Petrol pricing simple-Energy pricing daft - FoxyJukebox

Like millions of others, I try and get the best value when buying petrol- using supermarkets most of the time and maybe graduating to a local BP. A max choice of around 3 or 4 with the cheapest £litre being my objective!-easy!

BUT BUT-Why is it that energy providers--particularly the big ones- have anything up to 50 different daft names, Price fixes, On Line Fixes, Super fixes etc etc etc for their two products -gas and electricity.

Just what would be the impact of 50 different names and prices for petrol?

Petrol pricing simple-Energy pricing daft - gordonbennet

The difference between the petrol and Diesel prices is minimal when compared to domestic fuel simply because of the massive amount of tax grab levied on each litre.

Commercial users can save costs by bunkering or some sort of pre pay, and of course they can get the VAT tax grab back, but they're stuck with the fuel duty as are most, as for the rest of us we're stuck with buying at the rate in the area.

Edited by gordonbennet on 15/05/2018 at 12:27

Petrol pricing simple-Energy pricing daft - MikeM100

I too have pondered this question and have a few thoughts on the matter .........

May I suggest we need more 'competition'in the domestic market for petrol and diesel fuel. With more electric vehicles coming on to the roads we also need to make vehicle energy consumption easier to understand for all consumers.

I therefore suggest that we adopt the practices of the electricity and gas utilities who have greatly improved their industry over the last thiry years and have provided us with an extreely competitive market for these products.

Firstly, we need to set up a Government Office (Offuel?) for the regulation of all vehicle fuel in the UK. They will liase with industry and represent consumers interests to ensure that we have the keenest prices that the market can provide.

The Office will also have powers to impose price 'levies' to ensure that 'Green' and other environmental issues are given the consideration they deserve. They will also help break up the 'big' fuel companies to encourage many more smaller companies to enter the 'market' and provide greater choice with a vast range of competitive tarrifs.

The Office will also encourage consumers to regularly 'switch' suppliers using the various on-line web sites. However, the usual exit fees for early change of contract would apply to encourage customer loyalty.

This 'shake up' will entirely change how vehicle fuel is purchased and there will be many changes to the old fashioned established practices that may include the following:

Consumers will be required to be contracted to a particular company and will only be able to purchase fuel from their chosen company and their designated filling stations. This may be a little inconvenient but consumers will soo get used to the extra driving to find one of 'their' filling stations.

Consumers will no longer have the inconvenience of 'paying' at the filling station but will have their yearly consumption estimated (on the high side) and will pay by a calculated monthly direct debit only.

Whilst the fuel pumps may still have 'indicators' to monitor the delivery of fuel, the price will be shown in kilo Watt hours (kWh) that will be calculated from the actual volume, the temperature of delivery, the calorific value of the fuel (dependant on where it was refined) and a 'magic' conversion factor (to six decimal places - no less). Not unreasonably there will be a small 'standing charge' for use of the pump and the cost of the electricity used to pump the fuel.

It may also be prudent to charge variable rates for the volume (energy) delivered - for example the first 10 litres of fuel (or equivalent kWh) could cost £2.50 per litre and the next x litres cost a reduced cost of £1.20 per litre. This may be in place of the standing charge or in addition depending on the chosen tarrif.

This will then allow consumers to easily compare the cost of traditional hydrocarbon fuels with electricity.

Before fueling the customer will be obliged to provide proof of their identity (e.g. passport), enter their vehicle registration number and current odometer reading. This will allow real time calculation of actual miles per gallon (MPG) and should the vehicle not meet current permissable performance/emissions it will be immediately immobilised and then crushed. The Office will then have instant access to national fuel consumption figures.

All this data will be made available on a multi-page 'paperless' monthly web bill which consumers will be able to query 'at non busy times' by phone, at their expense, when there is a mistake not of their making.

AND so On and so On and On until I fall onto my knees weeping tears into my empty fuel tank !

Petrol pricing simple-Energy pricing daft - Bromptonaut

Wrong end of telescope.

There's a proper market for motor fuel just as there is for baked beans. You can choose Aldi or Heinz Beans, Costco/Tesco fuel or BP/Shell. The only fly in ointment is local prices - why is diesel or petrol in Northampton consistently 2-3p litre more than in Milton Keynes or Leicester?

Gas and electric markets are distorted by massive numbers of customers who seem happy to stick on standard tariff with (for most part) successors to old regional gas/electric boards. Equally, if you get a discounted/fixed tariff it expires and you're back on inflated variable rates.

And then there are issues with pre-pay and debt around 'essential' household utilities that don't bear on market for motor fuel.

Apples and pears.

Edited by Bromptonaut on 16/05/2018 at 00:34

Petrol pricing simple-Energy pricing daft - Andrew-T

I would suggest that there may be no incentive for much more competition in roadside fuel sales - filling stations have been closing steadily for many years. Some are now just carwashes or simply empty sites, and it may now be necessary to drive several miles to get fuel, where in the 'old days' one could usually expect to find a station just round the next bend. And that is despite steady growth in the demand for fuel. Most filling stations also need a convenience shop to stay afloat.