Tesco fuel rip off.
Discussion
I contacted their customer service department and asked them "How do you justify raising your fuel prices 3 or 4p per litre when you start the '5p off per litre' offer?"
They said,
"We understand that our customers are very concerned about high fuel prices, particularly in the current economic climate. I would like to assure you that we are committed to giving our customers a great value offer on fuel.
The cost of crude oil, as well as the wholesale cost of refined petrol and diesel that we all put in our cars, has been very volatile over the last couple of years and in general, the market has moved upwards rather than downwards.
In this unpredictable environment, we have tried to offer our customers consistently low and competitive prices. Our prices closely track the crude oil price; we pass on reductions as quickly as we can, and shield customers from dramatic price increases.
While our aim is to maintain consistently low prices, fuel retailers have very little control over what customers pay at the pump. There are many factors that influence the final retail price, most notably duty and VAT, which is the largest component of the
pump price. In fact, motorists would benefit from the lowest petrol and diesel prices in Europe if it were not for the UK’s fuel tax rate, which is one of the highest in Europe.
Overall, we believe that our competitive prices, Clubcard points, convenience and outstanding service mean that we offer our customers the best offer on fuel in the market."
Which is not true at all, there are 3 other garages with in a mile of the Tesco garage, 3p, 4p and 6p(self service) cheaper.
They said,
"We understand that our customers are very concerned about high fuel prices, particularly in the current economic climate. I would like to assure you that we are committed to giving our customers a great value offer on fuel.
The cost of crude oil, as well as the wholesale cost of refined petrol and diesel that we all put in our cars, has been very volatile over the last couple of years and in general, the market has moved upwards rather than downwards.
In this unpredictable environment, we have tried to offer our customers consistently low and competitive prices. Our prices closely track the crude oil price; we pass on reductions as quickly as we can, and shield customers from dramatic price increases.
While our aim is to maintain consistently low prices, fuel retailers have very little control over what customers pay at the pump. There are many factors that influence the final retail price, most notably duty and VAT, which is the largest component of the
pump price. In fact, motorists would benefit from the lowest petrol and diesel prices in Europe if it were not for the UK’s fuel tax rate, which is one of the highest in Europe.
Overall, we believe that our competitive prices, Clubcard points, convenience and outstanding service mean that we offer our customers the best offer on fuel in the market."
Which is not true at all, there are 3 other garages with in a mile of the Tesco garage, 3p, 4p and 6p(self service) cheaper.
I just use Shell when I can, but obviously appreciate not everyone has one just up the road. Usually cheaper and my car runs better/ is noticeably more economical with Shells standard 95 over Tesco. Plus it was someone's bright idea to put a Tesco next to a sewers, which is horrid when I'm trying to fill up with the wind in the wrong direction. Overall I do like the Tesco near me though, no complaints re customer service.
Luffehamp said:
My local tesco has only changed by 3p in the last 18 month I've been using it. Had plenty of 5p off without them changing prices.
I use the tesco99. Maybe they have different pricing strategies for the regular unleaded/diesel?
Its store dependent. Some closely follow the price of their keenest competitor, whilst others (especially if theyve driven their closest competitor out of business) pull the trick described by the OP.I use the tesco99. Maybe they have different pricing strategies for the regular unleaded/diesel?
Ever thought it could just be a coincidence? Maybe?
I've never noticed it to be honest; the fuel prices locally seem to fluctuate symultaneously with each other. I doubt they would increase the fuel costs to deliberately counter their 5p off promotion. Consider how busy the local Tesco filling station is, then consider how many of those people actually participate in the offer. It's going to be fractional.
One thing I have found and have agreed with others (but again this could just be coincidence) is that Tesco / Asda fuel is not as good as that from Sainsbury's. I certainly seem to get 50 miles extra from the latter which is an extra commute to/from work. Or maybe, like many of us, I'm just over-analysing this....
I've never noticed it to be honest; the fuel prices locally seem to fluctuate symultaneously with each other. I doubt they would increase the fuel costs to deliberately counter their 5p off promotion. Consider how busy the local Tesco filling station is, then consider how many of those people actually participate in the offer. It's going to be fractional.
One thing I have found and have agreed with others (but again this could just be coincidence) is that Tesco / Asda fuel is not as good as that from Sainsbury's. I certainly seem to get 50 miles extra from the latter which is an extra commute to/from work. Or maybe, like many of us, I'm just over-analysing this....
Luffehamp said:
My local tesco has only changed by 3p in the last 18 month I've been using it. Had plenty of 5p off without them changing prices.
I use the tesco99. Maybe they have different pricing strategies for the regular unleaded/diesel?
I buy their standard Diesel and have found this. In fact they are normnally one of if not the cheapest in the area before the promotion and the price never rises just beforehand unless everyone elses prices also rise.I use the tesco99. Maybe they have different pricing strategies for the regular unleaded/diesel?
Surely this is something that the OP can prove is actually happening using PetrolPrices.com
ShiggyBiggs said:
Overall, we believe that our competitive prices, Clubcard points, convenience and outstanding service mean that we offer our customers the best offer on fuel in the market."
Which is not true at all, there are 3 other garages with in a mile of the Tesco garage, 3p, 4p and 6p(self service) cheaper.
What have they stated that is not true?Which is not true at all, there are 3 other garages with in a mile of the Tesco garage, 3p, 4p and 6p(self service) cheaper.
Competitive prices? Yes, just not the cheapest.
Clubcard points? Yes
Convenience and outstanding service? Yes, for people who like to do their weekly shop and fill up at the same time, so a big part of their market.
Add it all together their customers may well feel it is "the best offer on fuel in the market".
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