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Fuel: Why does the price vary from one pump to another? News from Auto Plus in your smartphone News from Auto Plus in your mailbox

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Fuel: Why does the price vary from one pump to another?  News from Auto Plus in your smartphone News from Auto Plus in your mailbox

Lately, it’s been crazy at the service station. And it is not for nothing that from September 1 there is a good discount of 30 cents on fuel, which applies everywhere in France, both on gasoline and diesel, as well as on LPG, E85 and even CNG. Good for motorists who have suffered for many months from rising inflation, and with it, fuel prices. It is about the increase in the barrel of oil, connected with war in Ukraine which has been going on since the beginning of the year. So it’s no wonder drivers rush to the station when TotalEnergies offers up to 50 cents off. But no matter what, you’ve probably noticed that not all pumps are priced the same. Why?

A question of margin

The first explanation for this phenomenon concerns the margin. Each trader can really choose their number, and therefore set prices active. Especially since some service stations are located in places where the rent is very high, which explains why the price of fuel is higher. But that doesn’t explain everything either. Because the margin is really very low and is only a small percentage of the amount per liter, only on the order of 1-2%. Suffice it to say that it therefore does not have a major impact on the price paid by motorists. But then what is this difference?

Gap in orders

In fact, the answer lies in the frequency of fueling. If a station is busier, it will order fuel more often and therefore change prices according to the amount it has paid. If the trend is down, then the price will be lower. On the other hand, a service station that takes longer to empty its tanks will be less likely to order gasoline and diesel and therefore display a different price. Therefore, it is this shift that causes volumes to vary from one pump to another.

Author: Mary Lizak
Source: Auto Plus

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