Asada, Morrisons, Tesco, Sainsburys all sell fuel together with franchised fuel company outlets and some independents.
They are all alert to competitive pressures and price their fuel accordingly. Historically (and I suspect it is still the case) the major supermarkets priced fuel as a draw into the supermarket shop on which they made far more profit.
We are free to refuel where we want - buy branded or cheapest. It is not worth driving any distance to save a few pence a litre as the fuel used in so doing negates any saving.
Out of interest - the cost of petrol 10 years ago in 2013 was 135p per litre. The current pump price locally is ~145p per litre - a significant reduction in real terms. In summary - there is little or nothing to whinge about.
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It seems clear in my area, SE Staffordshire, that Asda no longer compete on fuel price they're 2p/litre more than the nearby Sainsburys and Morrisons, who themselves are 2p/litre more than local branded filling stations, predominantly Texaco.
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It seems clear in my area, SE Staffordshire, that Asda no longer compete on fuel price they're 2p/litre more than the nearby Sainsburys and Morrisons, who themselves are 2p/litre more than local branded filling stations, predominantly Texaco.
Round here Asda have always sold fuel at 0.2p a litre less (the price always ends in a .7) than Tesco, Sainsbury and Morrison. Its still the same this week. Branded stations have always been more expensive with Shell charging about 7p a litre more last week.
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<< Asda have always sold fuel at 0.2p a litre less (the price always ends in a .7) than Tesco, Sainsbury and Morrisons >>
Yes, well. If one stops to think about buying fuel, the attraction of saving 0.2p a litre looks pretty silly. It amounts to about 10p per fill-up, at the moment about one fifteenth of a litre, which is not enough to take any car an extra mile. So next time you think about going off-route to buy cheaper fuel, ask whether you will actually save any money overall ?
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If you run an EV the ""fuel" is delivered to your door if you have a home charger. During the recent period of high diesel prices I have not heard the haulage industry moaning that much. Presumably their contracts allow them to pass most of the costs on to their customers and so inflation goes up and does not come down or not that quickly as we are all finding out.
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Asada, Morrisons, Tesco, Sainsburys all sell fuel together with franchised fuel company outlets and some independents.
They are all alert to competitive pressures and price their fuel accordingly. Historically (and I suspect it is still the case) the major supermarkets priced fuel as a draw into the supermarket shop on which they made far more profit.
We are free to refuel where we want - buy branded or cheapest. It is not worth driving any distance to save a few pence a litre as the fuel used in so doing negates any saving.
The problem (since the supermarkets enetered the market in the mid 90s) has been that, IMHO, the supermarkets, as you say, used filling stations as 'loss leaders' to attract customers to the store more generally, but what you didn't say is that I think they also used such 'lower' prices to drive out local competition, meaning they then are free to put prices back up after all the local independents have gone.
Whilst my area has some 'branded filling stations, all bar one are well out of my town and on the dual carriageway and trunk roads, and all-bar one of those are high-priced outlets dependent on the wallies who don't in any way plan journeys and refuelling and have to buy fuel mid-journey, e.g. on the extortionate motorway service stops.
The only in-town filling station left (the other one I knew of closed in 2007 - there may have been more in the past before I moved to the town a year before) barely hangs on as it is right next to Tesco and, apart from a period of 3-6 months in the run up to last Christmas, has never been able to out-compete Tesco on price.
Out of interest - the cost of petrol 10 years ago in 2013 was 135p per litre. The current pump price locally is ~145p per litre - a significant reduction in real terms. In summary - there is little or nothing to whinge about.
To be fair, the cost of petrol just prior to the Pandemic was about 120p a litre, so 145p is still an increase of 20%. Even so, there is a lot to complain about, especially when wholesale prices for fuel and power have dropped dramatically over the last 3-6 months, and yet the cost of goods and services, including transportation, are still significantly on the rise. And ICE fuels have only come down relatively slowly. Electricity and gas have not, and in fact are still rising.
You may not be seriously affected by inflation, but many people, myself included, have been, and it has not been an easy time, especially when real world inflation far outstrips (i'd say between 3 and 5x) the 'official' rate, which includes many 'nice to have' items that many aren't buying at the moment.
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The number of forecourts has reduced over the years - in 2000 there were 13100 now reduced to 8400 - I am sure in part due to the actions of supermarkets but also improved typical mpg.
Independents and franchises lost out because they had a lower volume of fuel sales, and no associated offering (eg: food). This is market forces at work - those who provide the best price/service/package win.
Personally - I see these changes as positive - I get better services and prices generally.
Inflation is calculated on a basket of goods representing typical/average expenditure patterns. As an average it applies to few of us. Just as the average height of a male in the UK is 5' 10" but most are below or above.
Unsurprisingly there is a a big difference in expenditure patterns between (say) the retired (mortgage paid off, no direct dependants etc) and younger couple (mortgage, kids etc ) .
Personally I have noticed very high food price inflation (30%??) but lower petrol prices over the last year down 20p a litre over the last year. Don't have a mortgage but I suspect this would be a problem with increasing interest rate. Leisure costs significantly increased.
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I am sure in part due to the actions of supermarkets but also improved typical mpg.
Why do you suggest that 'typical mpg' has improved ? Are there stats, and by how much ?
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I am sure in part due to the actions of supermarkets but also improved typical mpg.
Why do you suggest that 'typical mpg' has improved ? Are there stats, and by how much ?
Here's one article. I have no idea as to its accuracy.
www.statista.com/statistics/780748/new-car-fuel-co.../
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2000 to 2020 average fuel usage for UK new cars per 100km has decreased as follows:
Diesel - 6.3 down to 5
Petrol - 8.0 down to 5.4
Great Britain: new car fuel consumption 2020 | Statista
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2000 to 2020 average fuel usage for UK new cars per 100km has decreased as follows:
Diesel - 6.3 down to 5 . . . . Petrol - 8.0 down to 5.4
Is that a comparison of manufacturer's published figures, or a real-world analysis ? I think those would be rather different, and I'm not sure how my second suggestion might be accurately arrived at.
One possibility is that drivers are less able to maintain high speeds because of increased congestion or managed speed limits ?
Edited by Andrew-T on 08/04/2023 at 09:34
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2000 to 2020 average fuel usage for UK new cars per 100km has decreased as follows:
Diesel - 6.3 down to 5 . . . . Petrol - 8.0 down to 5.4
Is that a comparison of manufacturer's published figures, or a real-world analysis ? I think those would be rather different, and I'm not sure how my second suggestion might be accurately arrived at.
One possibility is that drivers are less able to maintain high speeds because of increased congestion or managed speed limits ?
I imagine it's the official WLTP figures.
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<< I imagine it's the official WLTP figures.
In which case we are not comparing like with like. And 8 down to 5.4 ? Pull the other two !
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Out of interest just looked up the figures for a fairly basic spec Ford Focus - petrol.
2002 1.6 had a combined consumption of 40 mpg and 99bhp
2022 1.0 has a combined consumption of 52mpg and 123bhp
A reflection of technical progress - heavier, more kit, faster, more torque and less fuel.
I accept real life figures may be different to WLTP but this is a broadly consistent comparison.
Can't be bothered to check others but it is evident that low capacity high output engines are now commonplace. Ecoboost was launched in 2012.
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A reflection of technical progress - heavier, more kit, faster, more torque and less fuel. I accept real life figures may be different to WLTP but this is a broadly consistent comparison.
But was WLTP being used in 2002 ? If not, straight comparisons are spurious.
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WLTP was agreed and used from September 2018 for all new cars.
The New European Driving Cycle (NEDC) was implemented in 1997 and defined the tests required to measure mpg.
The Focus 1.0L Ecoboost from 2017 which has the same performance as the later model has a combined consumption of 59mpg vs 53 mpg for the later model.
This means that a comparison of the probably optimistic 2002 mpg with later \WLTP mpg understates the economy improvements over the period.
Edited by Terry W on 08/04/2023 at 23:27
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This means that a comparison of the probably optimistic 2002 mpg with later \WLTP mpg understates the economy improvements over the period.
I'm afraid my natural scepticism makes me doubt that improvements in consumption of the order of 40% or more have been made in engine tech during the last 20 years. I would like to hear from those on here who have kept their own figures and driven the same kind of cars in the same way over that time. We all know how makers contribute to the official figures :-)
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This means that a comparison of the probably optimistic 2002 mpg with later \WLTP mpg understates the economy improvements over the period.
I'm afraid my natural scepticism makes me doubt that improvements in consumption of the order of 40% or more have been made in engine tech during the last 20 years. I would like to hear from those on here who have kept their own figures and driven the same kind of cars in the same way over that time. We all know how makers contribute to the official figures :-)
It may be a combination of economy improvement and changing customer choice, ie buying fewer new cars with relatively low mpg would reduce the average without any technical improvement.
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Another way to look at technological progress:
Search Autotrader for 1.0L cars with more than 100bhp.
In 2023 it is a fairly commonplace spec - there are 15000 in total
In 2006 there are 2 (yes two) - and none before then.
Many on this forum will be of an age where a family size hatch with adequate performance usually cam with ~ 2L engine - Vectra, Mondeo etc. 1.2L is now the norm with similar overall performance and generally greater torque.
I appreciate your scepticism, but would need some convincing with evidence that the comment re fuel consumption was misplaced.
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"2002 1.6 Ford Focus had a combined consumption of 40 mpg and 99 hp"
I had several 1.6 petrol Focus as lease cars from 2002 to 2004 and there was no chance they would get anywhere near 40 mpg.
On a good warm day driven very gently they might do 30 or 31 mpg.
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2000 to 2020 average fuel usage for UK new cars per 100km has decreased as follows:
Diesel - 6.3 down to 5
Petrol - 8.0 down to 5.4
Great Britain: new car fuel consumption 2020 | Statista
Perhaps, but there are about 9M 'official' extra people resident in the UK now compared to then (an increase of 16%+). People also buy high-value delivered goods like TVs, computer/phone products etc at far shorter intervals than back then, which probably means far more vans and HGVs on the roads.
Bear in mind that back around 2000, the price of petrol in 2000 was about 77p/L, diesel probably quite comparable (probably around 80p my guess - I didn't find any figures for diesel during a very swift search, but saw a trend graph starting in 2004), and I suspect that the efficiency cost from well to pump has likely dropped a good deal during that time like a lot of manufacturing had done prior to 2020.
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According to the Office of National Statistics, inflation average 3.4% since 2000 - overall an increase of 115%. This would make the real terms value of 77p per litre 165p today. In real terms prices of fuel have fallen slightly.
Not really sure what high value delivered goods have to do with the price of fuel, nor what efficiency cost is.
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According to the Office of National Statistics, inflation average 3.4% since 2000 - overall an increase of 115%. This would make the real terms value of 77p per litre 165p today. In real terms prices of fuel have fallen slightly.
Not really sure what high value delivered goods have to do with the price of fuel, nor what efficiency cost is.
I was talking about the extra amount of fuel used to offset the improvement in mpg. The 'headline' inflation figures (whether RPI or CPI) cannot be trusted for individual items as it is made up of an artificial 'basket' of goods and services, which does not reflect the upward and downward pressures on any one item, including where improvements in technology and processes significantly reduce the cost of products and services.
IMHO, neither reflects well on 'real world' inflation for most people, in my view, and especially at the moment and/or in either very good or very hard economic times. Any 'adjustments' in the 'basket' are often out of date and do not reflect what the ordinary person experiences.
In the case of oil-based fuels, supply and demand makes up a big chunk of any inflationary changes, but the price we pay is also affected by the actual cost of finding new fields, drilling, refining and transportation costs, and then taxes, which vary quite widely add to that as well.
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The number of forecourts has reduced over the years - in 2000 there were 13100 now reduced to 8400 - I am sure in part due to the actions of supermarkets but also improved typical mpg.
Independents and franchises lost out because they had a lower volume of fuel sales, and no associated offering (eg: food). This is market forces at work - those who provide the best price/service/package win..
I know if one independent who lost out. During the last fuel crisis back in the 90s was it? Our local independent put his prices up and up. The franchise down the road kept their prices the same. Guess who went out of business after the crisis was over?
Edited by Crickleymal on 08/04/2023 at 22:31
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The number of forecourts has reduced over the years - in 2000 there were 13100 now reduced to 8400 - I am sure in part due to the actions of supermarkets but also improved typical mpg.
Independents and franchises lost out because they had a lower volume of fuel sales, and no associated offering (eg: food). This is market forces at work - those who provide the best price/service/package win..
I know if one independent who lost out. During the last fuel crisis back in the 90s was it? Our local independent put his prices up and up. The franchise down the road kept their prices the same. Guess who went out of business after the crisis was over?
Indeed - the supermarkets could - and by and large still can - afford to take a relatively short term 'hit' by subsidising fuel prices at their filling stations in order to drive local indpendents out of business.
After all, that's exactly what they've done with indpendent grocers, butches and to a lesser extent, bakers and win merchants / off licences. And pubs I suppose, who themselves were seriously affected by offies. Sure, some of it is economies of scale, but a lot isn't.
I've noticed that many 'branded' grocery items have gone up in price at the (main) supermarkets (Aldi and Lidl sell very few) far more than the 'own brand' equivalents (which have gone up quite a bit themselves), especially those that the shop knows are long-established favourites that are difficult to supplant with their version.
They now, IMHO, pocket the far bigger difference to subsidise their own stuff (direct competitors or other items, such as 'staple' foods and the rest goes as pure profit. I'd put good money on some of the big supermarkets (aside from Morrisons) making huge profits for 2022 and 2023.
I can't say the same about indie fuel outlets, at least those 'in town' ones directly competing with the supermarkets, not those selling at extortionate prices on trunk roads (IMHO mostly BP franchises). Not helped, in my view, by a certain fuel comparison service that (at least in my area) regularly 'misreads' the only competition to the local supermarket with its own camera van/car and hasn't fixed the 'error' despite being reported many times.
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This independent was price gouging though. He was competing with an Esso petrol station, when I say competing he had about 10% of their sales, but was also operating as a convenience store. He lost all the good will he ever had and closed about 4 months later.
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It could have been the independent being squeezed by the suppliers, buying on the spot market, with the big name forecourts having long term supply contracts.
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