Tesco cust services say “we don’t make any money on fuel”

[watchcoll]

its correct, they make virtually no money on fuel after costs. especially when you consider that they (used to) give you a penny back for every litre, and then every three months a lot of people would cash in their clubcard vouchers to pay for all or part of their fuel (effectively tesco footing the bill for it). with the cost of fuel as it is at the minute i expect they had to decide between cutting the points or raising the price to cover the cost.

 

its the same with cigarettes - no profit, its just another one of those things that gets people into the main shop to buy the things that they do make money on.

[HeadingNorth]

No it's not. Duty is levied on a good, service, commodity et al.

 

Tax is levied on an individual.

 

Technically and legally you are correct, but in general layman's usage, any money raised by the government is "tax," and duty would be included in it.

[watchcoll]

also about the vat/duty.

 

it passed a lot of people by last year when VAT was cut, that duty was raised on fuel to compensate so the taxman didnt lose out. however, when VAT went back up, the duty wasnt reduced accordingly. so we are paying VAT on inflated duty! criminal init?

[simondjuk]

I think garages only get about 5p per litre....this has to pay for the staff etc...

 

When petrol was about 119p/litre the breakdown was

 

57p duty

18p VAT

39p for the fuel

5p to the retailer

 

not a huge profit to be made there..

 

5p per litre profit?

 

So for arguments sake, lets say a car holds 40 litres of fuel. 30 cars per hour per pump. 8 pumps

 

So thats £0.05p x 40 x 30 x 8. Thats £480 per hour profit per station

 

They seem to have around 9500 stations across the country so multiply that by £480. Id say thats a pretty decent profit.

[staninoodle]

I used to work for a fuel retailer,the profit was around 5-8p per GALLON,dependant on where you got your supply and if you were tied to a certain retail supplier

[alchresearch]

The Tesco near me is 2p a litre dearer than the Shell about a hundred yards down the road.

 

I don't imagine the Shell station is making a loss so they're making at least 2p on every litre they sell.

[truman]

5p per litre profit?

 

So for arguments sake, lets say a car holds 40 litres of fuel. 30 cars per hour per pump. 8 pumps

 

So thats £0.05p x 40 x 30 x 8. Thats £480 per hour profit per station

 

They seem to have around 9500 stations across the country so multiply that by £480. Id say thats a pretty decent profit.

 

Not profit..they have tp pay staff and run the garage with it....your figures are a bit made up aren't they...could you really pump 40 litres in less than 2 mins..? and you're assuming every pump is in constant use...I don't think they're realistic

[Number Six]

5p per litre profit?

 

So for arguments sake, lets say a car holds 40 litres of fuel. 30 cars per hour per pump. 8 pumps

 

So thats £0.05p x 40 x 30 x 8. Thats £480 per hour profit per station

 

They seem to have around 9500 stations across the country so multiply that by £480. Id say thats a pretty decent profit.

 

30 cars per pump per hour? All pumping 40 litres? Whenever I get to a pump these days it always seems to have been used for £10 or £20. And none of them pump 40 litres in 2 minutes - and 2 minutes is certainly not long enough to get out of the car, open the filler, get the pump, wait for it to zero, pump 40 litres, replace the cap, lock the car, go the the kiosk, pay and shift the car.

 

I call 'nonsense' on your assumptions. The maths is right. The figures you put in are ridiculous.

[Boblet]

5p per litre profit?

 

So for arguments sake, lets say a car holds 40 litres of fuel. 30 cars per hour per pump. 8 pumps

 

So thats £0.05p x 40 x 30 x 8. Thats £480 per hour profit per station and who knows how many petrol stations Tesco have. Id say thats a pretty decent profit

 

But that assumes every driver pays approx £45 per visit, each visit only takes two minutes (not the one's I get stuck behind!), and all the pumps are always in use.

 

I went to a tesco station yesterday at 1.00pm ish - it took me about 10 minutes to "fill up", queue, pay and get back in my car, and there were only about 5 cars there the whole of that time (and I spent £30) - I'm not saying they didn't make a profit, but nowhere near the £480 an hour calculated above - and that doesn't take into account the costs of heat, light, insurance, rates, wages etc

[Vague_Boy]

I think someone is “taking the Michael”.

 

Look up "loss leader" on Google.