Panic buying fuel

Have you been an panic bought fuel today?

  • Yes

    Votes: 1 1.3%
  • No

    Votes: 76 98.7%

  • Total voters
    77
  • Poll closed .

Billysboots

Challenge Tour Pro
Joined
Aug 25, 2009
Messages
2,075
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

Professional Yeti Impersonator
Joined
Jan 12, 2013
Messages
11,823
Location
Worcester Park
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

Well-known member
Joined
Aug 14, 2020
Messages
429
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

Ryder Cup Winner
Joined
Sep 12, 2011
Messages
16,854
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.
 

SocketRocket

Ryder Cup Winner
Joined
Sep 12, 2011
Messages
16,854
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

Assistant Pro
Joined
Jul 25, 2015
Messages
543
Location
Cheltenham
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

Journeyman Pro
Joined
Apr 1, 2016
Messages
11,148
Location
Havering
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

Grand Slam Winner
Joined
Mar 15, 2008
Messages
31,072
Location
Aylesbury Bucks
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:unsure:
 

pauljames87

Journeyman Pro
Joined
Apr 1, 2016
Messages
11,148
Location
Havering
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:unsure:
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

Money List Winner
Joined
Sep 9, 2014
Messages
19,333
Location
Northumberland
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

Ryder Cup Winner
Joined
Sep 12, 2011
Messages
16,854
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

Money List Winner
Joined
Mar 7, 2012
Messages
8,002
Location
Dunfermline, Fife
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.
 
Top