Petrol Price

tpl288

Has anyone else notice that petrol prices at your local petrol station has not adjusted / decreased in line with how crude oil prices (now $77 per barrel) has moved lately?

I recall when crude oil prices were at these levels, unleaded petrol was around 89 p/litre or so, funny that eh? Shell, BP etc...profiteering or is it the govt still making extra taxes from us.

Joke

ExBanker_2

Tesco have slashed a whole 3p off a litre- aren't we lucky!

opinions4u

ExBanker wrote: »

Tesco have slashed a whole 3p off a litre- aren't we lucky!

Gas and leccy bills are apparently directly linked to the price of oil.

I assume a 40% cut in my bill just before I have to turn up the winter thermostat will be forthcoming then!:rotfl:

tpl288

http://news.bbc.co.uk/1/hi/business/7662918.stm

ebyard

When oil was the same price as it is now, and petrol was around 90p/l, the dollar was at a good rate to the pound. Now that it's not, and oil is paid for in US$, our prices are not as competitive.

There is room for a 8p reduction, but not much more until the exchange rate sorts itself out. An 8p cut would help inflation considerably!

Come on Gordon, lean on your mates at Shell etc to cut the price!

iamesbo

Remember petrol is about 75% (?) tax.
So £1 worth will be 75p tax and 25p fuel.
If the fuel halves to 12.5p you are still paying 87.5p, just a drop of 12.5%, not 50%. (approx figures).

tpl288

ebyard wrote: »

When oil was the same price as it is now, and petrol was around 90p/l, the dollar was at a good rate to the pound. Now that it's not, and oil is paid for in US$, our prices are not as competitive.

There is room for a 8p reduction, but not much more until the exchange rate sorts itself out. An 8p cut would help inflation considerably!

Come on Gordon, lean on your mates at Shell etc to cut the price!

okay, but will the power companies (npower, Scottish power etc) cut their prices of gas to retail customers given they seem to always quick to put up their prices blaming on the price of oil. Probably not, Ofgem is too weak or corrupt to enforce it, you really wonder if they are a regulator or just another govt body not doing their job

Money_Grabber13579

but the extra 2p on fuel duty was scrapped for the time being, so there is no more tax on fuel now than there was a year ago. So even with the exchange rate difference, prices could still be below the pound a litre mark. Tax is also a percentage in part i.e.VAT, so when fuel drops in price, tax also decreases. Going on the previous analogy, if fuel were free(I wish!) tax would still be 75p. That's why the government has been raking in the money, and still wouldn't cut the tax. They've gained so much in extra fuel duty recently and the country's still about bust! Guess they spent it in John Lewis.

dunstonh

The price you see takes a few months to hit the pumps. The increases were also not fully passed onto the consumer. So, you should expect the drop to be as sluggish as well. That is the cost of smoothing.

Exchange rate could be the biggest problem going forward on that though.

tomstickland

Cheapest I've seen is 1.02, most expensive 1.14. 12p/litre difference is amazing.

realaledrinker

When prices were on the up, the petrol/diesel differential widened from around 4p/ltr to 12p/ltr. It's still 12p/ltr even though the price has dropped the best part of 20p/ltr. That's the real rip off no-one is talking about!!!