Is Peak Petrol Pricing Coming to the UK?

Navigating fluctuating petrol prices is hard enough as it is. But now, analysts are warning that motorists could be hit with price spikes on bank holidays, school run hours and other peak times. The movement is backed by artificial intelligence from Denmark-based company a2i Systems, which could hit UK shores in a matter of months.

Behind the ‘secret pricing revolution’

Critics have accused supermarkets of launching a ‘secret pricing revolution’ that will force drivers to fork out during peak times. It’s pegged as the biggest upheaval of fuel pricing in nearly half a century, with sources revealing that British supermarkets are engaged in late-stage talks with a2i Systems.

So, what exactly does a2i Systems sell? According to the company, the next generation computer algorithms actively track and optimise data in order to facilitate dynamic pricing.

Shifting the focus from competitor to consumer

Of course, it’s not uncommon for supermarkets to move prices depending on what their competitors are doing. But according to a2i UK representative Martin McTague, it’s all about shifting the focus from competitors to consumers.

"This way of petrol pricing is completely new to the UK. Currently petrol pumps' prices are very competitor focussed rather than being focussed on the behaviour of customers,” he explains. “This will change that as pumps will make prices based on data just for their own customers. They will know when price sensitive customers are coming, and when customers don't mind so much what they pay."

This could see petrol prices several times over the course of a day, depending on trends. Rates could rise or fall by up to 2p a litre, which equates to around £1 per tank for the average driver.

Real-time fuel pricing

Already used by thousands of companies across the US and Europe, a2i Systems is supposedly modelled on the human brain. Drawing on huge databases of customer information, it actively predicts how both consumers and competitors will behave. For example, if an influx of customers start to fill up their tanks during the afternoon school run it automatically raises the per litre rate. Similarly, if customers taper off at a certain time it triggers a price drop to entice drivers to the bowser.  

An ‘unfair’ and ‘exploitative’ concept

The AA has already slammed the concept of real-time fuel pricing, with in-house fuel analyst Luke Bosdet labelling it as unfair and exploitative. Others have praised the technology, with Jason Lloyd, managing director at Petrolprices.com hailing it as a "holy grail." He maintains that it will revolutionise British petrol pricing, and arm retailers an ultra-competitive edge.

"The petrol industry in the UK hasn't changed at all for about 40 years meaning it is very behind the times compared to other countries,” he comments. “But pumps have been manually raising prices at weekends but this will let them flex their prices on a real time basis, which is somewhat of a holy grail for them."

With petrol prices set to spike, efficiency is front-of-mind. For a closer look at the latest developments, ‘Testing the Lubricating Oil Viscosity for Utility Vehicle Engines’ spotlights the importance of keeping ‘powertrains’ well lubricated, without compromising on fuel economy.