Petrol pricing, how is it worked out?

[Kentish]

How are price increases implemented?

Some of our local garages were 121.9 a litre for unleaded before Christmas.

The VAT increased by 2.5% and now the same filling stations are charging 131.9 for the same unleaded fuel.

A 10p rise in the price per litre in less than a month.

It seems to me that if there is any hint of a price increase (price per barrel of crude, duty, VAT, whatever reason) they add that on immediately and when the actual price increase is formally announced, they add it on again.

Anyone else notice this?

[kambites]

I think the filling stations run tiny profit margins, so I'd imagine that their supply price has risen if prices have risen above the tax increase.

[Kaelic]

noticed that I paid 75.9 for LPG from a station which was 64.9 last week

11 pence rise .... so where has the extra 10 pence come from???

bds :P

[Plug550]

The wholesale price this morning for a litre of unleaded is 119.486. That is at the terminal including all taxes, but before all distribution and retail costs. Most retailers will be paying around 122.000, and retailing at 129.9. They probably get 2 tankers a week, each costing more than the last.

[Kentish]

kambites said:

I think the filling stations run tiny profit margins, so I'd imagine that their supply price has risen if prices have risen above the tax increase.

Agreed but I do notice a pattern with our local stations.

As mentioned above, as soon as an increase is rumoured the price goes up and then when implemented it goes up again.

A few months ago, a 2p increase was announced - some filling stations locally added the 2p and then on the day the increase was implemented nationwide, they added the 2p increase again. It's only certain stations that do this locally, mainly near to where I work.

They are not small country filling stations either and they can be a good 6p - 10p a litre more expensive than other stations in the area.

[Plug550]

The wholesale price has risen by 1.1p per litre overnight. No scheduled retail increase due yet, but watch this space.

[Disco You]

What happens is the oil companies decide "right, we want to charge 10p a litre" then the government come in and take the piss quadrupling the price, then the petrol station add on 1p/litre.

[thinfourth2]

Plug550 said:

The wholesale price has risen by 1.1p per litre overnight. No scheduled retail increase due yet, but watch this space.

What is the price before tax?

[Plug550]

thinfourth2 said:

Plug550 said:

The wholesale price has risen by 1.1p per litre overnight. No scheduled retail increase due yet, but watch this space.

What is the price before tax?

I don't know, and to be honest it makes not one jot of difference to me. The wholesale price is set by the international exchanges and currency fluctuations, and varies. The chancellor will take his cut regardless of the price, and there's not much point in getting too upset over that, as it's roughly the same all over Europe.
Knowing the wholesale price gives me an indication as to whether the petrol stations are taking the piss or not, and as far as I can tell, a gross margin of around 5% doesn't seem to extortionate.

[Don1]

Basic diesel around me @ £1.31p a litre. That's £113 to fill the rangie. Thank god it's given me more than 400 miles per tank!

But these prices are stupid - hopefully it will start to get more people off the roads.