Why aren’t fuel wholesalers charging less?

4 comments

1. Not sure what you’re asking.

   This is what goes into the prices at forecourts.

   Wholesale diesel (90%) 76.57 41%

   Biofuel content (up to 10%) – B7 19.06 10%

   Delivery & oil company 2.10 1%

   Retailer margin 6.67 4%

   Fuel duty 52.95 28%

   VAT @ 20% 31.47 17%

   Numbers are the pence value, percentage is proportion of cost based on 188.82 price per litre.

2. This is a worldwide problem. I’m in Australia, the prices are at an all time high and still escalating. I have friends in America who are also suffering from all time highs. This whole Russia behaviour has got a big spanner in the price works at the moment.

3. Have a watch of [https://www.youtube.com/watch?v=AQbmpecxS2w&t=2s](https://www.youtube.com/watch?v=AQbmpecxS2w&t=2s) to understand why the fuel is so high

   Unfortunately it’s rare a government can force a business to sell their product at a certain price, especially when they aren’t in that country. Fluctuations of pricing is normal and at the moment there is a lack of supply (on purpose might I add) and high demand which means they have increased the price (instead of supply) to compensate.

   The companies who control the supply of oil aren’t increasing the supply and charging high prices to try and limit demand, unfortunately it also means they make more money so they aren’t incentivized to reduce the price.

   Governments are starting to hit them with windfall taxes which is taking money off their profits but it doesn’t seem to be enough to worry them to increase demand.

4. Because the price is determined from supply & demand.

   Right now the supply is low and the demand is high. The price goes up to stop the demand from exceed the available supply.

   If the price was mandated lower, then the demand would exceed supply and people wouldn’t be able to buy fuel – the pumps would be empty.