MSE News: Further petrol price cuts at Asda bring RAC's predicted £1 a litre closer

Former_MSE_Paloma

"Asda will cut petrol prices by 2p/litre from tomorrow, bringing prices to a five year low at its forecourts ..."

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Further petrol price cuts at Asda bring RAC's predicted £1 a litre closer




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Pincher

http://www.telegraph.co.uk/finance/newsbysector/energy/11308952/Opec-Oil-plummets-after-Saudis-says-20-crude-is-possible.html




With a beard, these OPEC guys could dress up as Santa Klaus.
Cheap oil: the perfect Christmas present.

aldredd

It may seem like that - and I'm by know means complaining - but not for one moment should anyone think Opec are being 'nice' by maintaining output levels (which is what is keeping prices low).

Their hope is that it'll scare off investments in other sources of oil and gas (eg, Shale in the US), which would have a bigger, longer term impact on the Opec countries than seeing prices drop to where they are now. They're playing the long game for sure.

bod1467

Oh look! Another supermarket advert.

reddwarf2002

aldredd wrote: »

It may seem like that - and I'm by know means complaining - but not for one moment should anyone think Opec are being 'nice' by maintaining output levels (which is what is keeping prices low).

Their hope is that it'll scare off investments in other sources of oil and gas (eg, Shale in the US), which would have a bigger, longer term impact on the Opec countries than seeing prices drop to where they are now. They're playing the long game for sure.

Absolutely agree. OPEC are a bunch of blood sucking vermins.

gilbert_and_sullivan

I thought the Saudi's were playing ball with the EU/American plan to teach Putin a lesson (yeah right, good luck with that one, Russia aint Libya/Iraq) for not bending over and accept another EU/NATO in Ukraine.

Must ask the MSM what to think.

Paul_Herring

At £1.00 a litre:

16.67p is VAT
58p is excise duty.
25.33p is the actual petrol.

Anyone got any opinions on how else the price could be lowered?

OddballJamie

Paul_Herring wrote: »

At £1.00 a litre:

16.67p is VAT
58p is excise duty.
25.33p is the actual petrol.

Anyone got any opinions on how else the price could be lowered?

You forgot the fuel station's profit margin.

bod1467

OddballJamie wrote: »

You forgot the fuel station's profit margin.

That'll be part of the 25.33p.

fivetide

bod1467 wrote: »

That'll be part of the 25.33p.

Don't forget that price is set by the company that refined it... so in a lot of cases, the owner of the station. That's where the oil companies make their money.


Just a shame that prices of oil have dropped by a half but the price of petrol hasn't.

20aday

I work in an independent petrol station behind the counter (so I've no idea about margins etc) but it's great to see prices heading back towards £1 per litre.

A while ago people scoffed at me when I said I believed prices would fall from their record highs back towards the £1 mark...