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MSE News: Petrol market 'working well', despite high prices
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the main reason for Diesel to be more expensive than petrol is the wholesale cost.
Petrol and diesel are sold by weight in the markets but due to their differing densities you get significantly less diesel per tonne than petrol.0 -
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We knew that before... so why was there an 'investigation'.
All it highlighted was what we already knew lol
THAT'S my point!
because there is still an element of the price of petrol that does not go to the government as tax - therefore that element could still be looked at to see if there was anti competitive practices going on.0 -
because there is still an element of the price of petrol that does not go to the government as tax - therefore that element could still be looked at to see if there was anti competitive practices going on.
I'm hardly 'pro oil companies' but what they do for the price in my opinion is quite good. Pulling stuff out the ground, refining it and shipping it all around the world for the equiv of about 40 pence per litre?0 -
I'm hardly 'pro oil companies' but what they do for the price in my opinion is quite good. Pulling stuff out the ground, refining it and shipping it all around the world for the equiv of about 40 pence per litre?
Yep it's a tough job but someone's got to do it...
....and of course there's no money in it for the Oil Companies or their shareholders... they must be practically giving it away..... not!!!
BP Reports Strong Third Quarter Results, Raises Dividend
Underlying 3Q 2012 replacement cost profit $5.2 billion; a 40 per cent increase on previous quarter.
Increases quarterly dividend by 12.5 per cent, to 9c a share, payable in 4Q 2012.If the ball had gone in the net it would have been a goal.If my Auntie had been a man she'd have been my Uncle.0 -
See below the response I got back from the OFT regards heating oil price fixing it doesn't surprise me that they come out with similar findings with fuel prices. This response leads me to believe that they are NOT an office for fair trading, needless to say we as taxpayers can easily see that profiteering is taking place but they are conveniently blind to the facts, maybe they are dining well with oil industry support!!
My colleague Charles Wallace has passed to me your email regarding recent prices for heating oil.
You may be aware that in October 2011 the OFT published a report that looked at competitive conditions in the market for heating oil. A copy can be found here: (link to OFT Report 2011)
We dealt with the issue that you raise in that report. Prices for heating oil in winter are driven not only by crude prices but also by increasing demand. Prices and profits can be substantially higher in the winter period (relative to the price of crude) than they are in the summer.
Much the same thing happens with airline tickets at Christmas, beach holidays in August, train tickets in the rush hour and London hotel prices during the Olympics. Indeed any competitive market where at different times there are substantial differences in the balance of supply and demand are likely to experience a variation in the difference between the retail price and the costs of supply.
We advise stocking up early and avoiding buying in the period around Christmas (which is often particularly severely affected) but we also recognise that this may not be a readily available option for people with small heating oil tanks.
Yours sincerely,
James Macbeth
My Response which needless to say has gone unanswered!
Dear Mr Macbeth
Yes I had already seen the report attached which at best can be described as very poor and not what one would expect from an office for fair trading!
This is a heating commodity just like gas and electricity and the comments you have made below are unbelievable, the idea that you can compare this with airline tickets and hotels is preposterous may I remind you that old people require there heating turned on in cold conditions and do not have a choice like people who wish to fly or visit hotels etc. Your comments regarding when to fill up with oil are already well known by the consumer, however, you should be aware that most domestic tanks are 2500 ltrs or below these days and given that the temperatures have been below average for most of the last 3 months many users will have used in excess of 1500ltrs already, the profiteering on this scale at the expense of the oil consumer is tantamount to corruption.
Please could you let me know what would happen if the utility companies acted like you suggest below and increased prices more when the temperature dropped or it was near a holiday period even though the base price was the same, there would be a public and press outcry and it would not be allowed.
I will be forwarding a copy of your reply and this e mail to my MP for him to find out why we as tax payers are paying for departments like the OFT when clearly they are toothless, also for him to raise questions within parliament about the blatant lack of control with the heating oil market.
I trust you will be nice and warm over the next few weeks.
Where do they get there guidelines of fair trading from one wonders!0 -
old people dying of cold is not the concern of the OFT. like others you seem to be ignorant of what the OFTs guidelines are. and FYI they come from the government.
they have nothing to do with regulating prices.
maybe you should ask your MP to give them the power? i think you will find your MP will tell you to get lost as the Government tries not to interfere with free trade.0 -
Is it economical though to travel a further distance to save 1p/l? Add that up over a tank of fuel and the 10 minutes there/back would be wiped out.
That's 10 metres... which is an overstatement as its more like 4 metres. Hence 60p on a 60l fill for a journey of 4 metres extra or perhaps 50m to use the roundabout instead of crossing the road to the OTHER SHELL selling identical fuel 1p/l cheaper!0 -
Yep it's a tough job but someone's got to do it...
....and of course there's no money in it for the Oil Companies or their shareholders... they must be practically giving it away..... not!!!
BP Reports Strong Third Quarter Results, Raises Dividend
Underlying 3Q 2012 replacement cost profit $5.2 billion; a 40 per cent increase on previous quarter.
Increases quarterly dividend by 12.5 per cent, to 9c a share, payable in 4Q 2012.
If you actually bother to read the annual reports you will see non of the oil companies make much in downstream.
They make many times more in exploration and production and
trading.In 2011 pre-tax BP made £39,817,000,000
they paid £12,737,000,000 in TAX alone.
From £39,817,000,000 -
£30,500,000,000 Exploration and Production
= £9,317,000,000 (For everything else including pump sales) before tax
Of this £5,411,000,000 is in refining and marketing where marketing includes petrol stations.... the annual report doesn't break down further but refinery is usually much bigger than marketing.
Lets say half or round it to £2,500,000,000... this is being extremely optimistic in terms of pump sales.... this is 1/5th of what they pay in tax.... in BP terms its an almost insignificant part of the £39,817,000,000 TOTAL PRE TAX....
Yet it employs more than the rest of BP together by a large amount.
Out of 83,400 employees 51,000 are in refinery and marketing....
so 61% of the staff are making 12% of the revenue.
Reading the annual report shows just how insignificant pump sales are.... to BP, Shell, Exxon or TOTAL.....
Do oil companies make HUGE amounts of money?
Absolutely.....
Do they get it from selling petrol at pumps....
Absolutely not.....0
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