Why are fuel prices not going down?

randomnut

Hi,
I noticed today that brent cruse oil is currently hovering at around $110 a barrel. While this is not exactly cheap, it is nowhere near the 140/150 highs of 2008. In fact the price dropped to the mid .40s around 2009 time, and yet we are still paying the highest pump prices ever.

I paid 1.42/l for diesel the other day and I don't remember it ever being much more than that??

Are we blatantly being ripped off and the oil companies shamelessly profiteering at our expense or is there a genuine reason that despite oil prices being cheaper the price at the pumps is just not going down, but in fact going up??

interstellaflyer

randomnut wrote: »

Hi,
Are we blatantly being ripped off and the oil companies shamelessly profiteering at our expense or is there a genuine reason that despite oil prices being cheaper the price at the pumps is just not going down, or in fact going up??

Yes we are being ripped off but not by the oil companies, most of it is tax and then you pay VAT on the tax.

Trebor16

Back in 2008 the exchange rate was more favourable for us at around $2 to the pound. At its peak in 2008 a barrel of oil would have cost $147 or £73.50. Currently, brent crude is $111 which at the current exchange rate of $1.58 is £70.25. Unleaded back in 2008 reached a peak of £1.20 per litre and diesel £1.30 in my local area. It is currently £1.31 and £1.36.

The increase can be partly accounted for by increases in duty since 2008 and also VAT at 20%.

savemoney

It said on Panorama the other day there is a rise in January I assume its extra duty

seems its an extra 4p