Petrol price disparity?

[velocemitch]

What is it about the supply and pricing of Petrol in the UK that can create a situation where a small independent Rural Garage can sell fuel significantly cheaper than the big suppliers, including supermarkets.
How can this be, it goes against all the normal logic of buying in bulk and getting discounts.

Or are these big players in cahoots and ripping us all off?

I won’t bother quoting examples, but I’m sure we have all seen it.

[pequod]

Independents selling 'at cost' to keep their business going, providing used vehicles and other essentials (servicing/MOT) to a local rural community? Maybe the shop has a profitable turnover too?

Edited by pequod on Wednesday 12th October 19:31

[velocemitch]

pequod said:

Independents selling 'at cost' to keep their business going, providing used vehicles and other essentials (servicing/MOT) to a local rural community? Maybe the shop has a profitable turnover too?

Edited by pequod on Wednesday 12th October 19:31

Not sure that washes with the three examples Local to me. Prior to this year, these places were significantly more than the supermarkets. Also one has just upped its prices, presumably this latest tank full has gone up in wholesale cost to them.

[ScotHill]

Where are these cheap rural petrol stations and what is their price compared to the nearest town's supermarket?

[vaud]

Independents buying at daily market rate vs large suppliers locked in to multi month contract prices?

[Riley Blue]

ScotHill said:

Where are these cheap rural petrol stations and what is their price compared to the nearest town's supermarket?

End of last month, driving south through mid Wales, unleaded was 149.9 in a small town, 159.9 at nearest Tesco.

[ReallyReallyGood]

vaud said:

Independents buying at daily market rate vs large suppliers locked in to multi month contract prices?

I thought it was the other way around? Small independents buy less fuel less frequently so are not easily able to adjust their prices, whereas Supermarkets are bulk buyers buying frequently so are very flexible with their prices

[randlemarcus]

I don't think of it as a cartel style rip off, just a natural outcome of elimination of most local competition,and training the herd to rely on supermarket petrol.

[gregs656]

Riley Blue said:

End of last month, driving south through mid Wales, unleaded was 149.9 in a small town, 159.9 at nearest Tesco.

When I lived in West Wales people would make a point of buying fuel when they were in town as it was always cheaper. The independent garages are always more expensive in West Sussex as well, it is usually cheaper to buy fuel in Hampshire than West Sussex for some reason. What you're describing seems like an anomaly to me.

[ScotHill]

Riley Blue said:

End of last month, driving south through mid Wales, unleaded was 149.9 in a small town, 159.9 at nearest Tesco.

I wouldn't really call that significant, some of the local supermarkets here can have a 5p difference depending on where and when you go, and that's within a mile or so of each other.

[Matt_E_Mulsion]

The OP has a point, we have noticed similar things happening around by us.

The cheapest fuel is being led by the small independent garages, not the supermarkets as it traditionally was.

It's almost like the tables have turned!!!

[vaud]

ReallyReallyGood said:

I thought it was the other way around? Small independents buy less fuel less frequently so are not easily able to adjust their prices, whereas Supermarkets are bulk buyers buying frequently so are very flexible with their prices

Or they buy more frequently in smaller amounts meaning they follow the weekly pricing. I would guess supermarkets lock in to pricing over a longer period in exchange for commitments in volume?

[velocemitch]

Matt_E_Mulsion said:

The OP has a point, we have noticed similar things happening around by us.

The cheapest fuel is being led by the small independent garages, not the supermarkets as it traditionally was.

It's almost like the tables have turned!!!

That’s the point I’m making, it used to be supermarkets driving prices down, yet they are more expensive. I’m finding Shell Garages even more expensive, up to 20p a litre more than unbranded independents.

The big distributors are either making obscene profits, or they themselves are paying more at wholesale level.

[anonymous-user]

vaud said:

ReallyReallyGood said:

I thought it was the other way around? Small independents buy less fuel less frequently so are not easily able to adjust their prices, whereas Supermarkets are bulk buyers buying frequently so are very flexible with their prices

Or they buy more frequently in smaller amounts meaning they follow the weekly pricing. I would guess supermarkets lock in to pricing over a longer period in exchange for commitments in volume?

Many independents will be on daily pricing, supermarkets often fixed for 2 weeks. “Bulk buying” is irrelevant outside of the negotiated add-ons - which won’t make a massive difference at the pumps.

[Juanco20]

Shell near to home £1.59

Shell near to work (20 miles from home) £1.52

[oyster]

So unless you’re being forced at gun point to buy fuel where it’s priced higher, I don’t see a problem. It’s a market at work.


There may have been a time when:
Supermarket = cheap fuel.

That has ceased being the case. There are enough tools out there for people to find the best prices.

Edited by oyster on Thursday 13th October 12:05

[iphonedyou]

oyster said:

So unless you’re being forced at gun point to buy fuel where it’s priced higher, I don’t see a problem. It’s a market at work.

If you’re dumb enough to assume
Supermarket = cheap fuel, without researching then more fool you.

OP didn't call it a problem; he asked for an explanation.

But crack on with addressing the point you'd have preferred he made.

[bitchstewie]

There is no cartel or cahoots it's just a massive coincidence that in my town which has a very clear "boundary" separating it from other towns every garage seems to be 165.9p (including the supermarkets and the Shell) whilst if I drive to the next town every garage (including the supermarkets and the Shell) seems to be 159.9p.

[Ivan stewart]

Roman Rhodes said:

vaud said:

ReallyReallyGood said:

I thought it was the other way around? Small independents buy less fuel less frequently so are not easily able to adjust their prices, whereas Supermarkets are bulk buyers buying frequently so are very flexible with their prices

Or they buy more frequently in smaller amounts meaning they follow the weekly pricing. I would guess supermarkets lock in to pricing over a longer period in exchange for commitments in volume?

Many independents will be on daily pricing, supermarkets often fixed for 2 weeks. “Bulk buying” is irrelevant outside of the negotiated add-ons - which won’t make a massive difference at the pumps.

Supermarkets were buying a lot of Russian fuel !!

[andyA700]

oyster said:

So unless you’re being forced at gun point to buy fuel where it’s priced higher, I don’t see a problem. It’s a market at work.

If you’re dumb enough to assume
Supermarket = cheap fuel, without researching then more fool you.

Pretty rude response IMHO, considering that for decades, supermarket fuel has been cheaper than independent garages in the UK. Down here in Kent, even supermarket prices are varying greatly, but the Indys are far more expensive.