UK government may force petrol stations to cut costs - Polidicks

[B]Transport Secretary Justine Greening has said she will consider legislation to force petrol retailers to pass on cuts in the wholesale price of fuel.[/B] The Department for Transport says pump prices paid by motorists have fallen by just 7p despite a 10p fall in wholesale prices since April. Ms Greening told the BBC she would consider taking further action to ensure motorists "get a better deal". [B]But petrol retailers said her remarks showed a "lack of understanding".[/B] Petrol prices have fallen back since hitting record levels in March, when unleaded rose above £1.40 a litre. The AA said wholesale costs across northern Europe had dropped more than 16% during May, [B]but petrol retailers had been slow to pass this on[/B] to motorists. Its president, Edmund King, welcomed Ms Greening's comments, saying: "Over the past seven years we have asked governments to act against the blurred world of UK pump prices, [B]which every driver knows shoot up like a rocket and fall like a feather.[/B]" A Department for Transport source told the BBC the industry would have a matter of weeks to come up with a voluntary code of conduct to ensure wholesale falls were passed on within a fortnight to the motorist. [B]But if a scheme could not be agreed, he indicated the government would look at legislation[/B], although the source was unable to say how long that might take. Ms Greening told the BBC she wanted a voluntary scheme to be agreed. She said: "That's what we're going to look at first, but if that doesn't work we will look at some of the things other countries have done like Germany, Austria and Denmark, who have taken more mandatory action in this area. [B]"I'm really determined that motorists get a better deal."[/B] Shadow transport secretary Maria Eagle said: "[B]Petrol stations should be lowering their prices when wholesale costs of fuel fall, and it is unacceptable if they are refusing to do so[/B], especially when they are quick to pass on any increase. [B]"Ministers must also accept their share of responsibility for eye-wateringly high prices at the pumps thanks to their decision to hike VAT on fuel."[/B] She added: "Ministers should temporarily restore the lower rate of VAT to fuel to give much-needed relief to households feeling the squeeze, as well as acting to ensure price cuts are fully passed on to motorists." Brian Madderson, chairman of the Retail Motor Industry Federation's petrol division, said: "Suggestions that the falling price of oil and wholesale price movements on the continent should dictate further pump price cuts across the UK by independent forecourt operators is [B]damaging to this struggling sector and shows lack of any real understanding [/B]of fuel price mechanisms." [URL]http://www.bbc.co.uk/news/uk-politics-18262301[/URL]

'bout fucking time. Fed up of having to put £80 in my car. Used to be great when it was only £50. Well, I say "Only"... it's still £50.

The vast majority of the cost of petrol is due oil spectulators and high taxes. The amount added by petrol stations is a tiny fraction of the total cost of petrol and is used to keep the stations open and to pay the staff. [quote]The Department for Transport says pump prices paid by motorists have fallen by just 7p despite a 10p fall in wholesale prices since April.[/quote] Maybe this happened because both the downturn and increases in prices of petrol led to less petrol is being sold. The 3p probably would be used to cover the amount of money lost in revenue. Which is not much anyway. Cutting the amount of money the forecount can gain is putting a plaster on an open wound. The price will still rise and will be back to the normal levels within a year or so, so what's the fucking point!

[QUOTE=Stockers678;36134187]The vast majority of the cost of petrol is due oil spectulators and high taxes. The amount added by petrol stations is a tiny fraction of the total cost of petrol and is used to keep the stations open and to pay the staff. Maybe this happened because both the downturn and increases in prices of petrol led to less petrol is being sold. The 3p probably would be used to cover the amount of money lost in revenue. Which is not much anyway. Cutting the amount of money the forecount can gain is putting a plaster on an open wound. The price will still rise and will be back to the normal levels within a year or so, so what's the fucking point![/QUOTE] That is 3p per litre, which, if you have a 60 litre tank, then that is £1.80. When you fill up say, 20-30 times a year, that becomes £50-60. And they do this several times a year. Also, there is no real reduction in petrol usage, if anything, it is increasing. I agree 3p may be negligible, however it has been 3p 20 times.

[QUOTE=NeonpieDFTBA;36134376]That is 3p per litre, which, if you have a 60 litre tank, then that is £1.80. When you fill up say, 20-30 times a year, that becomes £50-60. And they do this several times a year. Also, there is no real reduction in petrol usage, if anything, it is increasing. I agree 3p may be negligible, however it has been 3p 20 times.[/QUOTE] Well maybe, but my last point still counts.

It's a bit rich asking the garages to charge less when the majority of the cost of petrol goes towards taxes anyway. I'm happy the prices are coming down and stuff, but it does seem a bit cheeky to force them to lower prices when almost all of the money goes to the government anyway.

Even if you ignored the tax it doesn't change the fact that people are being ripped off. If the wholesale price of petrol drops then that saving should be passed onto the consumers. To be honest I would say its bordering on price fixing, I am surprised they have never been investigated for it.

Now the US needs to follow. [sp]Or just audit the companies. If the prices need to be this high, that will show it.[/sp]

[QUOTE=areolop;36137851]Now the US needs to follow. [sp]Or just audit the companies. If the prices need to be this high, that will show it.[/sp][/QUOTE] Actually, the US government does a lot to keep fuel prices to what they are. If they didn't provide oversight, the prices would be like they are in most of Europe...

bollocks most garages work on a margin of about 3p a litre. A lot of them are shutting down because they can't make enough to cover the overheads. you can only sell it at what you buy it for. blame the greedy cunts in the treasury not the forecourts

Coupled with supermarkets selling cut price shit fuel bumped up with ethanol, the independent garage won't last much longer. Support them!

Most of the income from gas station are the shops that are sometimes in them with all kinds of groceries or magazines. I once read about it and my father used to do some financial stuff for them, they make jack shit on the sold petrol but more on the sold goods that they sell in their shops. Sometimes also the carwash.