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For more on marking an answer as the "Best Answer", please visit our FAQ.Supermarkets have national agreements with the major refiners. These give them wholesale prices, (as you'd expect), plus facilities to pick-up loads of fuel in their own tankers from local depots. So, you might be buying fuel from any of the majors and the supermarket is just a reseller. Tesco undercutting the oil majors by 5p/Ltr is not a great trick. a) they don't have any of the overheads of crude oil exploration/extraction/transport ashore/refining/distribution but they DO have thousands of products to sell you which generate their own, (sometimes excessive), profits. As something like 73% of fuel cost is Government tax + duty, you can work out just how much of that 5p/Ltr is funded by Tesco and how much is funded by you, the taxpayer. Not sounding quite so generous now ?