Petrol prices- when does the madness end?
Discussion
200Plus Club said:
Begs the question if Costco can do it consistently cheaper by 10p a litre why can't others?
The standard, generic shop mark-up on petrol was always around 12p so I guess if you want to use petrol as a means to haul in customers to your shop where they will blow vast sums on buckets of mayo and a nylon blanket for winter you can drop away all of that petrol mark-up. I would hazard that the issue for a supermarket which looks on the surface like it could run the same model is that they aren't randomly dotted around the U.K. in a select few locations but instead are totally ubiquitous and located in absolutely prime traffic locations so a huge percentage of their fuel customers never even step foot inside the main store to shop meaning there is much less of that 12p as net profit to be given away to increase net profit elsewhere.
Selling fuel, if one assumes there is approximately a 10% mark-up is an incredibly lean retail business when one considers the typical retail mark-up of other shops selling 1p sweat shop goods.
10-15% of the cost are the green initiatives. Around 40% are the taxes. If the actual price of petrol were to reach the point where consumer elasticity had been exhausted and a loss of economic mobility was genuinely being seen your starting point for price reductions wouldn't be with the retailers but with the green initiatives and then the core taxes.
But, when you look around it's pretty clear to see that we are nowhere near that point.
Conversely, we are at the point re things like heating costs where removing the 5% VAT on the first units of consumption and applying 10-20% VAT on the next units of consumption does look to make sense, along with issuing gilts to allow the worst of the market premium to be paid for at a later date would be a genuine benefit for every person in the U.K. with an income below the national average.
NFT said:
Anyone playing the pence game?
Heard a couple of guys talking about it yesterday, you slightly overfill by pence over the pound, pay in notes and see if you get let off, one got to 8 pence last three places, another can't get over 4p where he lives, what has the world come to lol
I'd imagine it works better with £100 contactless limit. Heard a couple of guys talking about it yesterday, you slightly overfill by pence over the pound, pay in notes and see if you get let off, one got to 8 pence last three places, another can't get over 4p where he lives, what has the world come to lol
Edited by NFT on Saturday 25th June 19:31
I rarely carry my wallet around these days.
200Plus Club said:
Philvrs said:
Going back to costco, did you know their app shows the prices for all their petrol stations in the country.
Quite handy if you like that sort of thing.
Begs the question if Costco can do it consistently cheaper by 10p a litre why can't others? Quite handy if you like that sort of thing.
Put it like this - if Tesco charges a £34 annual membership (is that the cheapest you can get Costco as non-trade?), do you think their product prices would be the same as now?
Essentially it’s turbocharged loss leading for Costco to get people to buy memberships who otherwise wouldn’t.
Assume a 10ppl differential, that’s 340 litres before you as a consumer break even. Assume maybe 10 miles per litre consumption, that’s 3400 miles. Easily hittable for most motorists, mind.
Edited by Jawls on Sunday 26th June 11:18
Edited by Jawls on Sunday 26th June 11:18
Jawls said:
Totally different business model.
Put it like this - if Tesco charges a £34 annual membership (is that the cheapest you can get Costco as non-trade?), do you think their product prices would be the same as now?
Essentially it’s turbocharged loss leading for Costco to get people to buy memberships who otherwise wouldn’t.
Assume a 10ppl differential, that’s 340 litres before you as a consumer break even. Assume maybe 10 miles per litre consumption, that’s 3400 miles. Easily hittable for most motorists, mind.
also don't forget, some will then shop with Costco and provide further revenue there. If it increases their market share, it further improves their buying power and increases margin potential. Put it like this - if Tesco charges a £34 annual membership (is that the cheapest you can get Costco as non-trade?), do you think their product prices would be the same as now?
Essentially it’s turbocharged loss leading for Costco to get people to buy memberships who otherwise wouldn’t.
Assume a 10ppl differential, that’s 340 litres before you as a consumer break even. Assume maybe 10 miles per litre consumption, that’s 3400 miles. Easily hittable for most motorists, mind.
Edited by Jawls on Sunday 26th June 11:18
Edited by Jawls on Sunday 26th June 11:18
Nearest Costco is over 12 miles from me and I rarely go to t'other side of Brum so not economic for me. But if you're a regular user of the M6, it'd be worth a small diversion, U/L is 180.7p there today!:
https://www.costco.co.uk/store-finder/Birmingham
https://www.costco.co.uk/store-finder/Birmingham
Fusion777 said:
Local Shell is 199.9p for diesel. It's 197.9p at a local Co-Op. Bonkers.
I.e. £2 and £1.98.It's funny how Asda and Sainsbury's will mark their fuel to .7 and not .9, to get people to think it's cheaper when in actual fact there's no such thing as 0.7p or 0.9p - it gets rounded up anyway.
captain.scarlet said:
Fusion777 said:
Local Shell is 199.9p for diesel. It's 197.9p at a local Co-Op. Bonkers.
I.e. £2 and £1.98.It's funny how Asda and Sainsbury's will mark their fuel to .7 and not .9, to get people to think it's cheaper when in actual fact there's no such thing as 0.7p or 0.9p - it gets rounded up anyway.
Not that it makes much difference to total cost of tank
e.g. 60ltr * £1.99.7 = £119.82
60 later * £1.99.9 = £119.94
Enjoy that 12p
Every little helps 
captain.scarlet said:
I.e. £2 and £1.98.
It's funny how Asda and Sainsbury's will mark their fuel to .7 and not .9, to get people to think it's cheaper when in actual fact there's no such thing as 0.7p or 0.9p - it gets rounded up anyway.
Asda have always loved their 7's. They use them a lot in store as well (£0.97 rather than £0.99, etc).It's funny how Asda and Sainsbury's will mark their fuel to .7 and not .9, to get people to think it's cheaper when in actual fact there's no such thing as 0.7p or 0.9p - it gets rounded up anyway.
Jawls said:
200Plus Club said:
Philvrs said:
Going back to costco, did you know their app shows the prices for all their petrol stations in the country.
Quite handy if you like that sort of thing.
Begs the question if Costco can do it consistently cheaper by 10p a litre why can't others? Quite handy if you like that sort of thing.
Put it like this - if Tesco charges a £34 annual membership (is that the cheapest you can get Costco as non-trade?), do you think their product prices would be the same as now?
Essentially it’s turbocharged loss leading for Costco to get people to buy memberships who otherwise wouldn’t.
Assume a 10ppl differential, that’s 340 litres before you as a consumer break even. Assume maybe 10 miles per litre consumption, that’s 3400 miles. Easily hittable for most motorists, mind.
Edited by Jawls on Sunday 26th June 11:18
Edited by Jawls on Sunday 26th June 11:18
hilly10 said:
bloomen said:
Definitely me.
Almost all my mileage is entirely discretionary. I can easily go without when your pointless day trip costs £50.
Same here, we are now retired and just cut back on the unnecessary journeys from the last fill just over two weeks ago barely 130 miles and if I do take the TR6 out on a gratification run I combine it in doing something we need to do.Almost all my mileage is entirely discretionary. I can easily go without when your pointless day trip costs £50.
TCX said:
Not trying to get at any one...but doesn't this tie in with net zero etc,people staying home,local,just another change that's forced on us by the green agenda
It's just coincidence. Excess pollution is a result of excess consumption, which in turn is a product of excess credit and capital. When either capital or credit reduce (or costs increase) then so does consumption and as a byproduct, pollution. DonkeyApple said:
TCX said:
Not trying to get at any one...but doesn't this tie in with net zero etc,people staying home,local,just another change that's forced on us by the green agenda
It's just coincidence. Excess pollution is a result of excess consumption, which in turn is a product of excess credit and capital. When either capital or credit reduce (or costs increase) then so does consumption and as a byproduct, pollution. DonkeyApple said:
TCX said:
Not trying to get at any one...but doesn't this tie in with net zero etc,people staying home,local,just another change that's forced on us by the green agenda
It's just coincidence. Excess pollution is a result of excess consumption, which in turn is a product of excess credit and capital. When either capital or credit reduce (or costs increase) then so does consumption and as a byproduct, pollution. Covid ,climate'ctisis',cost of living crisis....once is happenstance,twice is coincidence....three times is enemy action
Pollution isn't reducing, Pakistan is pushing through coal powered energy projects thanks to China,fires from exposed coal in Indian mines have burned unabated for over 100 years,can you imagine the carbon footprint of those....nothing we do in this country makes a blind bit of difference
Edited by TCX on Sunday 26th June 13:05
TCX said:
DonkeyApple said:
TCX said:
Not trying to get at any one...but doesn't this tie in with net zero etc,people staying home,local,just another change that's forced on us by the green agenda
It's just coincidence. Excess pollution is a result of excess consumption, which in turn is a product of excess credit and capital. When either capital or credit reduce (or costs increase) then so does consumption and as a byproduct, pollution. Covid ,climate'ctisis',cost of living crisis....once is happenstance,twice is coincidence....three times is enemy action
Pollution isn't reducing, Pakistan is pushing through coal powered energy projects thanks to China,fires from exposed coal in Indian mines have burned unabated for over 100 years,can you imagine the carbon footprint of those....nothing we do in this country makes a blind bit of difference
Edited by TCX on Sunday 26th June 13:05
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