But anyways in America Shell only sells their petrol at their gas stations. Or by partnering with other businesses. So you'll find Shell gas stations, where they own the whole store and sell their gas from(Opposed to other stations that take what they get at the lowest price) so it looks like they have nice margins. For whatever fucking reason they rarely have the cheapest gas though. But for partnering they are exclusive gas dealer for another convenience store Casey's; so they have exclusive deals don't sell everywhere, it's all fixed income essentially. A grocery store near me has marked up food and gives me discounts on Shell gas to be used at the grocery store's station with only Shell gas, or at Casey's or a shell station. Because I own oil positions that aren't Shell and the other store is cheaper I just lose money shopping there. 3 of the 4 closest stations are Shell, all cost more than the other station and have created themselves a monopoly(or tried/trying to).
So they make exclusive deals and sit on these, their margins are pretty good and make a profit I assume.
Then next comes their lobbying for gas taxes. They lobbied the EU and got them to raise petrol tax. They tried in America a year ago and failed. This is to stop their competitors from selling as much petrol since with higher taxes less is bought. They want to sit on their margins from their deals and starve everyone else out.
They don't actually seem to eager to expand, they want to weaken their competition, not get bigger than them. This is why I don't like them as a stock. The beginning is just why they piss me off where I live.
Something such as low gas prices making people not want to shop at a certain grocery store because the other is cheaper and there's not as much to save on gas can end a partnership and fuck them up for awhile. I think their business strategy is ass, and that's why I wouldn't touch that shit.
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