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Oil at 12 month low
Comments
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That would be nice. How does the calculation work?
Looking at trends, a $2 change in the oil price relates to a 1p change in the pump price. Obviously this depends on constant taxation and a constant exchange rate.
Diesel (dunno about petrol, don't take much notice as I don't buy it) hit a high of 147p. This was on a barrel price of £125.
A barrel of oil has since dropped by $26, which equals 13p.
5-6p has already dropped out. Leaving say 8p.
Include VAT dropping as the price drops, and you end up at around 10-12p.
Therefore, if the drop holds up, we should see 10-15p off the price at the pumps.
As I realise I will be asked for evidence of this $2 = 1p, as it's just the done thing, heres a link from the UKPIA stating exactly that...
http://www.ukpia.com/files/pdf/understanding-pump-prices-april-2012.pdf0 -
I don't understand how luxembourg is a land lock country, (correct me if I wrong,) Has higher taxes yet has cheaper fuel????
Yep someone posted on the Motoring Forum that they were buying petrol in France at £1.09L too."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I don't think the like for like comparison is correct but it's a good example.Graham_Devon wrote: »Looking at trends, a $2 change in the oil price relates to a 1p change
You would need to look at the fixed costs and add them to the cost of the raw material(oil) which is the variable part.
The only part that can drop in price is the variable price which is only about 33% of the petrol price so that's where the only reduction can take place really as tax is 88p and other costs are 7.8p. You then need to take into account exchange rates.0 -
Diesel - Not enough capacity in the UK,large amounts are imported,hence the price difference.
Most UK refineries were built for Petrol production,60-70's.
Just aint no money in refining,over capacity in Europe lack of investment.
Coryton is closing down for good this month also.Official MR B fan club,dont go............................0 -
I don't think the like for like comparison is correct but it's a good example.
You would need to look at the fixed costs and add them to the cost of the raw material(oil) which is the variable part.
The only part that can drop in price is the variable price which is only about 33% of the petrol price so that's where the only reduction can take place really as tax is 88p and other costs are 7.8p. You then need to take into account exchange rates.
I forgot you knew better than the UK Petroleum Industry Association.
My bad.0 -
Yes sorry I should have know better than to try and discuss something with you instead of treating you with the contempt you deserve. You had your chance...Graham_Devon wrote: »I forgot you knew better than the UK Petroleum Industry Association.
My bad.
My bad.0 -
Diesel - Not enough capacity in the UK,large amounts are imported,hence the price difference.
Most UK refineries were built for Petrol production,60-70's.
Just aint no money in refining,over capacity in Europe lack of investment.
Coryton is closing down for good this month also.
read somewhere that we could just be importing refined fuel soon not crude.:eek: don't know how that helps with storage/"self [STRIKE]sufficiency[/STRIKE]reliance""If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »read somewhere that we could just be importing refined fuel soon not crude.:eek: don't know how that helps with storage/"self [STRIKE]sufficiency[/STRIKE]reliance"
We rely heavily on imports of diesel and jet fuel into the UK.
Sadly we're awash with Petroleum and export volumes into the East coast of America.
As for shipping finished product straight in yes its inevitable,there are large super refineries in the Far East being built and coming on-line.
All with the intention supplying the West.Official MR B fan club,dont go............................0 -
We rely heavily on imports of diesel and jet fuel into the UK.
Sadly we're awash with Petroleum and export volumes into the East coast of America.
As for shipping finished product straight in yes its inevitable,there are large super refineries in the Far East being built and coming on-line.
All with the intention supplying the West.
Appreciate historically we didn't do diesel for private cars but is this the reason for low refining capacity or is it fiendishly difficult.
I was under the impression it was a by product of petrol refining being a heavier distillate?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »I was under the impression it was a by product of petrol refining being a heavier distillate?
Around 20 gallons of petrol and 10 gallons of diesel out of a barrel of oil.
So naturally diesel is in shorter supply.0
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