I've no doubt that there will be some profiteering going on but i imagine that they have to pay for a restock so if the wholesale price of future stock increases they will have to pass that on in their current stock to afford to pay for it.

I guess the control if the wholesale price goes down is the element of competition. As soon as one place reduces their prices the rest are kind of forced to follow suit.

I'm my area some are selling at 9p a litre less than others, I accept that they are at will to charge what they like but is the cheaper outlet making a loss or is the dearer profiteering.

 

[Dando]

Prices in the US are outrageous

 

[pauljames87]

https://www.bbc.co.uk/news/business-59034854

interesting article on the BBC explaining the rise in price rather than just greed from the retailers.. lots of it people just will never see as when it goes up say 5p its easy just to blame the retailer when they are making just under 9p a litre (based on 142.9 a litre )

 

[SocketRocket]

https://www.bbc.co.uk/news/business-59034854

interesting article on the BBC explaining the rise in price rather than just greed from the retailers.. lots of it people just will never see as when it goes up say 5p its easy just to blame the retailer when they are making just under 9p a litre (based on 142.9 a litre )

So how can one sell it 9p cheaper than others in the area. Are they selling at a loss?

 

[Beedee]

So how can one sell it 9p cheaper than others in the area. Are they selling at a loss?

Are they attached to a supermarket? Fuel has always been a loss leader to get punters in.

Are they part of a huge multi-national? Much bigger buying power, benefits of scale, and chance to reduce the competition compared to small independents.

 

[pauljames87]

So how can one sell it 9p cheaper than others in the area. Are they selling at a loss?

do we know what stock it is? Im not sure its that article that i posted ill check in a min but one cause of the rise they said was the e10 fuel the ethonol is more expensive and more of it so thats some of the cost, could be e5 fuel so cheaper stock

plus 9p at the pump how much is that actually off the cost price.. i mean VAT is part of it..

 

[Imurg]

Most of the diesel around here is between 1.44 and 1.47...apart from one garage just out of town..1.51...was quiet when I drove past twice yesterday...wonder why

 

[pauljames87]

Most of the diesel around here is between 1.44 and 1.47...apart from one garage just out of town..1.51...was quiet when I drove past twice yesterday...wonder why

out of the woods now but some retailers were saying they put their prices high to deter people from going mad and queuing at them. thats what my father in law said. he repairs the pumps dunno how true that is but thats what he was told

 

[Lord Tyrion]

out of the woods now but some retailers were saying they put their prices high to deter people from going mad and queuing at them. thats what my father in law said. he repairs the pumps dunno how true that is but thats what he was told

Most pricing with fuel is whatever the local area will take. I know which towns will be more expensive near to me, which will be cheaper. Even within those towns I know which will be 1p more or 1p less. I'm sure it is the same for most people. We have a Morrisons supermarket in the town where I live and one where I work. The fuel in the one where I live is always 1-2p more than where I work, despite it being closer to the fuel terminal that they are both supplied from.

At some point in all of this one of the supermarkets will use fuel as part of a mini price war and the prices across the board will start to drop again. We are just waiting at the moment to see who will go down that road first of all.

 

[SocketRocket]

Are they attached to a supermarket? Fuel has always been a loss leader to get punters in.

Are they part of a huge multi-national? Much bigger buying power, benefits of scale, and chance to reduce the competition compared to small independents.

Sainsbury's fuel in our area us always considerably cheaper than other outlets, the petrol station is close to but not directly attached to the Supermarket. They are always extremely busy and quite a big station, 9p a litre is quite a saving and with their turnover they would be losing a lot of money if it was a loss leader. It's definitely E10.

 

[GreiginFife]

Much will be economies of scale. I doubt supermarkets will be making a loss but comparing a big supermarket chain with a franchised BP is assuming all things are equal across the supply chain.

But even assuming they are, small garage charges 5p more and sells 1000 litres, supermarket sells 10000 litres and still makes more money.

 

[IainP]

China's turn...
https://www.bbc.co.uk/news/business-59059093