Call for investigation into fuel pricing..
Discussion
Can't come soon enough either!
http://www.bbc.co.uk/news/business-13593591
And I know we think we've got it bad but it's even worse on the continent.. hopefully some good will come of this.
http://www.bbc.co.uk/news/business-13593591
And I know we think we've got it bad but it's even worse on the continent.. hopefully some good will come of this.
If you watch the video on that page, it seems that the guy from the RMI is actually calling for a possible increase in pump prices. He reckons supermarkets are selling below cost price and hurting volumes of the small independents, which is possibly illegal (not sure how though).
Most retailers are only making a few pence per litre, and if it is true that the supermarkets are selling at a loss, then surely there is no money to be saved there. Refining margins are already razor thin across Europe with many refineries shutting down, so it is unlikely that they can be squeezed. Most profit comes from the production of crude oil itself, which is sold on international futures and spot markets. Not sure how you can regulate that fairly.
Most retailers are only making a few pence per litre, and if it is true that the supermarkets are selling at a loss, then surely there is no money to be saved there. Refining margins are already razor thin across Europe with many refineries shutting down, so it is unlikely that they can be squeezed. Most profit comes from the production of crude oil itself, which is sold on international futures and spot markets. Not sure how you can regulate that fairly.
Isn't this potentially bad news for motorists in the UK?
If part of this investigation tries to balance the cost of fuel across EU member states, we'll be worse off. The UK pays less for the product (IIRC) than other members because we get taxed more for it? If the product price gets averaged we'll end up paying more?
If part of this investigation tries to balance the cost of fuel across EU member states, we'll be worse off. The UK pays less for the product (IIRC) than other members because we get taxed more for it? If the product price gets averaged we'll end up paying more?
SSBB said:
If you watch the video on that page, it seems that the guy from the RMI is actually calling for a possible increase in pump prices. He reckons supermarkets are selling below cost price and hurting volumes of the small independents, which is possibly illegal (not sure how though).
From what I understand it's to prevent a company from becoming dominant or even hold a monopoly on something by initially selling at a loss to undercut others and force them to go out of buisness.For the competition commission to make a thorough and accurate investigation they will have to consider the whole petrochem industry and how the various prices are set. Only then will they understand how pricing is rigged against the road user and some other customers by the oil industry.
Not sure that anything will come out of this in my lifetime.
However seeing as most of the pain for motorists comes from Govt taxes, not sure that EU Competition Commission can or will want to do anything about that.
Not sure that anything will come out of this in my lifetime.
However seeing as most of the pain for motorists comes from Govt taxes, not sure that EU Competition Commission can or will want to do anything about that.
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