Petrol and Diesel as dear as safron

tonyivb

I would be surprised if oil prices ever go back to sub $30 a barrel as there are so many factors that are keeping the price high...

1. The demand for oil/hydrocarbons continues to increase
2. Much of the readily accessible reserves have been used and production from them is declining
3. Limitations in refining capacity
4. Limitations in bulk transport capability
5. New oil reserves are more difficult to find (ie more expensive) and are in difficult or 'undesirable' places. These are often some distance away from where the oil will be used
6. The concern about the political situation in major oil producing nations (particularly Saudi Arabia)
7. Terrorism
8. Speculation, especially Hedge Funds

It is not just about getting more oil out of the ground. Points 3 & 4 above are playing a critical role as Saudi Arabia could dramatically increase production, but there are hardly any extra ships to transport it to thirsty markets (apparently, the worlds bulk carrier shipyards are booked up until after 2010). And if it could be transported, there is little extra capacity in refineries (US refineries worked at over 93% last week).

A few recent events have shown how much these factors can affect the prices....

Bad weather in the North Sea preventing oil from being collected from some platforms
The explosion at the BP refinery in Texas
Power cuts at a refinery in Venezuela

All of these pushed the price up!

These would seem like hiccups though if there were problems in Saudi Arabia. It is thought that it is only a matter of when, not if, that the Saudi regime will fall... when this happens you'd better head to the nearest station and tank up!

N9eav

IvanOpinion wrote:

Gosh that brings back memories ... I can just about remember trams ... my grandfather used to drive one.
Ivan

We seem to have come a long way from the highest pump prices ever!!!!

It matters not, I guess. We are a car culture, we will always have cars, and even if fuel was twice the price we would still have to use them. Public transport is ideal for large populated areas. When I go to London, I love using the tube, it's so easy. £3 a day and all the rides you want. BUt in rural areas, where the shops have closed, the bus routes gone and the public transport expensive... There really is no choice. Examples

TRAIN from My town to Penzance to visit the inlaws. (40 miles) £9.22. Child £6.42 Total for trip to grandmas, (2 adults and 4 children) £42 ish. Car = £12. Last train on a saturday leaves at 1800pm.

BUS to town (4 miles) £2.50p each way. Ha, you have got to be kidding.

TAXI to town £7 Sorry but rural car use is essential.

shrek101

I see what you mean N9eav. However in some areas there are alternatives besides public transport, which is why this could address some of your problems.

There alternatives like community transport, small mini buses (mainly unfortunately for the elderly at present) although even Royal Mail run do mini bus schemes. Also there is car sharing, and car clubs, where you rent a car for a short period of time which can be as little as an hour or two and cost a couple of quid.

We have a car club in a rural area near me at Whitby around the Goathland area (Heartbeat country) and that is in the middle of nowhere.

N9eav

There are lots of ideas and valid schemes to transport problems. Personally I need a car, but I don't like the way prices are going. It will affect everyone in the end. Buses, Taxis, car share, etc all use fuel, so even your public transport will go up. Fuel for fishing and farming! Fuel for haulage and trains, ferries, ships, air etc etc... There is no getting away from it. Even heating oil, gas and electric will rise, so at the end of the day we will all pay more. Spending less on luxury items..... recession looms.

Austin_Allegro

I agree that it is difficult to do without a car in rural areas, but that is because society has moulded itself around car ownership, ie most villages are now merely dormitories for the nearest large town.

Still...I survived in rural Wales for several years without a car, I walked to most places, used the train or took taxis. I think it's a question of exploring all the options to minimise car use, eg: having the most fuel efficient car possible, using a bicycle or moped for local trips, using taxis/public transport/car pooling whenever possible.

Murtle

I find it depends on the area - the place I grew up, it was 3 mile walk to the nearest bus stop. Once there there was a bus once every thirty minutes to town. I can't remember what the cost was to go to the closer down but it wasn't cheap, in excess of £1.50(and that was for a child....over 10 years ago). As a child going out for fun, that wasn't too bad.... but for a working person, fairly impractical - and when I had an accident and couldn't walk - darn expensive!!!! :eek:

ksrao

The americans and chinese are paying a fraction of our prices.I dont think in any other country the fuel price is so high.Wonder this could be the reason for not having insurance and road tax by some?

BargainHunterCat

I feel very strongly that we are carrying on using up limited fuel resources like there's no tomorrow although we know we're going to run out of fossil fuels soon. I don't see the government putting any serious measures in place ready for when we run out either which is a worry so here are my best tips.
If you drive diesel car, when prices get to high (or when we run out!), try filling it up with vegetable oil diluted with a little white spirit (I'll look up the recipe & post it later) which works out a lot cheaper. The only downside is that you are supposed to declare it to Customs & Excise who will then tax you on it.
Some of you might remember Jeremy Clarkson succesfully testing veg oil in a diesel on Top Gear a couple of years ago.
If you don't have time for that try to make sure you get an economical vehicle. My 1.8 turbo diesel Peugeot 205 does 60 mpg and the non-turbo version can apparently do about 70! Don't settle for 35mpg that's rubbish!
I live in Bournemouth & the cheapest diesel I have found is currently 85.9p/l at Windreen service station in Corfe Mullen. If you drive a little further to it's sister station on the A31 you can get your diesel for the same price and get driver reward vouchers (5 vouchers= £1 off your next tank of fuel). Don't go to your local petrol station because it's nearest, you may find it's worth driving a bit further to make a saving and Supermarkets are definitely not always cheapest!

oscardog

Whatever our petrol prices are it is 80% tax.

Need any more clues about where to point the blame?

N9eav

Surprised this is still going.... It seems that prices are coming down a few pence. Price of crude is coming down too, so we should see a fall later in the year when those supplies reach the pumps.
It's still tax though. Any party will use it to gain revenue.