Fuel Price Gouging

C

Conan

Registered User
Messages
1,752
At 10.30 this morning I filled up with Diesel at a Circle K at 212.5c .
An hour later passing the same station, the price had risen to 219c
So what happened to the diesel in their tanks in the 60 minutes to justify this price hike?
Surely this is price gouging?
 
Any other stations near theat one ? Perhaps the Circle K adjusted upwards to "align the prices" ?
 
What do you actually mean by the term price gouging? It's a phrase that's being bandied about, I would like to know what is actually meant by it.
 
Shelby219 said:
What do you actually mean by the term price gouging? It's a phrase that's being bandied about, I would like to know what is actually meant by it.
Click to expand...
My point is, the diesel in the tank on the forecourt was probably delivered a few days ago (and cost the retailer whatever the price was even days before that). Increasing the sale price by c7c per litre in the space of 1 hour, is pure additional profit. The diesel in the forecourt tank didn’t cost the retailer 7c more per litre.
Is this not price gouging, despite what their representative body says?
 
But you don't actually know when it was delivered or what price structure that service station is on and paid for their fuel, if it's company owned and run, company owned and leased , privately owned, in a contract, every service station is on a different price structure, but hey it's easier to blame the service station operator by using that term than the causes behind the price increases.
 
Conan said:
An hour later passing the same station, the price had risen to 219c
Click to expand...
That could be said of every price hike. The guy who bought a minute after the hike is gouged compared to the guy a minute before. Surely the wholesale cost of the product didn’t change that much in 2 minutes.
If you were a glass half full kind of guy Conan you would be thinking you got a bargain.
 
Excise duty cut to be discussed by the Government over the weekend for discussion in the Dail on Monday & Tuesday next week. If agreed, this could be implemented by midnight on Tuesday, March 24th/25th. Fair play is good sport. (RTE News)
 
Just an update. Passing the petrol station today, the price is up again, to 229c per litre.
 
Conan said:
So what happened to the diesel in their tanks in the 60 minutes to justify this price hike?
Click to expand...
And when the wholesale price falls does the retailer lower the price of the fuel before or after he empties that storage tank??

My understanding is fuel prices are dynamic regardless of what is held in storage and what they paid for it
They gain on storage stock when prices go up and loose when prices go down, swings and roundabouts??
 
Cervelo said:
My understanding is fuel prices are dynamic regardless of what is held in storage and what they paid for it
Click to expand...
Only partially, according to the talking head for the retailers' association.

We know that any hint of an increase in the price of a barrel of crude results in the motorist/homeowner being hit in the pocket instantly by increased retail prices.

According to the guy I saw interviewed on the news, if the Government reduces the duty on fuels, "it will take several days for the reductions to wash through the system to the consumer." (paraphrasing, but feel free to correct me if I got his overall message wrong) Gouging to continue, even if the Government acts.
 
mathepac said:
We know that any hint of an increase in the price of a barrel of crude results in the motorist/homeowner being hit in the pocket instantly by increased retail prices.
Click to expand...
And likewise it's my understanding that when the price falls so does the price at the pump regardless of what stock is on hand
mathepac said:
but feel free to correct me if I got his overall message wrong) Gouging to continue, even if the Government acts.
Click to expand...
Not a correction as such but I get the feeling and am guessing here that this is a taxation issue and when the tax is charged to the retailer
And my guess is that the excise tax is charged on the day of delivery by the wholesaler and not when customers pays for it
If the excise tax was charged when the customers pays for it then the reduction could happen instantly at the pump
Maybe somebody with more knowledge on pricing and taxation of fuel could clarify??
 
Last edited:
If the duty is cut at midnight on Tuesday it will apply to any deliveries going forward from Wednesday, if you had a delivery in any of the previous days that's the price, no rebate or reduction, service station is going to sell that at a loss, if you're lucky to have low stock on Tuesday and get a delivery on Wednesday at the new price you could reduce the price on Wednesday or Thursday.
 
I must be thinking of something different from excise duties. But my recollection is that when the Budget speech announces any increases in the duty on booze, cigs, fuel etc. it is instant, and I presume the opposite holds when there are reductions though we have scant historic precedent in this latter case.
 
It's instant at the wholesale price from the oil companies to the service station on any delivery after that announcement not on stock already in a service station tank, that has already been invoiced for the previous delivery., so if you get a delivery on Tuesday you will pay the pre announced reduction.
 
With oil prices dropping anywhere between 8% to 13% overnight it may be easier to determine the price-gouging (if any) with the speed in which the price of kerosene falls and the prices at the pumps.

The home heating price began to rise within 48hrs and increased some 70%-80% within the week.
Service stations prices rose a little slower and up to around 20% increase.
 
Duke of Marmalade said:
I presume the opposite holds when there are reductions
Click to expand...
I get the feeling that no, the opposite is not true, when the Government increases tax it's from the date they declare, like midnight on budget day
But reductions in tax (Excise) I'm guessing would be problematic as tax refunds would come into play etc etc
And then there is one little overlooked point that retailers are not legally bound to pass these type of tax cuts on to their customers
Though I'd get the feeling this would be considered a no no in the current climate of rising fuel prices
 
Sister Sara said:
With oil prices dropping anywhere between 8% to 13% overnight it may be easier to determine the price-gouging (if any) with the speed in which the price of kerosene falls and the prices at the pumps.
Click to expand...
Have you read the other thread on this topic? Petrol prices are not determined by the crude oil price. They are set by the refineries.
 
Purple said:
Have you read the other thread on this topic? Petrol prices are not determined by the crude oil price. They are set by the refineries.
Click to expand...

Yes, and notably it has taken 24 days to get to this price - I passed a garage earlier today, diesel €2.32.

As in, there is a lag between the crude oil price fluctuation (overnight) and the petrol pump price fluctuation (shipping, refining, distribution costs etc)

I'm only guessing but if there is any price gouging going on it is probably being done in international waters and out the hands of govts!
 
You must log in or register to reply here.
Back
Top