petrol price war? - john deacon
the news recons tesco are dropping the price of petrol and there is likely to be a price war

shame the chancellor doesnt drop the tax as well
petrol price war? - Pugugly {P}
Asda are doing the same....
petrol price war? - Welliesorter
Asda are doing the same....


Story at

news.bbc.co.uk/1/hi/business/4147419.stm
petrol price war? - Civic8
presume that means diesel will come down as well??..Though suspect not
--
Steve
petrol price war? - Robin Reliant
The rate at which fuel comes down in price as opposed to that which it rises I wouldn't call it a war, more a slight argument.
petrol price war? - Quinny100
Why don't supermarkets ever have diesel price wars?

I suppose its either because a significant proportion of diesel drivers are on fuel cards or expenses and so don't particularly care about saving 2p a litre, or because diesel drivers are seen as a bit thrifty and would happily fill up with cheap diesel and not buy anything in the store :)
petrol price war? - Pugugly {P}
"happily fill up with cheap diesel and not buy anything in the store :)"

That's me. Send the Spaniel around the back to blag the skips while I fill up.
petrol price war? - Cliff Pope
regret no war in west wales yet stop not even minor skirmishes stop price still 88 pence stop will report soonest stop
petrol price war? - Stuartli
Apparently it was Asda which first announced it was starting a "price war", Tesco followed suit.

What's puzzling (perhaps not quite the right word) is that fuel price increases come into effect almost instantly, yet when the price of oil drops it takes an eternity for the pump price to do so.
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What\'s for you won\'t pass you by
petrol price war? - BB
The BBC article states that diesel prices will not be dropped.
I am sure that diesel is cheaper to "crack" than petrol (defraction process?), so is it the additives and detergents that push the price of diesel up or is it someone just ripping us off again?
petrol price war? - Bromptonaut
Looks like they're exploiting an over supply of petrol to attract volume/publicity rather than feeding it directly into margin. Diesel probably not available in same abundance due usual issues with heating oil demand in the US winter. FWIW duty rates on Ultra Low Sulpher Diesel and petrol are the same.
petrol price war? - daveyjp
Diesel now 7p per litre more than petrol at our local Morrisons - 76.9 v 83.9p
petrol price war? - trancer
"Diesel now 7p per litre more than petrol at our local Morrisons - 76.9 v 83.9p"

Would be a nice side effect if fuel costs caused used diesel car prices to fall more in line with petrol cars. Chances are when I am ready to change my petrol for a diesel the fuel price difference will gone.
petrol price war? - Vansboy
I'm sure the supermarkets aren't just trying to make themselves look good, at the same time as getting us back into there stores, after emptying them of stock, for the few hours they were closed.

Bet we'd save more then the few pennies/ltr cut, by eating whats still in the fridge, for a couple of weeks!!

VB
petrol price war? - Stuartli
>>Diesel now 7p per litre more than petrol at our local Morrisons - 76.9 v 83.9p">>

Same at my local Morrison's this morning and exactly the same at Tesco some two miles away.

Hardly a genuine "price war"?

Just for interest, the Tesco some six miles down the coast from our local store charges at least 2p a litre more for unleaded as there is so little competition in the area (it's on a by pass dual carriageway); seems it's common Tesco policy if the circumstances are right.
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What\'s for you won\'t pass you by
petrol price war? - oldgit
Don't very often use Supermarkets for filling up. Do they commonly, sell super-unleaded as I need it for my new Golf's 1.6FSI engine (ideally, anyway).
petrol price war? - kithmo
Don't very often use Supermarkets for filling up. Do they commonly,
sell super-unleaded as I need it for my new Golf's 1.6FSI
engine (ideally, anyway).

Sainsbury's were selling Super unleaded at 81.9p a litre at meadowhall Sheffield at the weekend, it might be cheaper now with the new price cuts.
petrol price war? - Ramos
[snip] a couple of inaccurate statements and an inappropriate link.

Mark.
petrol price war? - madf
Well imo Asda need to do summit to attract customers. Walmart who own them are , I believe, ploughing all Asda's cash flow into expanding their European business.
As a result Asda stores - at least in Stoke on Trent - are boring, slightly dingy and have very few attractive offers although still cheap.

Cutting petrol prices may attract me to buy petrol - no - as Shell discount to match supermarkets here.


So no impact on me at all as a shopper...or a mutterist

madf


petrol price war? - blue_haddock
I presume you mean the store at wolstanton? yes it is a bit of a dingy place although the one in tunstall is a nice new place.
petrol price war? - Stuartli
>>shame the chancellor doesnt drop the tax as well>>

Hell would freeze over first...:-)


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What\'s for you won\'t pass you by
petrol price war? - john deacon
election coming and the eagles did tour
petrol price war? - BobbyG
As some may already know, I work for one of the big supermarkets but it doesn't mean I have loyalty to them!

The cynic in me says that petrol prices are down to , probably not profit making, just for publicity. The diesel prices are being kept at the higher level as many taxis, couriers etc use diesel and need to use it whatever the price. So, in effect, the supermarkets are using diesel drivers to support petrol prices.

Don't forget, 7p a litre is over 30p a gallon, over £4 a tank difference!

Thats a lot of money!
petrol price war? - PhilW
"Thats a lot of money!"
And even more if you can remember that diesel was 35p a gallon cheaper than petrol when you first bought a diesel car!!
petrol price war? - machika
Why are we so out of step with most of (if not the rest of) Europe when it comes to the price of diesel fuel? As diesel has been reduced before, when there have been cuts in the price of petrol, I cannot see how no reduction is justified in this instance.
petrol price war? - king arthur
Why are we so out of step with most of (if
not the rest of) Europe when it comes to the price
of diesel fuel? As diesel has been reduced before, when
there have been cuts in the price of petrol, I cannot
see how no reduction is justified in this instance.


Supermarkets are businesses, not public services. I'd say a large proportion of petrol buyers fill up their cars after buying the week's groceries, whereas a large proportion of diesel buyers are high mileage business users and not interested in buying anything in the stores themselves.
petrol price war? - Bromptonaut
Supermarkets are businesses, not public services. I'd say a large
proportion of petrol buyers fill up their cars after buying the
week's groceries, whereas a large proportion of diesel buyers are high
mileage business users and not interested in buying anything in the
stores themselves.


What King Arthur says is right but I'm not sure their customers will share the business reasoning. Be interesting to see how quickly one of the store groups broke ranks if there were a public backlash.
petrol price war? - king arthur
"Thats a lot of money!"
And even more if you can remember that diesel was 35p
a gallon cheaper than petrol when you first bought a diesel
car!!


I can remember when petrol WAS 35p a gallon!
petrol price war? - Timaru


According to the nice man on the news there is a shortage of Diesel fuel, so don't hold your breath hoping for a price drop.

Strange, as I thought both petrol and diesel where almost a by product of the same "cracking" process.
petrol price war? - cockle {P}
According to the nice man on the news there is a
shortage of Diesel fuel, so don't hold your breath hoping for
a price drop.
Strange, as I thought both petrol and diesel where almost a
by product of the same "cracking" process.

>>

But, as I understand it, diesel is closer to heating oil in the cracking order and as such eats into the amount of heating oil you can get from the same gallon of crude so you can have pretty much one or the other. Therefore it is the wrong time of year for a glut of diesel as the demand for heating oil is higher in the winter, for obvious reasons. Hence I think you'll find that the surplus petrol production is due to them having to 'crack' more crude to keep up with DERV and heating oil demand and thus petrol supply outstripping current demand which is where market forces come into play and the oil companies find themselves better off selling the petrol at a discount rather than paying to bunker it.
At least that's how a friend who worked in one of the local refineries explained it to me many, many moons ago, I presume the same still applies as 'they cannae change the laws of physics, Jim!'

Cockle
petrol price war? - Stuartli
>>I can remember when petrol WAS 35p a gallon!>>

I can remember paying even less...:-)
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What\'s for you won\'t pass you by
petrol price war? - machika
Still got no answer as to why we are so out of step with the rest of Europe. Do they not have supermarkets in other European countries that sell petrol and diesel? If so, I doubt they are selling it at more than the price of petrol.
petrol price war? - Timaru

Indeed they do and in France at least diesel is about half the price of petrol!
petrol price war? - Timaru

Thanks for that Cockle - I bow to your superior knowledge and not expect a fall in diesel prices before the Spring. Oh well, at least It'll give me something to moan about until then!
petrol price war? - Ford Dagenham
Hello.

Morrisons have lowered theires to 76.9 now.
--
(iam not a mechanic)

Martin Winters
petrol price war? - trancer
Its not just the supermarkets battling. The BP that I usually go to was 4p cheaper for regular unleaded than the week before and as a major motorway services they don't usually fluctuate like the supermarkets often do.

I don't really understand the reasoning that business users (taxis, couriers etc) have to buy diesel therefore its price doesn't fall in step with petrol. Petrol is needed just as much and no-one I know of will simply refuse to buy petrol because of its price. I certainly don't see private users as less dependent on petrol.

Moving here from the US little over a year ago I initially suffered "sticker shock" when I worked out how much petrol cost here. After a while the reality is that no matter what it costs, if you want to drive a car you will have to pay whatever price it is being sold for. No point stressing over pump prices, or the rise/fall of a few pence here and there. Even if prices were to be halved, the extra £10 left over in my wallet every week wouldn't make any difference to my quality of life.
petrol price war? - Vin {P}
"Indeed they do and in France at least diesel is about half the price of petrol!"

And that's almost entirely due to taxation differences.

Going back to the chemistry, when you break down crude oil you get a certain proportion of different sub-types of hydrocarbons, pretty much regardless of whether you can sell them. So there will be a certain percentage of crude that you can turn into heavy tars, a proportion that you can turn into diesels and fuels oils, a proporsion that you can turn into petrol, etc, etc. The proportions can be fiddled with, but not changed in a major way.

20 years ago, diesel was to some extent an unwanted by-product or producing petrol. There simply wasn't enough demand for the amount being produced, so it was cheap. Now that simply isn't the case, thanks to the rise in the proportion of diesel cars. Take that in conjunction with the demand for winter heating oil (almost the same sub-category) and you've got all the conditions for an increase in the diesel price.

In fact, if diesels become ever more popular (driving up demand for diesel relative to petrol) there may well come a time when there is no economic advantage in driving a diesel.

All that, of course, neglects the effects of taxation on the whole shebang.

V
petrol price war? - machika
So what is the government's argument for having such a different stance on diesel fuel tax to the rest of Europe (although it was the case before Labour came to power)?
petrol price war? - quizman
Called at the Shell filling station on the A50 yesterday. Diesel extra was 88.9p/litre. At the Derby Shell on Ashbourne Rd, only 4 miles away, the price of Shell extra diesel was 80.9p/litre.Why does the same fuel cost 36p/gallon more on the A50? Are we being ripped off on major roads? This road is not a motorway.
petrol price war? - paulb {P}
So what is the government's argument for having such a different
stance on diesel fuel tax to the rest of Europe (although
it was the case before Labour came to power)?

>>

As far as I can make it out:

1) Governments in continental European countries sussed out a long time ago that diesel-engined vehicles tend to be a lot more economical and therefore their use should be encouraged, by making the fuel significantly cheaper. I don't know whether the fact that rapeseed oil (I think?) makes up about 5% of it helps, but it would seem fairly logical.

2) HM Government formed the view a long time ago that diesel-engined vehicles are dirty, noisy and smelly, and thus their fuel should be taxed more highly, presumably as a deterrent. Obviously, technology has moved on considerably since then, but why stop a nice little earner when you're onto one?

If anyone has a better (or indeed more accurate) theory, I'll be glad to hear it.
petrol price war? - Robin Reliant
Each country raises it's taxes in different ways. In this isle fuel, alcohol and tobacco have been traditional areas where duty has been loaded most heavily, other countries no doubt have their own favourite charities they can collect shedloads from, be it income tax or otherwise.

Whatever way they choose to take it, they'll grab the same total amount anyway, so it's all down to which particular vices or hobbies you have as to how hard you're hit. Now if they let us off fuel duty and tobacco tax and decided it's about time health foods and gym membership took their turn, I'd be quids in.

We need a chancellor with vision...
petrol price war? - oldtoffee
I was in Dinan, France 2 weeks ago and I reckon about twenty to twenty five per cent less than petrol judging by the prices I saw. The gap seems to be closing but it is still significant.
petrol price war? - storme
you know the best way to start a price war????????????????????

if everyone stopped buying from,,,say shell...........
and i mean everyone

then they would lower the price to get the customers back

then if it was co-ordinated properly,,,pick on the next petrol supplier


wow,,,,,,we could all have cheap fuel....
what are your ideas??
petrol price war? - Ex-Moderator
Oh god, is it time for this one again already ?

Here's the main roblem;

It isn't the petrol company driving the cost up, its tax. The most a petrol company can give you is a few pence a litre.

Therefore, unless you are prepared to boycott the governement, which is not neccessarily a bad idea, you need to think again.

And the trouble is, that's not fashionable is it ?
petrol price war? - Schnitzel
Yes, I am sick of this silly suggestion too, it is from America (where else) where completely different situation exists.

A large proportion of fuel sales are now through supermerkets.

The brand on the pump does not denote the manufacturer of the petrol, merely the retailer.

You won't hurt the fuel companies one iota, but you could make a private franchise-holder lose his/her business.

Even if the fuel companies halved the price of fuel, it would still be the amongst the most expensive in the world, as we have rate of duty which is three times higher than the price of the fuel.
petrol price war? - Ex-Moderator
And to emphasise what Schnitzel says, you're attacking the franchise holder, rather than the nasty horrible capitalist oil company.