The AA claimed the price gap between diesel and unleaded fuel on the petrol forecourt, nearly 4p a litre, is more than a penny per litre bigger than the difference on the wholesale market.
It\’s a market and in a market sellers will charge what the market will bear.
No, not cost plus, not a fair value, not a just price. Simply what they can get away with.
The limit to what they can get away with being competition. And petrol retailing is one of the most cut throat competitive markets in the country. Please, get a grip: you\’re in a capitalist, market, economy.
As I don’t pay the Daily T for a subscription I can’t read the article, but on top of what our host says, both markets are different. The refining capacity, the demand, the types of customers, the size of purchase. Then the methodology: how big and diverse was the control group?
It is just another special interest group standing up for its parishoners. If you are worried about getting ripped off by the majors, buy a bike for gawd’s sake!
Just a doubt or two about possible rigging and collusion, but, for those differences???
Worry about the level of tax instead. That’s what makes it really expensive. Oh, and frack too, that’ll help.
Question that comes from idle curiousity. How does the production cost of diesel compare to the production cost of petrol? The difference between the two at the pump varies wildly from country to country based on local government policy, but what are the actual economics without that?
@bilbaoboy
“As I don’t pay the Daily T for a subscription I can’t read the article”
Depending on browser, go to options, privacy, cookies, find the telegraph ones, delete them. You’ll get your 10 or 20 free pages back again. Repeat as often as required.
Ta Noel
Let me guess – the price of fuel is cheaper on the wholesale market than the retail market. Hence prices, and differentials would be expected to be more on the retail rather than the wholesale market.
Do the AA expect the mark-up on fuel on the forecourt (pennies) to be absolutely the same as that on the cars in the showroom?
bilbaboy @ 7:43 am and Noel.
Even better, if you are using Firefox. Set cookies for telegraph.co.uk to Allow for Session Only.
(there might be other Telegraph urls involved. I can see 3 in my setup, that might/might not need the same treatment. But are set Session Only anyway)
Hi guys
Any advice on robbing the Bank of England?
The Daily T. Is too easy for you
Is it really a capitalist market economy or an unregulated/corrupt oligarchical conglomerate of oil-producing nations and oil companies dominating a market with almost insurmountable entry barriers for new players, and rigging the game in national and international politics to keep the gravy train rolling?
I wrote a script for nobbling DT’s cookies. It’s Mac/Linux only I’m afraid but free for the asking.