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| Profiteering Shell outlet in Fife charging 199.9p for diesel http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=2&t=38102 |
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| Author: | StuartW [ Fri Mar 11, 2022 7:03 pm ] |
| Post subject: | Profiteering Shell outlet in Fife charging 199.9p for diesel |
The huge variation in prices looks very like some outlets taking the opportunity to profiteer on the back of rapid price changes and customer confusion. Zero evidence here that the 199.9p for diesel in Leven is due to cost pressures or the competitive environment. Obviously a reasonable amount of competition in the town, and Leven/Methil hardly a wealthy area. It's not Mayfair or Knightsbridge, or a motorway service station. Ditto the Montrose scenario up between Dundee and Aberdeen (my home area). And just a few miles up the road from Leven, it was 30p cheaper in Shell St Andrews last night. And St As certainly a wealthier area, with less competition - Shell is the only branded outlet, and it's slap bang in the middle of town. The only other option is Morrison's, and it's right on the edge of the town, and on the most inconvenient side of the town for most motorists. (For what it's worth, visit the link to see photos of the other quoted forecourt prices. They're all about 1,500 pixels wide, thus far too big for the forum, although the Courier's website displays them at a manageable size. The one below is actually on the wide side at 1,000 pixels, but obviously it's a good photo for illustrating the article.) Spiralling fuel prices: Is this Fife petrol station Scotland’s most expensive? https://webcache.googleusercontent.com/ ... clnk&gl=uk ![]() Image: DC Thomson Media A Fife petrol station has been branded Scotland’s most expensive after prices for diesel climbed to a new record level of almost £2 per litre. A litre of diesel at the Shell’s Bawbee filling station in Leven reached £1.99.9 on Wednesday afternoon. The cost of unleaded at the same garage reached £1.76.9 per litre. On the same day, the UK average per litre for diesel was £1.69.93 and £1.58.2 for unleaded. Recent price hikes by oil giant Shell led to Leven motorists swarming to Sainsbury’s, just a quarter of a mile away, where petrol and diesel was 27p and 44p cheaper respectfully. Demand became so high that the supermarket temporarily ran out of fuel at its Riverside Road station. At the pumps, frantic motorists filled their vehicles before prices rose again. Electrician James Gleeson said he was “stunned” by the level of increase. He said: “It’s outrageous to have diesel reach £2 a litre which must make it the most expensive in the country. “Prices are astronomical and I fear they are going to get a whole lot worse yet, especially if the war in Ukraine continues to escalate. “I need to fill up my van regularly as I travel all over Scotland for work. “I’ve just filled up my van and it cost me over £90 – that’s at the cheaper station. “I’ve never spent that much in one go filling up, it’s heart-breaking. “So many people and businesses are going to be hit hard as the prices continue to rise.” ‘Petrol prices are crazy’ Fellow motorist, Sara Dougherty, voiced similar shock at the spiralling prices. “Petrol prices are crazy,” she said. “It could force people off the road as it becomes more and more expensive. “I’m already considering alternative forms of transport and thinking twice about non-essential travel due to the rising costs.” In Tayside, motorists have been making 25-mile roundtrips from Montrose to Arbroath in the hunt for cheaper petrol. It was sparked by the price of diesel reaching £1.84.9 per litre at the Shell filling station on Bridge Street, Montrose. At the nearby Esso on Esk Road, it was only slightly cheaper at £174.9 per litre. Worst is yet to come Motoring organisation RAC predict prices will keep rising as the impact of Russia’s invasion on Ukraine continues. RAC fuel spokesman Simon Williams said: “While prices were rising due to oil production not being able to keep up with demand as life becomes more normal again, Russia’s invasion of Ukraine caused the barrel price to shoot past the $100 a barrel mark for the first time in nearly eight years making wholesale fuel far more expensive. “We know from RAC research that eight in 10 drivers would struggle to get by without their cars and that the pandemic has made access to a car even more important than ever, but the exorbitant cost of filling up may force people to cut down on non-essential journeys to save money.” Shell did not respond to a request for comment. |
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| Author: | StuartW [ Fri Mar 11, 2022 7:05 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
Quote: It was sparked by the price of diesel reaching £1.84.9 per litre... Hate to be pedantic, but noticed that a forum contributor did the same on another thread But you can't have two decimal points in a number, so the correct format is: £1.849 Or: 184.9p
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| Author: | StuartW [ Fri Mar 11, 2022 7:07 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
Anyway, similar scenario in Dundee last night, although not quite such a differential between the numbers. But the Shell outlet on one side of the city centre was charging 187.9 The Shell on the other side of the city centre was 171.9 No obvious reason for the difference, apart from blatant profiteering. And Tesco a couple of minute's drive away was 157.9 Anyway, took the opportunity to fuel up at the first Shell station in Dundee last night, at 171.9 Got back to St Andrews, and it was 2p per litre cheaper It's usually the other way round - in fact, often 5p or more per litre in St Andrews. But I suppose that's not quite as bad as £20 *a tank* more they were asking in Leven (All my prices for diesel, obviously. And the Courier article is a couple of days old now. What's the betting the Shell outlet *not* charging 199.9p in Leven now?) |
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| Author: | bloodnock [ Fri Mar 11, 2022 7:09 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
It's turning into a pricing lottery. |
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| Author: | Sussex [ Fri Mar 11, 2022 11:04 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
Quote: Hate to be pedantic, but noticed that a forum contributor did the same on another thread ![]()
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| Author: | Sussex [ Fri Mar 11, 2022 11:07 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
I suppose because the price of a barrel is fluctuating a fair bit that's reflected in the wide variations we all see. The busier a petrol station the more it will fluctuate, whereas a small one will keep its fuel longer and should therefore be a bit more stable. |
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| Author: | StuartW [ Sat Mar 12, 2022 6:58 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
You may have a point of sorts, but doubt if that's the case with the station in Leven, which I think would be quite a busy forecourt with a high turnover, as big brand outlets tend to be. Anyway, your point would depend on a hugely uncompetitive market and thus they'd be able to increase the fuel price to reflect the oil price without consequence, and thus maintain their profit levels. On the other hand, if the market was 'perfectly competitive', then at 199.9p they'd sell precisely zero. Of course, in practice, markets are neither monopolies that can charge what they want, nor perfectly competitive where the station in Leven wouldn't be able to sell any fuel at all at that price. And the reason they'd sell zero in conditions of perfect competition is because people would simply buy it at a cheaper outlet nearby. But it's not perfectly competitive because, for example, people don't have up-to-date information on prices readily available. They would maybe consider driving to St Andrews to get a tankful of Shell diesel for £20 cheaper, but that's assuming they know the price in St Andrews. And to the degree that it would cost them time and money to drive to St Andrews, that detracts from the idea of perfect competition. And people might not like supermarket fuel, for example, and to that extent there could be a degree of monopoly power, as in St Andrews, with only one branded outlet. (Of course, even that's not a true monopoly, because even though I generally avoid supermarket fuel, I tend to fill up in Dundee, where it's usually cheaper. On the other hand, the branded fuel thing isn't an absolute monopoly for me, because although I'll normally pay a couple of pence more to avoid supermarket fuel, if the current price gap persists then I may have to reconsider )And, back in Leven, people who are aware of what's going on are queueing to buy at Sainsbury's, which then runs out, so to that extent the Shell outlet gets a degree of monopoly power. Also, it's funny they concluded that 199.9p was the price to charge, rather than 200.9p or 201.9p, or higher, or a few pence below the £2 mark. Which maybe suggests a degree of 'psychological pricing', thus the usual thing about pricing at £1.99p or whatever to make things sound that bit cheaper. Keep it under the £2/litre mark, and to that extent it doesn't sound quite as bad as breaching the £2 barrier. So to that extent there's a degree of imperfect competition evident, as there's an element of deception at play. So my money is on a degree of profiteering in Leven to reflect market 'imperfections' in an environment of rapidly fluctuating prices, rather than simply raising prices to reflect the cost of oil. And once word gets round, and thus the market becomes more competitive again, then I'd bet a tankful of diesel that they haven't been charging 199.9p for long
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| Author: | StuartW [ Sat Mar 12, 2022 6:59 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
The Courier wrote: At the nearby Esso on Esk Road, it was only slightly cheaper at £174.9 per litre. While trying to be smart-arsed about having two decimal points in a number, missed this clanger in the Courier's report. I know prices have gone up substantially, but at £174.9 per litre it would cost over £12k to fill my tank It should, of course, read £1.749, or 174.9p
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| Author: | edders23 [ Sat Mar 12, 2022 8:48 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
StuartW wrote: Quote: It was sparked by the price of diesel reaching £1.84.9 per litre... Hate to be pedantic, but noticed that a forum contributor did the same on another thread But you can't have two decimal points in a number, so the correct format is: £1.849 Or: 184.9p ![]() hate to be pedantic but fuel is always priced in PENCE per litre
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| Author: | StuartW [ Sat Mar 12, 2022 11:04 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
edders23 wrote: hate to be pedantic but fuel is always priced in PENCE per litre ![]() That's the generally accepted practice at the forecourts, certainly, but it's not an absolute. Plenty of news articles around about the prospect of £2 per litre, for example, and I suspect that's more common than articles about the likelihood of 200p per litre On the other hand, the Courier tried to mix pump pricing in pence and pounds in its report, which is acceptable to a degree, but ended up with two decimal points in the numbering of the latter, which is just plain incorrect So it's maybe more about accepted practice rather than being correct or incorrect. It's maybe like in the US, where there seems to be practice of using fractions in the forecourt pricing rather than decimals So neither .9 nor 9/10ths is mathematically incorrect, but obviously expressing it as a fraction looks a bit daft to our eyes
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| Author: | Rebel-Taxi-Driver [ Sun Mar 13, 2022 3:56 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
Basic supply & demand. Prices vary everywhere for all types of products and services. One steak restaurant might charge £20 for sirloin and chips and another a mile down the road £28. Factors such as location play a role and the fuel stations on busy roads and in locations where there is no other station close-by are usually the ones that charge the highest price at the pump. The retailers do not make much profit from selling fuel. It is not an easy business to be in. If you think otherwise set-up your own and make your millions!!! The major costs go to the government. A tax of 57.95p of fuel duty in every litre of diesel and petrol to be precise. Plus VAT at 20% of the wholesale price on top of that which at £1.99 a litre for diesel at some of the highest forecourts around the country would be 39p. So that's around 97p just going to the government so close to 50% being taken away from the retailers profits right there. If it was £1.04 per litre it would be around 72% going to the government. Try giving 72% of your earnings to the government before you have to pay your own costs. The garage retailers have to pay staff wages and the rent on the property including council rates etc. It's why all of them now sell food and snacks and other items to help them be a profitable business. I wouldn't be surprised if the bulk of their profits come from sales of food and snacks etc. Lastly, you also have costs to the refiners and expenses for distribution to the forecourts from the wholesalers etc. If you want cheaper fuel then put pressure on politicians. Because they squeeze the average man and woman in this country for every spare penny he and she has. https://www.ons.gov.uk/economy/inflatio ... 2016-01-22 |
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| Author: | edders23 [ Sun Mar 13, 2022 4:43 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
Quote: The retailers do not make much profit from selling fuel. they usually make around 6 to 8p a litre but at the moment that is creeping up to 12 to 15p a litre or more If there was no money in retailing fuel no one would do it
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| Author: | jimbo [ Sun Mar 13, 2022 6:57 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
Zuber and Mohsin Issa bought ONE forecourt in 2001. They now own 5,000 plus. And Asda too… No money in petrol stations eh? Your (E23) having a laugh! |
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| Author: | edders23 [ Sun Mar 13, 2022 8:38 pm ] |
| Post subject: | Re: Profiteering Shell outlet in Fife charging 199.9p for di |
Quote: Your (E23) having a laugh! is this a hint that you have bought yourself a vintage BMW as a hobby ? |
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