Why does the price of petrol vary so much around the country?

Question

I live in Somerset but can buy petrol cheaper in London, when I am working there. I would have thought there would have been an investigation by the OFT the way that petrol prices can vary.

Answer 1

Interesting question. It's all to do with "market forces" and they work these figures out very carefully. They price the fuel according to what the market will stand, basically. The more competition there is, the cheaper the fuel.

I lived in a refinery town where there was a petrol station which was actually supplied THROUGH A PIPE from the adjacent refinery. Yet you could go 5 miles to the next town and petrol would be cheaper there. So it's definitely nothing to do with distribution costs.

Answer 2

Tesco (and the rest to be fair) suit their prices to the area. If it is classed as a high income area the price is higher. I live near a Tesco but there is another maybe 5 mins further along. The further away one is at least 2p dearer on almost everything, food, cigs, bread etc. This is because it is a slightly nicer area.

Answer 3

I dont know why, there are 2 tesco's within 10 miles of each other where I live and they charge different prices...

I found that the below website shows the where sells the cheapest petrol in your area.

http://www.petrolprices.com/

Answer 4

taxes, delivery charges and such, some thing we deal with in america, i live in the middle of the USA and gas prices are typically cheaper here than on the coast.... i.e. California is 3$ a gallon, here its 2$ gotta love being a hillbilly :)

Answer 5

It's got nothing to do with the OFT. A retailer can charge whatever they want.

Answer 6

Cos we are being ripped off!!! gggrrrrrrr get it back to 75pence!!!!