jamboj Posted November 21, 2008 Share Posted November 21, 2008 Quick question. Oil is, according to the BBC, 2/3rds cheaper than it was in July, though the price of petrol is only 10% down from the same time. Why isn't this massive reduction being passed on to drivers? Seems like a similar story with the interest rates, which many banks aren't passing on (in full) to the public... Does something need to be done about all this?? Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted November 21, 2008 Share Posted November 21, 2008 Have you seen the exchange rate of the pound against the dollar? Link to comment Share on other sites More sharing options...
Ulysses Posted November 21, 2008 Share Posted November 21, 2008 Have a look at this link: http://www.theaa.com/motoring_advice/fuel/ Summarising what it says: Back in July, when crude oil prices were in or around $136 a barrel, the national average price of regular unleaded was 119.5p per litre. Of that, the tax element was 68.1p, and the tax-exclusive price was 51.4p. At that time, the sterling price of a barrel of crude oil was about ?68 (because $1 was worth about 50p). Now, when the crude oil price is about $51 a barrel, the national average price of regular unleaded is 94.9p per litre. Of that, the tax element is 64.5p and the tax-exclusive price is 30.4p. At this time, the sterling price of a barrel of crude oil is about ?34 (because $1 is worth about 67p). So crude oil prices (in sterling) have fallen by 50%, the price of unleaded at the pumps has fallen by 21%, and the "pre-tax" price has fallen by 41%. There won't be a direct correlation, because presumably the other costs of the petrol (the costs of the oil companies and garages) didn't fall between July and today. But a 50% fall in crude prices compared with a 41% fall in the "pre-tax" price at the pumps suggests that the oil companies and garages are passing on the price cuts to consumers. The Chancellor, on the other hand.............. Link to comment Share on other sites More sharing options...
Goose Baxter Posted November 21, 2008 Share Posted November 21, 2008 Can we see the fuel prices staying at a low for some time or do we expect them to shoot right back up at anytime? Link to comment Share on other sites More sharing options...
Guest GhostHunter Posted November 21, 2008 Share Posted November 21, 2008 Asda just dropped their prices to 90p a litre.... Also - check here for cheapest in your area. http://www.petrolprices.com/ Link to comment Share on other sites More sharing options...
Boaby Ewing Posted November 21, 2008 Share Posted November 21, 2008 Can we see the fuel prices staying at a low for some time or do we expect them to shoot right back up at anytime? Oil should stay comparatively low throughout 2009. It'll be interesting to see what happens in a few years time though. Link to comment Share on other sites More sharing options...
chester copperpot Posted November 21, 2008 Share Posted November 21, 2008 Oil should stay comparatively low throughout 2009. It'll be interesting to see what happens in a few years time though. Link to comment Share on other sites More sharing options...
Nucky Thompson Posted November 21, 2008 Share Posted November 21, 2008 What I don't understand is that last year before the petrol hike unleaded and diesel were only a couple of pence difference in price, now oil is cheaper unleaded seems to be shooting back down but diesel is still about 15p dearer. Link to comment Share on other sites More sharing options...
Boaby Ewing Posted November 21, 2008 Share Posted November 21, 2008 What I don't understand is that last year before the petrol hike unleaded and diesel were only a couple of pence difference in price, now oil is cheaper unleaded seems to be shooting back down but diesel is still about 15p dearer. In very simple terms, there's too much unleaded petrol getting made at refineries in the US and Europe, and not enough diesel (there's a long term shift to more diesel cars in Europe and the refining capacity hasn't kept up). Refineries can try and maximise production of diesel (and they are because there's more money there... while unleaded has at times actually lost them money this year) but it's a complex business and you can't just switch a refinery to making say 50 pct diesel with a click of the fingers. Diesel prices are predicted to stay higher than unleaded for the next couple of years at least -- whether the savings made due to its greater efficiency is worth it on the wallet, I guess depends on your car and your driving habits. Link to comment Share on other sites More sharing options...
Jambo66 Posted November 21, 2008 Share Posted November 21, 2008 Since it costs more than $60 a barrel to get the oil out of the ground in the first place, you can rest assured that prices will rise sooner rather than later. Link to comment Share on other sites More sharing options...
scooba1874 Posted November 21, 2008 Share Posted November 21, 2008 hopefully they stay low for a very long time! im just about to start driving:) Link to comment Share on other sites More sharing options...
Rawrrrrrrr Posted November 21, 2008 Share Posted November 21, 2008 They have dropped about 30p in a few months so the cost is clearly being passed on. Re diesel and unleaded, as said more unleaded made and the diesel refining process is more complicated thus the cost difference. Reckon we could still see them drop another few pence too Link to comment Share on other sites More sharing options...
Swimmer Posted November 21, 2008 Share Posted November 21, 2008 Petrol price on the forecourts is related to the price that they buy the crude oil. Therefore there is always a lag on the price of petrol as the old stock is used up. Diesel as DDLN stated is higher because the demand outstrips supply. The refineries cannot keep up with demand as production capacity of diesel has not been increased which basically makes it rarer, thus higher in price. Link to comment Share on other sites More sharing options...
yvonnejambo Posted November 21, 2008 Share Posted November 21, 2008 I would be happy if it went to under ?1 for unleaded in my area, but to get to the cheap petrol stations I have to drive 60 miles to get there. Normally do fill up when down in Inverness though and only use local garage to top up. Link to comment Share on other sites More sharing options...
Cigaro Posted November 21, 2008 Share Posted November 21, 2008 89.9p at Morrisons Ferry Rd. Link to comment Share on other sites More sharing options...
Nucky Thompson Posted November 21, 2008 Share Posted November 21, 2008 Re diesel and unleaded, as said more unleaded made and the diesel refining process is more complicated thus the cost difference. But has this only happened in the last year because the difference was only 2p before last years hike. Link to comment Share on other sites More sharing options...
festerlehearts Posted November 21, 2008 Share Posted November 21, 2008 were all gettin ripped of i think diesel should be around the 85 p per litre gas stations are hikin pricess up ....bp are the worse i dont go there and i wont go there should never be over a pound a litre its a joke Link to comment Share on other sites More sharing options...
MackaysCentreSpot Posted November 21, 2008 Share Posted November 21, 2008 89.9p at Morrisons Ferry Rd. Filled the car up there this morning and also had a 5p off a litre voucher so it only cost ?40 to fill the car up fully. Not cost so little in a very long time. But still amazes me how the minute the price of oil goes up the petro stations put their prices up immediately but when it comes down they state that it will take a while for the decrease in price to filter through. Link to comment Share on other sites More sharing options...
Jambosimmy Posted November 21, 2008 Share Posted November 21, 2008 were all gettin ripped of i think diesel should be around the 85 p per litre gas stations are hikin pricess up ....bp are the worse i dont go there and i wont go there should never be over a pound a litre its a joke what about your nectar points!!! Link to comment Share on other sites More sharing options...
Miller Jambo 60 Posted November 21, 2008 Share Posted November 21, 2008 They have dropped about 30p in a few months so the cost is clearly being passed on. Re diesel and unleaded, as said more unleaded made and the diesel refining process is more complicated thus the cost difference. Reckon we could still see them drop another few pence too The bloomin yanks still get it far cheaper than us. Brown and his conn men still screw us in taxes on fuel. In fact we get screwed everywhere in this country. GAS, ELECT,ROAD TAX ,COUNCIL TAX, FOOD. Link to comment Share on other sites More sharing options...
Cigaro Posted November 21, 2008 Share Posted November 21, 2008 The bloomin yanks still get it far cheaper than us.Brown and his conn men still screw us in taxes on fuel. In fact we get screwed everywhere in this country. GAS, ELECT,ROAD TAX ,COUNCIL TAX, FOOD. CLOTHES, TV LICENSE, MOON BOOTS Link to comment Share on other sites More sharing options...
Boaby Ewing Posted November 22, 2008 Share Posted November 22, 2008 Filled the car up there this morning and also had a 5p off a litre voucher so it only cost ?40 to fill the car up fully. Not cost so little in a very long time. But still amazes me how the minute the price of oil goes up the petro stations put their prices up immediately but when it comes down they state that it will take a while for the decrease in price to filter through. That's not strictly true -- when crude oil spiked to $147 back in July it wasn't all passed on at the pumps. Prices have fallen faster this time around due in part to the supermarket price war that kicked off. Wholesale gasoline in Europe has tanked even faster than crude oil the past couple of days so you should see further savings in the next week or two. Link to comment Share on other sites More sharing options...
Boaby Ewing Posted November 22, 2008 Share Posted November 22, 2008 Since it costs more than $60 a barrel to get the oil out of the ground in the first place, you can rest assured that prices will rise sooner rather than later. If you're talking marginal cost of production (deep water sites off angola or brazil, oil sands in canada etc.) then $60 is a mibbee, if not $80. But out of the ground in Saudi? Bollocks. Though the Saudi's need oil at about $50 (minimum) given the massive role it plays in their public finances/economic development plans -- even if the recovery in the dollar since July has helped them a bit (they tend to get paid in dollars for their oil, but import in euros due to geographic proximity). However you're right in that the big drop in investment in future oil production (because of the price collapse/difficulty of getting funding during the credit-crunch) could well see prices soar again once the world economy/demand recovers. Oil contracts for delivery in 5 years time are still above $80 a barrel. Link to comment Share on other sites More sharing options...
Sharpie Posted November 22, 2008 Share Posted November 22, 2008 We have gone from a high of $1.47 a litre in the summer, to gas I just filled with today at $.88. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted November 22, 2008 Share Posted November 22, 2008 The bloomin yanks still get it far cheaper than us.Brown and his conn men still screw us in taxes on fuel. In fact we get screwed everywhere in this country. GAS, ELECT,ROAD TAX ,COUNCIL TAX, FOOD. And bring on the pre-budget report. You'll get some sweeties handed out on Monday to be repaid with interest a couple of years later through higher VAT! Link to comment Share on other sites More sharing options...
TNCASTLE Posted November 22, 2008 Share Posted November 22, 2008 I work in Dubai where petrol is "free" for all practical purposes (pound a gallon). I lve in Australia and the Dirham is linked to USD. So we just had a 38% pay rise based on AUD-USD exchange rate!!! Australia is Donald Ducked however rught now. Link to comment Share on other sites More sharing options...
Guest GhostHunter Posted November 22, 2008 Share Posted November 22, 2008 89.9p in Supermarkets today.... Link to comment Share on other sites More sharing options...
Boof Posted November 22, 2008 Share Posted November 22, 2008 89.9p in Supermarkets today.... 111.9p for unleaded in Shetland yesterday. And 121.9p for Diesel. Link to comment Share on other sites More sharing options...
stanlet Posted November 22, 2008 Share Posted November 22, 2008 i'm converting to cooking oil ! Link to comment Share on other sites More sharing options...
troonjambo Posted November 23, 2008 Share Posted November 23, 2008 The bloomin yanks still get it far cheaper than us.Brown and his conn men still screw us in taxes on fuel. In fact we get screwed everywhere in this country. GAS, ELECT,ROAD TAX ,COUNCIL TAX, FOOD. the yanks dont have free healthcare or universal subsidised education well worth the money doug Link to comment Share on other sites More sharing options...
irontart Posted November 23, 2008 Share Posted November 23, 2008 I had a 5p off tesco voucher so went out my way to fill up on way home and subsequently smashed my vehicle into a piece of metal.... savings made: petrol 2 pound cost of repair: 750 pound! by my calculation i'm 748 pound down.... Link to comment Share on other sites More sharing options...
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