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Fuel Pump Prices V Crude Prices


Rusty Nuts

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I know its a complex pricing structure (taxes) but still I feel we are still paying a lot for our fuel.

 

price-surges-since-2005.jpg

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You need to consider the impact of $ to £ exchange rates also

 

 

At the moment it is low at 1.46

 

I actually wish fuel prices were higher.

 

It is a limited resource that will just run out more quickly if it is cheap.

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I'd tend to agree with you.  The Brent Crude price has fallen even further in the last week or so, now down to around $33 per barrel, with some predictions that it could drop further to around $20 in a few weeks time.

 

The Gardian did a good article a while back about the differential between crude and petrol.

 

A few things they point out:

 

1. Crude oil is back to 2004 levels, but petrol is not
When Brent crude oil was last at $36 in summer 2004, motorists were paying 79p a litre for petrol and 80p for diesel. Today, the average is 102p for petrol and 106p for diesel, althoug

2. Motorists are generally not being ripped off by garages
There is a floor on how far the price of petrol can fall. The government takes 57.95p in fuel duty for every litre sold, plus charges another 20% in VAT, so even if the cost of oil was zero, petrol prices would still be around 70p a litre.

3. Diesel drivers probably are being ripped off
The wholesale price for diesel is around 3p per litre below that of unleaded petrol, but the average forecourt price is 4p more. The RAC reckons some retailers are using price falls to increase margins on diesel.

 

Numbers 1 and 3 are annoying but number 2 is scandalous....

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Asda Edinburgh last Tuesday was 99.7p/ltr for diesel and petrol so they have equalised prices for the time being.

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Our local supermarkets have petrol at 99.9 and diesel at 99.7 - first time I've seen that in decades !! :o

 

My brother pays around 75p a litre for diesel in France :cry:

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I actually wish fuel prices were higher.

 

It is a limited resource that will just run out more quickly if it is cheap.

 

Err - the reason the oil price is low is 'cos there's less demand......

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Err - the reason the oil price is low is 'cos there's less demand......

 

 

Actually whilst some drop in demand I think you will find it is mostly excess supply ... especially the US who have doubled their production in the last 6 years and the old OPEC especially Saudi refusing to cut their production to firm up prices as they would have done historically.

 

Some would say this is a deliberate policy to undermine Iran and Russia

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I have need 99.9p about three times in passing, each time with a full tank. I really want some of that action. Its £1.049 here.

- That said, I am not against reasonably high fuel tax, and would infact opt to put scrap car tax and put it on the fuel for me.

Daniel

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