Tesco fuel price in Dinnington

[vinyl]

also A57 there are 3 garages within 3 miles of each other selling at the same price ? so seem to me that there is a lot of price fixing !!!!

 

Its not price fixing if you look at what others are charging and do the same. Folk have to react to their surroundings like a pub if a Wetherspoons opens across the road. Price fixing is where all the folk from different companies sit down together and agree the price they will all charge.

[strangerthe6]

Tesco always seem to be 2 or 3p more expensive than Morrisons and Sainsburys in my area. I think it's because they often give 5p a litre off when you spend £50 so you only actually save 2 or 3p per litre.

 

Then again Morrisons and Sainsburys may offer discounts for spending in their shops.

[swfc2001]

well that means no competition between garages if the sell at the same price so some sort agreement must be there?

[anywebsite]

Asda charge the same price across the UK & places further from an Asda petrol station seem to be more expensive for petrol.

 

swfc2001, if competing garages were agreeing prices between themselves, that'd be price fixing & illegal. Looking at what your competitor is charging & then deciding to charge the same out of your own free choice is perfectly fine, so it can be hard to prove. Most places are going to charge as much as they think they can without losing too much custom, that's going to depend on the size of the market for petrol locally, the number of competitors & what they charge.

 

There doesn't need to be an agreement between them (which would be illegal), they might all independently realise that if they try to undercut their competitors, then the other garages will do the same & they'll all lose profits in the end. It's a similar effect for the customer.

 

Supermarkets used to be better as they were using cheap fuel to try to get more people into their store to buy groceries, but they seem to have given up on price wars now too.

Edited September 15, 2013 by anywebsite

[Dardandec]

I've been filling up at Tesco in Dinnington for over ten years and you do tend to find that their prices are artificially high when they are doing the 5p a litre off at the supermarket till. Other than that, there's not much in it between them and the other filling stations in the area.