Building an achievable fuel pricing strategy

Ove the past 4 decades of working with fuel retailers, we’ve noticed a pattern: The most successful fuel retailers ensure their pricing approach aligns with their brand, is achievable, and is understood across the business. 

Define your brand position and pricing strategy 

Your fuel price strategy should reflect your brand’s value proposition. Customers (and colleagues) should know what to expect from you, and your prices should reinforce that expectation. Take Shell V-Power, for example — it’s positioned as a premium product, so it’s always priced above other fuels at Shell stations and above competitor alternatives. Shells’ price position aligns with its premium customer perception. If Shell lowered its price significantly, customers might assume the quality had dropped, damaging the product’s premium reputation. 

Clear communication leads to effective execution 

Even the best pricing strategy can fail if it isn’t communicated effectively. Transparency across all levels of the business — from leadership to frontline staff — ensures consistency in execution. Everyone should understand pricing objectives and how they support overall business goals. 

All too often, Pricing teams work in isolation. But when site managers, analysts, and leadership share information openly, they allow businesses to adapt quickly to market changes while staying aligned with their strategic pricing goals. This collaboration allows pricing decisions to be made quickly and confidently.  

Achievability is key 

An effective pricing strategy must be realistic. Setting unachievable targets — whether for margin, volume, or market share — will only frustrate pricing teams and lead to inconsistent execution. Your strategy should consider: 

• Market conditions and competitor behavior 

• Wholesale price fluctuations 

• Consumer expectations and brand positioning 

When your strategy is clear and your targets are achievable, your team is more likely to implement them effectively, leading to better pricing performance. 

The bottom line 

A pricing strategy is only as strong as its execution. By ensuring your prices reflect your brand, communicating strategy clearly across teams, and setting realistic targets, you create a framework for long-term success. 

Further reading: 

Kalibrate Fuel Pricing software can help fuel retailers successfully implement their pricing strategy  

Now you have a clearly defined strategy, learn about how to implement it quickly, The need for speed: Why fast price implementation matters