Fuel Prices

[rob murray]

According to the Inverness Courier, Tesco's have dropped fuel prices to .90p to match Morrisons. The Courier claim that they have been instrumental in canvassing for lower prices with Morrisons reacting first as followed by Tesco. Local MSP also suggests that ultimatly giant retailers always react to public pressure / public buying power. As a local tactic people should by pass tesco wick and buy locally, could force tesco into dropping prices.( at least short term )

At the end of the day tesco dropped prices in Inverness because of competition, what is interesting is how long the price cut ( across both retailers ) will last !

[JammyDodger69]

Something needs to be done, it's really getting stupid the price of fuel, it seems tho they will drop the prices to keep everyone happy then a few weeks later it starts to creep up again.

[rob murray]

What we are seeing in Inverness is the effects of a structured "oligopoly". An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high i.e. a large % of the market is taken up by the leading firms : in tis case Tesco, Morrisons. Another important characteristic of an oligopoly is the interdependence between firms. This means that each firm must take into account the likely reactions of other firms in the market when making pricing and investment decisions.

In other words, in Inverness the oligopoly structure plays to norm, no one firm actually dominates the market this showing a high degree of interdependance, so when one lowers prices others have to follow. In Caithness, due to the absence of competition and low market interdependancy, the dominate firm ( Tesco ) has no pressure to lower prices.

So in economic terms the only way that fuel prices will fall is if customers only use one outlet for fuel, causing tesco to retaliate with short term price cuts. Long term the only way a consuner can win would be if planning permission was structured around ensuring ( legally ) that tesco and the like sell fuel at a national average price. Other than that encourage another large retailer to open up and perhaps we could get an Inverness effect. Dunno if planning authorities have this power, but as far as I see it thats the only weapon left to protect small rural communities...anybody else got any alternatives ???

[bekisman]

Simple answer; if those short-sighted Councillors had not refused ASDA in Thurso we'd have a fuel outlet at NATIONAL prices, and with Tesco just 20 miles away they too would react..

[Stargazer]

Petrol in Asda - Elgin was 91.9p per litre on Sunday. Tesco Culloden was 95.9p on same day.

[Highland Laddie]

Tesco Wick today 94.9

[COACHMAN]

Highland Fuel Diesel Card .912 Ppl Today.

[mr do dar]

Highland Fuel Diesel Card .912 Ppl Today.
how do you get one of them cards ? would be great if you could tell everyone that uses as much diesal i do