Oil Price Rising

[Scythe13]

(9 February 2013, 22:19)Highlander Wrote: Well you guys have a bit to go yet before you get to our £1.63 a ltr for diesel, although we do understand that tankers have to come a long way to get to our fuel stations

Distance has nothing to do with price. It's how much the pump's owners can sell it for.

Motorway services are the ideal example. If you're happily selling 1000 litres a day at £1.50 and making a nice margin, then you will. If there's a station a mile away selling fuel for £1.55, why not increase your price to £1.53? It's only £30 a day more, but you're doing the same thing and getting £210 more profit a week! Same as price drops. Until it's financially viable to reduce the price, why would a petrol station reduce their profit?