Cheap(Er) Petrol...how They Doing It?

[bobbinwales]

in Wales
https://www.mirror.co.uk/news/uk-news/drivers-fear-theyve-been-taken-27563634

and now found this 159.9 per liter in England and its been the cheapest for a few weeks undercutting by 30p
https://www.manchestereveningnews.co.uk/news/greater-manchester-news/cheapest-petrol-station-england-lowered-24589049

Is there a catch or are others ripping us off

[bobbinwales]

"The station is now selling unleaded fuel at 159.9p and diesel for 179.9p a litre."

[douglas9401]

Ripping us off? In the UK? Shurely some mistake.

[Zacs-Master]

They may be able to partly fund this thru shop sales i.e. more people visiting = more people buying their shop goods. Maybe they've put a couple of pence on all shop items?

[Gromit]

The Manchester Evening News website has to be one of the worst in the country. For such an high profile organisation, its site barely works. I avoid it as much as possible even though it is my local paper.

[Old_Geezer]

Maybe they sell so much petrol the true price of wholesale oil, and thus fuel on the forecourt, has worked it's way through their system.

[brian j john]

If they can do it so should they all ,,,,
Let's have a price war

[Zacs-Master]

'Maybe they sell so much petrol the true price of wholesale oil, and thus fuel on the forecourt, has worked it's way through their system.'

The vast majority of garages are run as franchises. They will have no control over the wholesale oil price.

[youngmafbog]

Others are ripping us off.

For some reason the supermarkets done seem keen on a forecourt price war meaning the others will keep high too.

With them all doing it though one would start to smell a cartel in operation but the Government will drag their heels as they get more tax with a higher price.

[DTCwordfan]

Breakdown of a litre of petrol @ £1.85

Wholesale cost 33% 68p
Biofuel content 6% 11p
Retailer profit 8% 15p
Delivery costs 1% 2p
Fuel duty 31% 58p
VAT 17% 31p

Drop the price to £1.60, VAT becomes 27p - so a loss of 4p a litre to HMRC or with the UK currently consuming 40.4 million litres per day, £1.62 million per day......the equivalent of nearly £600 mln per year!

[DTCwordfan]

and then there's diesel.....

[bobbinwales]

If those figures are right then by knocking 25p a litre off yes HMRC loses 4p VAT but the retailer also makes a loss on each liter instead of a profit... so how do they do it.
Why not reduce it by just maybe 10p... massive boost in sales and still make a profit

[DTCwordfan]

the retailer still makes money though, not quite as much. All I can postulate is that Texaco have managed to buy s ome very cheap parcel on the spot market - but this ought to be reflected in other Texaco prices elsewhere. Otherwise the garage is only making about 2p/litre and that wouldn't cover site costs and o-heads.