How much do they make?

10:00am Friday 25th May 2012 in Letters

CAN anyone tell me what profit is made on petrol and diesel?

No two petrol stations charge the same. Some supermarkets offer so much off if you spend a certain amount.

Surely they all pay the same when it’s received? The profit made on it must be so high, I bet when the reduction is offered the petrol station must still make a good profit.

So what is the price they pay for it and who controls the price?

The motorist is the one who suffers with such high prices.

BILL YATES Ambleside Drive Headington

Comments (3)

3:02pm Sat 26 May 12

morgeo says...

It's not the price of it but the the tax on it that is too high. But I guess that the garages do make a reasonable profit which any company needs if it is to remain in business.
In Canada the price is about half of that in the UK.
It's not the price of it but the the tax on it that is too high. But I guess that the garages do make a reasonable profit which any company needs if it is to remain in business. In Canada the price is about half of that in the UK. morgeo

5:48pm Sat 26 May 12

Phian says...

I heard the other day that BP make more profit from the sales in their forecourt shops than from fuel.
I heard the other day that BP make more profit from the sales in their forecourt shops than from fuel. Phian

3:37pm Sun 27 May 12

davyboy says...

normally, a garage will make around 3-5p/litre, so the margins are low. supermarkets quite often use petrol as a 'loss-leader' to encourage shoppers in, and they also buy in big enough quantities to get discounts, which is why they can do promotions. garages rely on other items to boost profits, which is why some items are more expensive than larger retailers. the fuel company profits, which look brilliant when announced, actually come from activities other than retailing, such as refining for others, and exploration.
normally, a garage will make around 3-5p/litre, so the margins are low. supermarkets quite often use petrol as a 'loss-leader' to encourage shoppers in, and they also buy in big enough quantities to get discounts, which is why they can do promotions. garages rely on other items to boost profits, which is why some items are more expensive than larger retailers. the fuel company profits, which look brilliant when announced, actually come from activities other than retailing, such as refining for others, and exploration. davyboy

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