Wurzel

iTrader: (1)

Nestle don't make Mars Bars! Mars do!!!!

Also companies sell things at different prices depending on the affluency of the are the shop is in. Waitrose used to do it alot, with Waitrose in the rich areas and the same shop with a different name in the poorer areas

Flatcapdriver

Its not straightforward and it won't satisfy the 'haters of any company that makes a profit' but I'll have a go...

There are several elements that determine the price of fuel but the most important is location which affects pricing regionally:

1. A forecourt base in the centre of London will have several costs which make it more expensive than one up north for instance. Higher labour costs, reduced bunkerage and congestion will all add to the forecourt price plus other costs such as higher local taxes and distance from the refinery.

2. Trunking costs vary greatly across the UK with the main refineries being at Fawley, Coryton, Mossmoron, Immingham and Stanlowe and this has an effect of skewing the pump pricing dependant on distance and volumes from each refinery.

3. As far as each supplier is concerned, you may have an Esso, Shell and Sainsbury's forecourt within a few miles of each other that essentially take the same feedstock but the likes of Esso and Shell will combine different additives and detergents to their fuels whereas the supermarkets generally don't go to the same extent - certainly the supermarkets at the cheaper end of the market don't buy the same quality fuel as Sainsbury's for example as witnessed by the problems that consumers faced last year when buying fuel from Tesco and Asda.

4. Non-franchsise/franchise networks also has an impact on cost as they operate on different margins. Think of a non-franchised Shell site that has recently been refurbished, which although it will have the effect of attracting more customers also has to be paid for, hence the possibility of higher pump prices.

5. Lastly, competitive activity. Supermarkets usually sell fuel at close to cost or in some instances as a 'loss leader' in order to attract customers into their stores. Faced with that, the local Shell/Esso station will have to compete on the same basis - get footfall up and try to make some margin on Mars bars and other fatboy foods whilst sacrificing the fuel margin which is slim anyway.

HTH.

Dracoro

A station in Croydon will be cheaper than one in Chelsea (have you seen prices in chelsea!!!) as land price is less and they probably have the same level of customer base.

A country station on a busy route will often be reasonable but one out in the sticks will be costly for the reason you stated.

Anyway, they are franchises so they can't subsidise each other. If Shell etc. said to charge only X per litre then the Park lane station and the out-in-the-sticks stations would make a loss and close. Central london would have no stations!!!!!!!!!!!! One way to enforce the congestion problems I suppose.

Terminator X

iTrader: (7)

McD's is more expensive in service stations isn't it or at the railway station (could be BK's though) so it's not the same price everywhere in the UK

TX.

Klaatu

I wonder how Caltex arrived at a figure of A$3,34.9 p/l in ten years? The term "price gouging" springs to mind.

Motorists to fork out $3 a litre in next decade

lozgti

Whatever the ins and outs I actually thought 'sod that' when I saw the price of Super unleaded and I just put normal stuff in.

Not thought about the cost of petrol or been bothered by it for about 20 years until yesterday

And I don't even pay for my own petrol so I shouldn't even worry!

Klaatu

The problem is this increase will have a downstream affect on ALL aspects of life. Food, in particular. And then there's energy costs, which will have a carbon tax imposed. Cost of "living" goes up, wages stay the same. How economies will "manage" this in the future when employees NEED 30%-50% increases in wages just to tread water I have no idea.

Abdabz

Dracoro is wise in the ways of the money things and I would like to subscribe to his newsletter