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Fuel Prices


mr_brain
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^^^^

 

No it probably doesn't cost an extra 20p per litre to deliver fuel to shetland, but unfortunately the actual cost of delivery and the price fuel retailers in shetland have to pay to buy their fuel probably bear little relation to each other. I would hazard an educated guess that fuel retailers here can't buy fuel wholesale for the price you saw in Edinburgh recently. The margin on fuel sales is very slim which is why so many fuel sellers in rural areas have either closed or stopped selling fuel.

 

With regard to the Tesco discussion. Although as a consumer I would very much like to be able to buy cheap fuel from Tesco, as a supporter of rural areas I would see it as another nail in the coffin for rural services.

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And this probably is the real point here.

Tesco sells petrol cheaper here 'doon sooth' because they have competition from Sainsbury, Asda, or (in my case) Morrisons. what they would do in Shetland is undercut your local guys until they are driven out of business, then start putting up thier own prices. At the end of the day the difference wont be great. BUT would you rather buy stuff from a local supplier who recycles their profit in the local community, or have a short term gain with someone who then goes and recycles their profit some where else.

me? I'd rather buy local anyday.

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I would hazard an educated guess that fuel retailers here can't buy fuel wholesale for the price you saw in Edinburgh recently.

 

 

Isn't the fuel on shetland supplied by highland fuels? whom im presuming have quite substantial buying power. Will they not also set the price at which it can be retailed at, or at least set the price at which they sell it to the retailers at, therefore dictating profit/margin for the retailer?

 

http://www.highlandfuels.co.uk/

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interesting calculations...

 

A road going tanker could hold say 35,000 litres of fuel and if we assume that the cost of said fuel is 20p higher than mainland and we are buying fuel at retail price which of course wouldnt happen with this amount of fuel, then:

 

35000 x 0.20 = £7000 per shipment, minus cost of boat travel there and back, a drivers time and cost of hire of tanker...

 

its still leaves a very hefty profit and thats not taking into account the real bulk cost of the fuel.

 

What would Northlink charge for transporting this tanker?

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Isn't the fuel on shetland supplied by highland fuels? whom im presuming have quite substantial buying power. Will they not also set the price at which it can be retailed at, or at least set the price at which they sell it to the retailers at, therefore dictating profit/margin for the retailer?

 

http://www.highlandfuels.co.uk/

 

Fuel comes to Shetland in a single shipment which is then split between highland fuels and the company that used to be s & jd robertson - can't recall the name of the new company. They do both obviously set the price charged to the fuel retailer but then the retailer can decide on his own profit margin after that...........I'm not sure of your point :?

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Fuel comes to Shetland in a single shipment which is then split between highland fuels and the company that used to be s & jd robertson - can't recall the name of the new company. They do both obviously set the price charged to the fuel retailer but then the retailer can decide on his own profit margin after that...........I'm not sure of your point :?

 

so who supplies the retailers? highland fuels or the company that used to be s & jd Robertson

 

Id be interested to know how the forecorts arrive at the price at which they retail fuel at...are they requested to not sell below a certain price?

I wonder if the forecorts in Shetland make the same profit as those on the mainland.

 

How does this shipment arrive, are we talking a road going tanker on a cargo boat or a fuel carrying vessel?

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so who supplies the retailers? highland fuels or the company that used to be s & jd Robertson

 

As far as I know both of them do

 

 

How does this shipment arrive, are we talking a road going tanker on a cargo boat or a fuel carrying vessel?

 

It arrives at the G B Oils depot at the north ness by a fuel carrying vessel which I imagine can carry somewhere between 600 000 litres and a million litres. It's a bit late at night for me to be doing sums, but a million litres at 20p each would come to something like £200 grand, and if it costs that to charter a tanker from Grangemouth to Lerwick, then i'm off to buy a couple of tankers!

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Our council among others has embarked on a venture to take freight of the roads and carry it by sea because it is cheaper than carrying it by road, we have the scotish exec applying road equivelent tarrifs to lower the fares on the ferries to the western isles, Who's right, is road or sea the cheapest?

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While everybody has a valid point in their views I find it strange that none of the local retailers of our liquid gold(and dont say none of you come on here) has posted a reply of any kind to tell us how little profit they make off the fuel.

 

Many years ago if I recall correctly i was having a conversation with larry Sutherland, larry reliably informed me they made 2p a litre profit and I had no reason to doubt the mans word.

 

If our local retailers are still making a 2p profit which I doubt very much then somebody is lining their pockets very nicely at our expense and personally I dont care if they are local or further south it cannot continue in the same manner as present.

 

And in all honesty I dont care where they come from if Tesco or anyone else wants to supply me with fuel at near to mainland prices I will be their like a shot.

 

I am happy to say that my family are my priority and I would prefer to be putting the extra money to their needs perhaps take my children for a nice holiday because as it stands at the moment if prices continue to soar they will be lucky if we can afford the fuel to go camping at spiggie.!!!

 

So be it Highland Fuels their counterparts or local retailers it really makes no difference to the final outcome WE AS A COMMUNITY ARE BEING WELL AND TRULY RIPPED OFF.

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Am I right in assuming that for domestic use you can store upto 2,500 litres without becoming involved in oil storage regulations? A heating oil tank would do the trick.

If anyone wants to look into setting up a diesel cooperative and purchase a bulk order count me in. :D

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