Oil price dropped but Diesel still high...Why?

nomoneytoday

The value of the dollar is $1.70 as opposed to $2, so the fall in crude is partially offset by the 15% higher cost in £

Additionally, we are paying 50p a litre excise duty and 18p a litre VAT tax for every £1 litre. 32p a litre to dig, transport, refine and retail a product isn't that bad IMHO.

It's the tax that is out of order - obviously GB has a better spin doctor than BP...

nobblyned

Debt_Free_Chick wrote: »

BP on the A21 in Sussex it was 199.9 last night!!! :mad:

Petrol was ..... 105.9, from memory.

I would assume 199.9 was an error on the board rather than a real price? Probably should have been 119.9?

moonrakerz

Debt_Free_Chick wrote: »

Whilst I "buy" this argument, it doesn't seem to apply when the oil price increases. Then, the pump price seems to go up almost immediately

I explained why this "appeared" to be the case.

Peartree

I understood that the reason for the big differential is that, although diesel is, indeed 'less refined' than petrol it isn't just a case of one process in one plant which is stopped at 'diesel point' or continued to 'petrol point'. Diesel and petrol are made in completely different processing plants and, worldwide, there is a shortage of diesel processing so demand outstrips supply so it is more expensive. I'm sure I read somewhere about new diesel processing capacity coming on line so that the prices would start going back to the days when diesel was cheaper than petrol

I read that, in fact, the price of a barrel of crude actually isn't that significant in the price of petrol/diesel at the pump - the major proportion of the price is refining, distribution and taxes. And in last year all of those things have gone up.

As for the companies increasing the price quicker than they decrease it in line with their costs well like 'yeah'! That's the way of the world isn't it? What can we do - buy shares in the oil companies and try to influence them or vote for a political party you think might have the balls to do it - like none! Hasn't the oil industry been ruling America for the last two terms!

I think this is one instance where we can thank the supermarkets. Their buying power does force the price down. The single biggest factor influencing prices in a given area is whether there are supermarkets trying to compete with each other on petrol price and that influences the other petrol majors in the area. If you look at the variances in price between, say, a BP garage in one town and a BP garage in another and it will depend very much on the number of nearby supermarkets with petrol stations.

*~*Pinky*~*

moonrakerz wrote: »

Diesel is holding its price more because there isn't enough of the stuff - too many people bought diesel cars!

Ah, I didn't know that, thanks! Petrol car for us next time (we are about to buy) as we just don't do the mileage any more to make diesel more economical.

snake16

*~*Pinky*~* wrote: »

Ah, I didn't know that, thanks! Petrol car for us next time (we are about to buy) as we just don't do the mileage any more to make diesel more economical.

Too right, you have to be covering 30K miles plus per annum to justify the extra costs for a diesel on your average car.