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AA calls OFT report on Petrol Pricing "a whitwash"


SillBill

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I tend to agree with the AA on this, when the government rakes in 60% of the price in Duty and VAT, what is there left to play around with? Although the Oil companies are not squeaky clean either, falling crude prices don't make their way to the pumps as fast as when crude prices go up.

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woodchip

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If Government did not get the tax on it, the English system would collapse

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namtas

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fourm member

**A man went to the Job Centre and was asked what job he'd had. 'I was an independent petrol retailer but when a new supermarket opened I didn't cut my petrol prices because I didn't want people to think I was involved in price fixing.'**

Job centre staff to man
'sorry mate you should have cut your cost earlier and you might have still had your business, however if you really want a job that new supermarket is looking for forecourt staff@

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namtas

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Forum Editor. fourm member

Your are missing my point completely

My illustration was to point to what seems to many as evidence of price fixing on the high street and how only severe competition breaks that link.

Obviously neither of you have noticed that forecourt prices on the high street are as close and that when one change they all change within hours.

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fourm member

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namtas

You are the one missing the point and, by so doing, illustrating why the OFT concluded as it did and why 'the man in the street' is not a reliable source.

There is no product differentiation for petrol. Oil companies try and convince people they have magic additives but the truth is most people couldn't tell the difference between differnt brands of fuel.

That means that if Tesco charges £1.39 a litre the independent half a mile down the road can't charge £1.42 a litre. If he cuts his price to £1.39 some people will see it is as price fixing. But it isn't.

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spuds

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"most people couldn't tell the difference between different brands of fuel"

And there's probably a very little simple explanation for this. But I won't bore you with the details but perhaps suggest that you ask the next tanker driver you see delivering to a supermarket forecourt?.

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oresome

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Apart from when on holiday, I cannot remember the last time I used other than a supermarket filling station.

With a range of around 650 miles on a full tank, it's easy to wait until the next shopping trip to fill up without going out of my way.

Tesco or Sainsburys points are an added incentive.

The independents are mostly closed now and naturally the supermarkets are no longer as keenly priced as they once were. That's business.

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spider9

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spuds "But I won't bore you with the details.."

I think we might all be very interested if you could explain why supermarket petrol, in your view, is inferior to that of independent garages.

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spuds

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spider9

Perhaps you should read and study my comments more clearly, and not make wild guesses or assumptions. Where did I say "inferior" or anything else you have suggested?.

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spider9

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spuds

I accept I may have misunderstood what you wrote, but can you still explain why you suggest I should talk to a tanker driver and what it is I should be asking him - and for what purpose?

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fourm member

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spider9

spuds is hinting at the idea that all fuel comes from the same tank and there is absolutely no difference between brands.

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