Do higher prices mean more profit for Shell Gas (LPG)?
LPG prices are made up of the cost of the product itself, government taxes, transportation, storage costs; and the cost and margin for oil companies to market and distribute the LPG. As when costs increase, there is a level beyond a point that which we are no longer able to absorb these rises and we must pass some of the costs on to the customer. This does not necessarily increase our margin or result in increased profits. Q: I cannot afford to buy your product with all these increases. We understand your concern and we are doing everything we can to keep cost down, may we suggest that you spread the cost of buying your gas by moving on to a Fixed Direct Debit. This is a set amount per month and covers your annual fuel bill, thereby foregoing the expense in the winter months only.