For those new to CabbieBlog or readers who are slightly forgetful, on Saturdays I’m republishing posts, many going back over a decade. Some will still be very relevant while others have become dated over time. Just think of this post as your weekend paper supplement.
Man the pumps (22.02.11)
I read an interesting article regarding the fuel rises of late. Someone with more time on his hands that is really healthy came up with these interesting figures. Being the same age as me he started driving in 1965 and according to his calculations, the national average wage was £700 a year or around £13 a week (I was on £5 per week, but no mind), and I was paying four shilling (20p) for a gallon of diesel. That meant I could buy a total of 67.5 gallons if I was earning £13 a week. The national average pay today is £22,000 a year or £423 a week and the average price of diesel is £5.81 a gallon, so I can now buy 73.15 gallons of fuel with a week’s wages. As a percentage of my earnings, I’m paying less for fuel than I was 46 years ago. So why do I get angry over the cost of motoring or is it that as a cabbie I’m buying over £120 of the stuff a week?
This simple “back of a fag packet” calculation would indicate that we have nothing to complain about when it comes to fuel prices, for they are charging less in real terms than they were 40 years ago. Should we be concerned about the companies that sell the product, who cares that Shell was raking in £1.6 million an hour in the final quarter of last year? Well, yes we should.
With oil reserves becoming so inaccessible it produced the fiasco that BP found itself in the Gulf of Mexico last year. And now with proposals to drill under the polar icecaps, and all the difficulty that will entail, not to mention the possible cost to this fragile ecosphere, you would think that the diesel for my cab would be remorselessly rising faster than the cost of living. But according to my fag packet calculations that is not the case.
For more added value can be obtained from processing the black gold. Shell makes the vast bulk of its profits on the “upstream” side of the business – producing oil and gas – rather than the “downstream” refining and petrol sales. These by products are much more profitable than flogging diesel to London cabbies, which after all are only going to burn it and come back for more.
It is for this reason that oil companies are increasingly trying to alienate themselves from the motorist. Take the typical petrol station, its forecourt is dirty, fuel often leaking from nozzles and covering your hands with diesel, and here’s the rub: Notices that tell the motorist – and only the motorist that he’s dishonest. The motorist is photographed from every angle while you brace yourself from the wind that always seems to blow through these soulless places. There is on the forecourt a presumption of guilt. On each pump the sign reads: “Make sure you have sufficient funds BEFORE you fill up. We will prosecute anyone who drives off without paying for their fuel.” And this might surprise some, at night garages insist on payment up front, so you have to queue up in the cold twice to pay (the second time is because the high prices make it impossible to stop at the desired amount). When paying up front I once requested a receipt and I was told once by the poorly paid attendant I’ll give you a receipt after you have filled up. My reply was of course: “If you don’t trust me, I’m hardly going to trust you”.
If you are lucky to enter the warmth of the shop what do you find? Well, if it is in Chelsea or Fulham everybody doing their weekly shop. So you have to queue as if it was Tesco on a Saturday morning. And here’s the thing: those shoppers don’t have to pay up front for their frozen peas, milk or bread, nor are they told as they peruse the shelves they are potential thieves.
So here are my suggestions taken from when I was paying 20p a gallon: Stop serving coffee and selling groceries; man the pumps and clean the forecourt; have you staff in smart uniforms and pay them enough so they actually do care if I buy diesel; trying getting your attendants to fill the tank so they get covered in diesel and not me; and get them to wash my windscreen if it is necessary. But it’s unlikely to happen for you see the multi-national oil companies only make a few pence profit per litre – some estimates are as little as 2p a litre.
Finally, and I promise this is the last gripe, why, with previous Governments spending a fortune encouraging motorists that drinking and driving don’t mix, are these shops which happen to have petrol pumps attached to them, allowed to sell alcohol?
I remember buying 4 bottles of wine at an M&S attached to a petrol station, and thinking the same thing.
I started driving in 1969 and 3 gallons of petrol were less than £1. But I wasn’t driving so much then. Once you are on a fixed income as a pensioner, as I am now, the fuel costs spiralling can make an unwelcome dent, although I agree that as a percentage of an average working income, they are much the same.
Though these days of course, they also use the fuel price rises to add costs onto groceries and other purchases. I don’t ever recall them doing that in the 1970s.
Cheers, Pete.
LikeLike
I think we had both get a bicycle!
LikeLiked by 1 person