Drivers rush to fill up at UK’s ‘cheapest’ petrol station in Birmingham selling fuel for 1.20p
Drivers are rushing to capitalise on the super-low prices which are being found at Costco.
Motorists and road users are rushing to fill up at UK's "cheapest" petrol station in Birmingham which is selling fuel for just 1.20p per litre. Drivers are rushing to capitalise on the super-low prices which are being found at Costco.
The wholesale warehouse chain is currently charging customers 1.20p for petrol, 1.27p for diesel, and 1.32p for premium unleaded. Taking to HotUKDeals, one driver said: "Most [Costco] branches are only about 1p less than their local Asda or Tesco.
"The only branches that seems to be a bit more cheaper is Liverpool and Birmingham ones." The RAC monitor wholesale prices – those retailers pay – and pump prices daily, covering the UK's big four supermarkets (Asda, Costco, Tesco, Sainsbury's and Morrisons ), plus many other brands.
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It states: "Petrol prices can vary a lot, even over a short distance. Save money every time you fill up with the Fuel Finder feature in the free myRAC app - just download it from the App Store or Google Play. All registered users - whether RAC members or not - can quickly search within two, five or 10 miles to make sure they always get the cheapest fuel around."
The price we pay for fuel at the pumps is affected by a variety of factors, including the global price of crude oil - the oil price chart below shows how this is changing, supply and demand for crude oil and refinery production and capacity.
Other reasons could be the pound to dollar exchange rate, as refined fuel is sold in US dollars, as well as distribution costs, the margin fuel retailers decide to take, fuel duty charged by the Government and VAT charged at the end of every forecourt fuel transaction.
The RAC adds: "While some of these stay largely static - such as the fuel duty rate and VAT - others such as the oil price and dollar to sterling exchange rate can be very volatile.
"These affect the wholesale price of fuel - the price retailers pay to buy the fuel in before they sell it at forecourts, and explain why prices rise and fall.
"While fuel retailers base pump prices on the wholesale cost of petrol and diesel, there is typically a two-week ‘lag’ between pump prices moving to reflect any change in the wholesale price."