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Saturday, February 14, 2015

Whatever happened to good old healthy Competition?



The cost of petrol for the car and truck in Spain is by no means the most costly in Europe, but it is expensive. In the time that I have been living here the cost has risen steadily from under a euro a litre to as much as 1.40 something. That has been a reflection of the underlying cost of Brent crude per barrel, so we have simply grinned and bore the cost. Perhaps we curtailed our trips by making certain that we got to do several things in one journey.

We didn't have much in the way of choice, but wherever and whenever we heard of a fuel station selling at a discount we all headed there. Then, things changed. Someone opened a fuel station where there were no staff in attendance, and the price per litre reflected the savings. Then, to top that, another chain opened with staff but at rock bottom prices at the pump. I have not looked back since.

The latest news is that those stations that are not matching the low prices are suing the owners for selling cut-rate fuel, and some communities are banning the selling of low cost fuel altogether. What kind of foolishness is that?

If the group of operators selling low cost fuel can do it, and they number several different companies, why not the others who insist on selling at the higher prices? I cannot understand the logic. I save about ten cents a litre, which I estimate will result in about 300 euros a year saved to be spent on car maintenance. Why would I not take that savings?

 I'm shocked by the action to restrict the competitive spirit, and also to be so blatant about goughing us motorists. I think it's time to grow up and act like businessmen and everybody lower your prices to a level that is finally fair for the consumer.

Copyright (c) 2015  Eugene Carmichael