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Petrol pricing question


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I was wondering if anyone can shed some light on this as I have done a quick google and cant seem to find an answer:


Why has BP consistently charged between thirty and fifty cents more a litre this year than its competitors? I dont get it. In my large regional town the average petrol price this year has been between $1 and $1.10 at all stations excetp for BP. BP, despite often being situated across the road from their competitors has charged $1.49 all year. I dont understand why they are charging so much more than others (beyond because they can). Arent they losing business? I guess if they are they can afford to. I wondered if it might have to do with corporate partnerships such as fleets and petrol cards/plans for large organisations, but Caltex also offer those kinds of arrangements and their prices have remained competitive. Im sure there is a reason for it, but I can work out what it is.

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squeekums-the-elf

Simply cos they can and not lose business and they know it.

Many are loyal to bp, swear it's better petrol and will pay up assuming its better quality

They have marketed well and people generally trust the assumed quality

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Is it definitely the same type of petrol being advertised?

Some stations put their discounted price, or ethanol petrol up the top in the big numbers because it’s their cheapest, but the other petrol station may be advertising std unleaded or even their premium unleaded price. You have to read the fine print.

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I feared that might be the case but my brain couldnt handle it so I assumed there must be more to it than what I was seeing.


ETA: definitely. Its been going on all year and I also just did the local petrol price check app thing. Confirmed.

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I am not sure but I find (although we don't have a car but when we do hire one or friends/family tell me) in Sydney at least the more traffic goes by the higher the price


This is not an official thing just what people I know seem to notice

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Maybe it's in a good location? I know that I'll use my closest one even when it's more expensive because it's convenient. When there's a petrol station on both sides of the road and I need fuel, I won't cross the traffic to get the cheaper price.


Or maybe they are doing a market test to see whether they make more at the higher constant price (in which case I hope it fails as that would not bode well for the future of petrol pricing!)

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Funny - I have been watching this as I have been buying from BP for their new rewards program. And it has been the exact same price as caltex/woolies.


So not sure why it is happening in your town. But it's certainly not everywhere.


Granted I pay about 140 a litre on avg as I by 98 only.

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It’s every one of their station in the town though, not one or two but over a dozen and each near others which charge less (with the exception of the large highway rest stops which have no competition nearby) and it’s been all year not just for a few days weeks or months.

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As a pp stated, it's because for some reason they know they can in your town.


Is your town full of company cars/company paid fuel? Maybe they have the monopoly on the charge card acct in town?


If they weren't earning money, they would be reducing the prices quick smart.

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BP is hurting. It makes most of its money from aviation fuel. They have just done a huge merge of several vertical " sub companies". A friend is a former BP managment head office person. She left early this year but still is in contact with people.

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Then why aren't they most expensive for me?


Overcharging would hurt if people shop around - for some reason in OP town they can get away with it. I suspect fuel charge card monopoly.

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Depending where the fuel is coming from they may have chosen a strategy of lower volume at a higher price and will make the same money with reduced transport costs. Especially if their main customers are on corporate cards and are more likely to be buying other consumable items in store.

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OP, I am in the same large regional town as you, and I've noticed that there is definitely a difference between companies. Shell is often fairly pricy as well, but at least they seem to cycle through the lower prices more often than BP - it's a matter of catching them at the low point of the cycle when you need to fill up. APCO is more consistently at a lower price than the other big companies - just this week, their location at the nearby town on the coast was still low when everyone else had gone up to $1.49.

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The only BP in my town is within 5c of every other place in town with the exception of E10, which it doesn't sell. I've noticed a lot of places put their E10 price on their boards but its not clear until you get to the pump. Then regular is another 5-10c more and premium another 5-10c on top.


I've been paying $1.11 for premium diesel for most of the year. I love it.

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I haven't noticed a difference with BP - it will be what the market will bear, I would assume, so there must be some other point of difference for people to choose that station over the much cheaper competitors - either convencience, card, perception of quality or type of fuel?


What I don't get (and hey, I am not complaining, but if it is due to 2020 its the only positive) is why our regional fuel (on a peninsular line) is cheaper than that on the highway or indeed the nearest capital city. Currently $1.09 ($1.29 if you use premium)!

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Not the case either in my regional vic city. I filled up at BP yesterday for about 111 c/l. Have never noticed it to be higher than others, and I always use BP as I have a corporate card.

 


What I don't get (and hey, I am not complaining, but if it is due to 2020 its the only positive) is why our regional fuel (on a peninsular line) is cheaper than that on the highway or indeed the nearest capital city. Currently $1.09 ($1.29 if you use premium)!

 

For several years, petrol has been cheaper here than in Melbourne. It used to always be the other way around!

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OP, I am in the same large regional town as you, and I've noticed that there is definitely a difference between companies. Shell is often fairly pricy as well, but at least they seem to cycle through the lower prices more often than BP - it's a matter of catching them at the low point of the cycle when you need to fill up. APCO is more consistently at a lower price than the other big companies - just this week, their location at the nearby town on the coast was still low when everyone else had gone up to $1.49.

 

Thanks. I must be missing their down cycle because Ive never seen them any lower (WP/G area). My uncle said the same as you at the weekend.

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mumsytobigones

Do some companies only have BP cards and not Caltex and Shell as well? I’ve got all 3 and DH has always had all 3. I can’t imagine only having the one as that would limit you extremely particularly on long haul trips where they have the service centres a few hundred km’s apart.

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