1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Who sets fuel prices?

Discussion in 'Motoring Related Discussion' started by flowrider99, Nov 22, 2018.

  1. flowrider99

    flowrider99 Senior Member

    Messages:
    2,164
    Likes Received:
    516
    Joined:
    Jul 21, 2014
    Your Mercedes:
    SL500 (R230) / Audi S5
    My local BP is currently advertising unleaded petrol at 138.9p per litre, the nearby Esso also has unleaded at 138.9p per litre. If a take a 10 min drive out of town the next nearest Esso has unleaded at 121.9p per litre and a nearby Texaco is 125.9p. Who sets these prices? Is it the local management of the petrol station or the fuel provider? Both of the expensive stations have cars queuing for fuel, some people have more money than sense.
     
  2. Craiglxviii

    Craiglxviii Senior Member

    Messages:
    13,171
    Likes Received:
    2,797
    Joined:
    Sep 6, 2015
    Location:
    Cambs UK
    Your Mercedes:
    W215 CL500 Garage Queen; W211 E320 Avantgarde Estate Designo Edition
    It's the owning company I believe. BP branded garages are run by the domestic fuelling arm of BP, which will study prices dependent on station positioning and regionally versus competitors. I can only imagine that the same is done by other companies.
     
  3. OP
    flowrider99

    flowrider99 Senior Member

    Messages:
    2,164
    Likes Received:
    516
    Joined:
    Jul 21, 2014
    Your Mercedes:
    SL500 (R230) / Audi S5
    BP are not good at checking competitors pricing then if a competitor 10 mins drive away is 17p per litre cheaper. Esso are even worse as the huge price difference is between Esso stations.
     
  4. AJD

    AJD Senior Member

    Messages:
    4,642
    Likes Received:
    777
    Joined:
    May 31, 2015
    Location:
    Suffolk by the Sea, UK.
    Your Mercedes:
    2012 W204 Sport ///AMG Line 4dr Auto, Obsidian Black, Light Grey Faux Leather
    In my day, some years ago, when I briefly had a filling station we used to keep an eye on each others prices and keep as close to the localities petrol pricing we could. If we could afford it we would try and undercut them but that was often the kiss of death because the others would try and undercut us.

    Petrol filling stations are generally bad news unless you can get the volume. The location of the site is also very important. Our site was in a village in Bedfordshire and there was another one 1/2 mile up the road owned by a then popular Rally Driver, Peter Waring and he got all of the business. We just didn't do enough research before committing ourselves. Understandably we didn't last very long. :rolleyes:
     
  5. LostKiwi

    LostKiwi Senior Member

    Messages:
    14,479
    Likes Received:
    5,696
    Joined:
    Aug 25, 2006
    Location:
    Midlands / Charente-Maritime
    Your Mercedes:
    '93 500SL-32, '01 W210 Estate E240, 02 R230 SL500 (Malcolm Spec), 04 Smart Roadster Coupe
    None of them are great at it. BP I always find to be the most expensive in any given area.

    Where we are its 131.9 per litre but a 9 mile drive to Rugby sees fuel prices 125.9 per litre for shell and under 120 per litre for Asda!
    Similarly a 10 mile drive in any other direction also sees similar drops.
    I make a point of never filling in our home town if I can avoid it.

    In NZ when I was in my 20s the price of fuel was fixed by the government. In my view a much better way to do it as it avoids the shock prices on Motorway Services (seriously - who would pay over 150 per litre???)
     
  6. JBell

    JBell Senior Member

    Messages:
    9,142
    Likes Received:
    1,579
    Joined:
    Dec 9, 2011
    Location:
    Torquey
    Your Mercedes:
    C350 CDi Estate (GAD Edition)
    I thought they were all franchises so the franchise owner sets the price, we have 2 local stations that change Brand often
     
    m2287 likes this.
  7. OP
    flowrider99

    flowrider99 Senior Member

    Messages:
    2,164
    Likes Received:
    516
    Joined:
    Jul 21, 2014
    Your Mercedes:
    SL500 (R230) / Audi S5
    I think 17p per litre price difference between stations 10 mins apart is ridiculous. In my home town the fuel stations are always a lot more expensive but never seem to struggle for customers.
     
    Last edited: Nov 22, 2018
  8. davemercedes

    davemercedes Senior Member

    Messages:
    2,278
    Likes Received:
    518
    Joined:
    Jun 15, 2012
    Location:
    Worcs
    Your Mercedes:
    2007 Merc 220 CDi Est Auto Av
    I read somewhere that Tesco local managers set their forecourt prices. At the time that seemed to justify one or two nonsense prices I'd seen although when looking around locally it feels like a cartel. 5 miles up the road towards Birmingham there's one station that's nearly always 5-6 pence cheaper which is good but only if we're going that way.

    Last week diesel at the 3 local supermarkets were all 135.9 per litre. Then much to my surprise at the weekend, a roadside filling station (Texaco brand) on the A44 down in Gloucester was 125.9!
     
  9. bembo449

    bembo449 Senior Member

    Messages:
    2,600
    Likes Received:
    429
    Joined:
    Jan 2, 2012
    Location:
    lincolnshire
    Your Mercedes:
    216 5.5 v8 , range rover vogue , 221 320cdi , alfa romeo brera
    I was told where there is several stations in an area , they collude to keep the prices the same as each other , certainly like that in this town at least
     
  10. AJD

    AJD Senior Member

    Messages:
    4,642
    Likes Received:
    777
    Joined:
    May 31, 2015
    Location:
    Suffolk by the Sea, UK.
    Your Mercedes:
    2012 W204 Sport ///AMG Line 4dr Auto, Obsidian Black, Light Grey Faux Leather
    That is certainly the way it used to be when I had a Filling Station, mind you that was 40+ years ago :rolleyes:
     
  11. Blobcat

    Blobcat Moderator

    Messages:
    9,447
    Likes Received:
    631
    Joined:
    Feb 8, 2006
    Location:
    Near Grange Moor (not Wakefield...)
    Your Mercedes:
    R171 SLK280 3.0, Land Rover 110 County SW
    When I was in Canada they used to put the prices up every weekend to catch the people heading to their cabins, then on a Tuesday they'd drop the prices again. I used to watch filling station operatives looking down the road with binoculars to see when their competitors changed their prices so they weren't out of step with them. They even used to tell me to hang on whilst they dropped the prices on more than one occasion.
     
  12. keefysher

    keefysher Senior Member

    Messages:
    2,376
    Likes Received:
    720
    Joined:
    May 4, 2007
    Location:
    Hampshire
    Your Mercedes:
    W166 GLE350AMG Line 3.0 2017. BMW Z3 2.8 1998.
    When we were in Brisbane in 2014 there was 1 day a week when fuel dropped considerably, it was announced the evening before but was a different day each week.

    This past week has seen unleaded drop to £1.219/l, diseasel is at £1.349/l

    School holidays see the price go up the Thursday before round here.
     
  13. McDonald

    McDonald Senior Member

    Messages:
    477
    Likes Received:
    338
    Joined:
    Apr 11, 2017
    Location:
    Surrey
    Your Mercedes:
    SL500 2004
    Petrolprices.com send me an email every week (free of charge) listing all local petrol stations and their prices of both unleaded and diesel. It doesn't help me understand the market but I don't pay over the odds.
     
  14. Frontstep

    Frontstep Senior Member

    Messages:
    6,373
    Likes Received:
    432
    Joined:
    Apr 22, 2007
    Your Mercedes:
    T210 320cdi
    They price as with everything for as much as they can get, it does expose that nonsense of "you get what you pay for" that so often gets spouted.
    Then the PR machine gets into gear and tells you supermarket petrol is mixed in buckets by sick children from the oil companies slops..
     
  15. Craiglxviii

    Craiglxviii Senior Member

    Messages:
    13,171
    Likes Received:
    2,797
    Joined:
    Sep 6, 2015
    Location:
    Cambs UK
    Your Mercedes:
    W215 CL500 Garage Queen; W211 E320 Avantgarde Estate Designo Edition
    That totally contravenes SarbOx, I doubt it.
     
  16. Rappey69

    Rappey69 Senior Member

    Messages:
    1,462
    Likes Received:
    84
    Joined:
    Dec 29, 2008
    Location:
    hants
    Your Mercedes:
    c220 cdi w203
    I have always found that BP are very good for charging at least 2p per litre more than anyone else, so I try to never use them.
     
    davemercedes likes this.
  17. OP
    flowrider99

    flowrider99 Senior Member

    Messages:
    2,164
    Likes Received:
    516
    Joined:
    Jul 21, 2014
    Your Mercedes:
    SL500 (R230) / Audi S5
    I wouldn't travel out of town for a 2p saving but when its 17p thats a different matter. My usual Texaco is generally 10p a litre cheaper than the fuel stations near me so thats my prefered place to go unless i am passing a supermarket filling station, but the nearby Esso at 17p a litre cheaper is hard to beat.
     
  18. LostKiwi

    LostKiwi Senior Member

    Messages:
    14,479
    Likes Received:
    5,696
    Joined:
    Aug 25, 2006
    Location:
    Midlands / Charente-Maritime
    Your Mercedes:
    '93 500SL-32, '01 W210 Estate E240, 02 R230 SL500 (Malcolm Spec), 04 Smart Roadster Coupe
    17p per litre for 80litres is about £13.That's a good few miles fuel!
     
  19. oigle

    oigle Senior Member

    Messages:
    2,806
    Likes Received:
    145
    Joined:
    Mar 15, 2005
    Location:
    Redcliffe, Queensland, Australia
    Your Mercedes:
    Currently 2003 ML270. 2012 Nissan Maxima 250SL.
  20. mioba

    mioba Senior Member

    Messages:
    714
    Likes Received:
    42
    Joined:
    Feb 19, 2006
    Location:
    Nottingham
    Your Mercedes:
    W124/1994/E200, W220/2004/S320CDI, W205/2016/C200, W447/2017/3.0 CDI
    It’s a cartel. The fuel stations, oil producers know the western world will stop dead without fuel. So charge a premium.
     

Share This Page