I know this has been discussed here before, but I was talking with someone who reckons that garages make 15 pence per litre on fuel when I thought the going rate was 2-3 pence per litre it is not important at all how much is made but just out of interest...…. thanks in advance
8 Replies
Will depend from petrol station to petrol station how much per litre is made.
A small local petrol station is likely to make more per litre than the large supermarket ones though.
There is a good reason why nearly all filling stations are shops as well; profit margins on petrol are, according to the industry, around 2%, so they make most of their profits from overpriced sandwiches and drinks.
I suspect that the independents make even less because they don't have the buying power or the storage capacity of the big boys. Some of the smaller chains depend on buying ex Rotterdam when the wholesale price is low, and selling to us when the price goes up again; I don't know how sustainable that policy is.
Any retailer getting 15p a litre would be laughing all the way to the bank.
Fuel duty is currently levied at a flat rate of 57.95p per litre for both petrol and diesel, while VAT at 20% is then charged on both the product price and the duty. This means that with petrol at £1.20 a litre, the government gets nearly 82p from every one.
There is some debate about margins for supermarkets, some suggesting that it is a loss leader - if petrol is cheap you've got people in, so they'll stop and do a full shop there.
Last week I saw at a filling station a bottle of water for £1.30 - of a size that I know in bulk costs approx 10p a bottle. Likewise, I saw phone chargers for sale at £20, of the quality that you would get for £1.99 from Amazon - but if you're a parent with screaming children who will be distracted by being able to use a phone or tablet, you'll pay...
Water at twice the price of petrol... It's crazy.
What I always found funny is how people moan that supermarkets are mean with their reward card schemes when it comes to petrol. “They give 1 point per £1 spent in the shop so why not for fuel”
For £1.30/L of fuel, a fraction under £1 of that is tax so they are getting 30p gross... why should they give customers rewards for paying tax
IMO stations really need to dissect their prices to educate the public on how much is actually going to the government. Not just show the total price. When they realise they are paying £1.30 for 30 pence worth of fuel maybe customers will divert their hatred from the filling station to the government
I find it interesting how in some countries, the price of fuel is fixed by the government, and every single fuel station in the country must charge the same, government-set price for petrol and diesel. Two countries I know do this are Luxembourg and Portugal.
It's great for the motorist, as they don't have to think about which petrol station will be the cheapest, and they can fill up at a motorway services knowing that it is no more expensive than at a supermarket. On the other hand, big businesses might consider it over-interfering and anti-capitalist ...
I find it interesting how in some countries, the price of fuel is fixed by the government, and every single fuel station in the country must charge the same, government-set price for petrol and diesel. Two countries I know do this are Luxembourg and Portugal.
It's great for the motorist, as they don't have to think about which petrol station will be the cheapest, and they can fill up at a motorway services knowing that it is no more expensive than at a supermarket. On the other hand, big businesses might consider it over-interfering and anti-capitalist ...
Are you sure about Portugal? There's a price comparison site here which suggests not http://www.precoscombustiveis.dgeg.pt/
OK, I guess not any more. It was when I went on holiday there about 10 years ago.
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FAQs
so 25 mpg in the city with 15 gal = 375 miles.
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