Why do BP charge more than other petrol garages?
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I refuse to use BP, what's your thoughts on the fact that they are one of the most expensice and announce massive profit?
Answers (10)
Hi darry - I used to work for a major oil company and know that there's very little profit from selling fuel at petrol stations. The relatively small profit from petrol stations comes from their associated shops and the brand name. Oil company major profits come from onshore and off-shore oil exploration, production and transportation and not petrol stations.
So unless you think BP petrol/diesel is better quality, its better to get your fuel from a supermarket who are much better at running a retail business and therefore able to operate more effectively at much lower margins and consequently sell fuel at lower prices.
Heh. It's because no other petrol garage is being sued by the American government...
No, even before then they were more than other stations, anyway that should not be a reason to up their prices as they have million in profit. I guess it comes from being the biggest supplier which really should in turn reduce price but not for BP. That's why I will not use their services, actually I would rather run out of petrol and walk to the next available one for petrol.
If only we had Flintstone cars that we could pedal along rather than using the petrol companies...
Its called a bicycle!
lol
You can even get a shopping cart that fits onto your bicycle to take your shopping home but it wont do your street cred much good!
If only we had an E.T. to carry in the cart so the bicycles flew...
From what I gather it BP is almost owned by America with more shares held by them ...but lloydstsb of London are the insurers and so are having to pay out ....Please tell me if I have this wrong ...
In my area they aren't necessarily. Usually the Total garages are the most expensive or Shell. However we have 2 BP petrol stations less than a mile apart and one is always dearer than the other.
I agree with Darry - they always seem to be one of the dearest. I only use them if I am desperate. Give me Tescos and the Loyalty Points anyday!!!
Thanks roseangel, that's surprising, I live in Surrey and they are always more expensive, what area do you live?
I'm in Milton Keynes.
Just drove past today and the Total garage has now become a BP one! It was still 1p more expensive than the BP one directly opposite it!
I am in MK too, Roseangel. Tesco at Wolverton is always cheapest I find (AND I get my POINTS!!!) OR Asda is self serve so it is sometimes a penny cheaper than the aforementioned Tescos, but never more.
When I go to France the first station is TOTAL...I call it "Total rip off"
and happily pass it..
I don't use BP either. I tend to still to Tesco or Sainsburys as you get points towards your shopping!
Well done, always rely on tesco to keep it cheaper.
I always use Tesco as it saves an extra journey as I'm going there anyway. Apart from getting Clubcard points, they regularly do a promotion where, if you spend £50 in store or online, you get a coupon for 5p off a litre. A pretty good saving on a tankful.
Yes we use the 5p off where we can too as it does save money.
i have to agree with you ,,,,,,,Tesco is my closest petrol station
To pay for oil disasters - ahem!
>;o()
I actually didn't know that was the case. However, I do firmly believe that individual petrol garages tend to vary by location and sales potential. We have a BP town centre here where the prices tend to be average and sometimes even suprisingly competitive. But if I travel some 30 miles up the road, I can see another 5p per litre at another BP station. At the end of the day, a petrol station that is consistently priced up and above other local outlets will see that people vote with their feet. I know of one BP station which has always charged above average over the past 20 years and always has an empty or very slow forecourt. It's like anything in life, you shop where you feel comfortable with the price.
£1 27p now for petrol, wow since the start of this question the prices have gone up again because of VAT. I have a 1.1cc and I can rememeber only a few years ago that I could fill it up for £40 odd. Today it cost me just short of £60 but I had just under 1/4 of a tank, clearly now it's going to go over the £60. I'm dreading filling up the Zafia, disgusting amount of money.
When I wur a lad 50p would get you down the cost and back with half a tank to spare!
I hear they are trying to organise a mass petrol protest again - the problem with this is it will only be the unemployed or the people off work who will go on it - I mean the British people used to protest at inequality now we just take it up the yeehaa.
Seriously how many of us would really get up off the settee and go protest - look at the possible advantages - you might get on tv for that elusive 15 minutes/seconds of fame - I'm making my banner up as we speak! Stardom beckons!
Yes in the 1960's crude oil was about 1.5p per litre and the total tax added was about 65%.
If you pay £1.27 per litre at the pump now the fuel duty is 58.95p and VAT is 21.29p - the actual fuel cost is 45.5p. Of this about 5.5p is for the petrol station costs and profit and the rest i.e. 40p is about what is paid to the refinery for the fuel. Crude oil is about 37.5p per litre so refinery costs/profit are about 2.5p. Total tax (fuel duty plus VAT) added is about 64%.
You can protest against fuel duty cost at: http://petitions.number10.gov.uk/reducefuelduty/
I will protest for what it's worth. I had a general understanding of the costs but your understanding is clear for everyone to see. I did see one BP garage at £1.29 today, I personally feel this time prices are going to remain high and I do not see it going back down below £1 any more.
What's your thoughts donk?
Omendata, yeehaa it is for a lot of us, your right not many will protest because we do not fight for what's right in this country. But to a degree becasue we know that if prices were lowered it would be offset somewhere else!
What will your banner say, I'm not taking it up the yeehaa, you made me laugh with that one.
The prediction for 2011 is that the price of crude oil will rise by at least another 10% and possibly 15%. (see: http://www.forecasts.org/oil.htm)
This will mean a pump price of about 133-135p per litre. Be prepared!
Oil company profit is currently at about 20p per litre and roughly 18p is from the sale of crude oil and the other 2p is from refining. The price of crude oil is set by OPEC who collectively have about 80% of the world's oil supplies, with Saudi Arabia having about 30%.
I hear today (Sunday)that David Cameron is 'considering' reducing fuel tax in the next budget. How do we put pressure on to achieve a reduction?
Em, as easily as possible, perhaps someone should start up a campaign site.
And a year later and I still refuse to buy BP because of the price, Total is also bad ...even if the garage was open today with no queue ...thanks but no thanks
It's funny to see how, a year ago, we were complaining about £1.27. Come back £1.27 - all is forgiven!!!!!!!!!!!
Very true, diesel here is now 153 point something or other!!
It's about quality! I think cheap, low grade petrol can be enhanced by pumping Benzine gas through it. This increases octane levels, but is not good for engine wear. Scientist needed, please!
I'm not the scientist you're looking for Greydo but bp roughly same price as others here
Interesting what youve said, Greydo. But the trouble with petrol and these claims about higher grades being better is that it is something we can't see and don't feel the benefits of. If you have just an ordinary economy car, you try to look after it the best you can but often you just want to buy the cheapest petrol available - especially now!! No matter what you buy, it'll still need servicing, it'll still break down, at times itll cost you a fortune to fix and other it'll sale thru the MOT. Most of us, just stick to the cheap low grad petrol and hope for the best. I have to add, I am very lucky - my husband is a mechanic and a very good one and so I don't have to worry about my vehicle - other than the increasing cost of filling up.
Lucky you!
Scientist here!
Higher temperature burning fuels cause problems for the valves and they burn out quicker hence why old engines need hardened valves to run on unleaded.
Additives reduce the conflagration temp.
Thanks, Omen, but I still don't understand this. I always put the super duper stuff in my car, as it seems to run better on it...am I wasting my money?
Can we have that in English for the non-scientists amongst us Omen?
In essence, petrol pricing is set at local levels and depends entirely on what everyone else is charging and I gather the affluence of the area and what drivers will 'stomach'.
We have two BP sites within four miles here in East Sussex and one is notoriously always top whack and the other varies from good to average. If drivers keep coming in, their prices will never be competitive. I have one Esso site in Eastbourne that is always the cheapest I have to say. Diesel around here is currently £1.44 a llitre and my attitude is simply to fill up and don't let it depress me. Having said that, I do minimise my private use now and try and fit my outside needs around my business mileage driving without of course incurring extra mileage to achieve that!
I don't think we will ever win here as drivers as petrol companies have you by the S&Cs and they know it. But I have to say that apart from sunny bank holiday weekends, the roads are looking remarkably quiet in the weekday evenings.
£1.44?? Wow that's cheap!! £1.50.9 here Snoops :(
Where U been, Omen? missed you!
£1.36 up in Scotland - yay!
Great site to use -
Finds the cheapest petrol sites near you using postcode or town.
Happy Easter, Omen...lovely to see you! :-)
Wow, that's cheap Omen!!! That's the website I use too, but prices here much of a muchness unfortunately.
Nice to see you back Omen, happy Easter!!
In Guildford fuel is £1.38, Reading £1.36, Newbury £1.43 and Basingstoke £1.42. With Basingstoke the nearest to the refinery you'd think theirs would be the lowest. As each town generally keeps the same price throughout but each town is different, there is some evidence of price fixing or running of illegal cartels. But the government turn a blind eye to it. We pay thier fuel for them so they have no invested interest.
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Donk, thanks for you input.
Very interesting explanation Donk - thanks! I always try to buy diesel at a supermarket (Asda if possible as it is always the cheapest around here). Motorway service areas are sooo expensive (not just BP) and it's worth checking the phone for the nearest off-motorway station.