Shell dealer Goran Raven has taken to social media to dispel the myth of forecourt operators employing ‘rocket and feather’ pricing strategies, after dropping the price of unleaded petrol.
The sector has been criticised in recent weeks for prices going up quickly, or rocketing, when wholesale prices increase, but falling more slowly, akin to a feather, when wholesale prices drop.
But today, Raven who runs the Raven’s Budgens forecourt in Abridge, Essex, posted on Facebook that he is rapidly decreasing his prices in response to a reduction in the wholesale price.
After 27 days of continual price rises, he said in the message, the wholesale price of unleaded had “finally gone down”.
As a result he has reduced the cost of unleaded by three pence per litre, to 150.9p.
He went on to say that he could not yet cut his diesel price as despite falling prices in the past 48 hours across all fuel types, he was “still stuck with obscenely expensive diesel in our tanks”.
He adds: “Fingers crossed that’s a bridge we can cross tomorrow. As ever, the second we get cheaper fuel in, we will pass the savings on to you.”
The situation remains highly volatile with fuel prices swinging in response to global events, and the messaging from US President Donald Trump, says Raven. “The more Trump talks peace, prices will go down. If Trump talks war and strikes, it will go up. It really is that simple, we are beholden to the White House now,” he adds
Currently Raven charges £1.89 a litre for diesel which he says he is earning him just 7p margin.
Raven had earlier explained to his customers on social media that because he has small tanks at his forecourt, buying fuel on a daily basis, he had to increase prices immediately they went up at wholesale, but conversely he could react quickly when prices came down.
He said he had just paid £3,400 more for a tanker load of diesel than the day before.
He tells Forecourt Trader : “We have teeny tiny tanks and need a delivery a day at Abridge so when prices go up we get murdered. Conversely though, when they come down we can drop quicker than others.”
He adds: “The Treasury is the only one benefiting from the current situation. Rocket and feather is a catchy soundbite for politicians. If the government really wanted to do something they could play with fuel duty. Most of the pole sign price comes from fuel duty and VAT.
“I have a strong moral compass and will pass savings on. I need to make a profit – enough to pay staff and make enough for my family – but I don’t want to make a killing.”
