Petrol now 99.7p a litre

Graham_Devon

Hurrah!

Two petrol stations have now reduced petrol to 99.7p a litre. They are Harvest service stations in Birmingham.

Motorists can finally fill up their tanks for less than £1 a litre – as long as they’re prepared to drive to the Midlands.

The bargain petrol went on sale at the Harvest Energy service station in Birmingham for 99.7p.

The motoring organisation RAC said the price was the lowest it had seen in the UK, and marked the first time since 2009 that filling up had been so cheap.
RAC fuel spokesman Simon Williams said: “We have been expecting to see the price of petrol come down to £1 per litre, or lower, for some time thanks to the decline in global oil price and retailers willing to make cuts at the pump on an almost weekly basis.

“It is usually the supermarkets that lead the way on price cuts this deep, so perhaps this will encourage them to make a similar move; but our feeling is it may be a while yet before others follow suit and go below £1 per litre, although it may well happen over the next few weeks.”

Just spreading some positive cheer.

Should certainly help people out.

Just shows how things change. A year ago, who'd have suggested that just after Christmas 2014 petrol would hit 99p a litre!?

We simply never know what's around the corner.

Generali

According to this mob:

http://www.petrolprices.com/the-price-of-fuel.html

That's a fall of about 33p/litre in the past year. Given that about 3,500,000,000 litres of petrol and diesel are sold each year, that's an injection of about £1,150,000,000 into the pockets of consumers and businesses, a colossal amount of money. Plenty of that money will find itself into the pockets of the working poor, the group that has been harder than any other by the GFC having paid for but not taken part in bailouts etc.

wotsthat

Graham_Devon wrote: »

Just shows how things change. A year ago, who'd have suggested that just after Christmas 2014 petrol would hit 99p a litre!?

We simply never know what's around the corner.

The more sensible maybe wouldn't have suggested a petrol price of 99p but wouldn't have discounted the possibility either.

It's only taken a decade but maybe you're becoming more open minded and less entrenched in certainty.

Welcome.

Graham_Devon

wotsthat wrote: »

The more sensible maybe wouldn't have suggested a petrol price of 99p but wouldn't have discounted the possibility either.

It's only taken a decade but maybe you're becoming more open minded and less entrenched in certainty.

Welcome.

Is there anything you can't create an argument about!?

shortchanged_2

Good news for the hard up consumers, not so good for the government tax coffers.

stator

I'm willing to bet it was a publicity stunt by the petrol station to lower their price to 99p. I won't how long it will last

Graham_Devon

shortchanged wrote: »

Good news for the hard up consumers, not so good for the government tax coffers.

They aren't losing that much, around 4p a litre.

Duty and the VAT on that duty is static. They only lose VAT on the reduced product price, hence around 4p a litre.

Bigger tax falls are to come from the intervention into north sea oil companies. They are due to reduce taxes "considerably" on the companies apparently. No numbers as yet, but the oil companies are looking for a 50% reduction in taxes (60% down to 30%).

Not sure how we are going to make up that loss in revenue.

Generali

Graham_Devon wrote: »

They aren't losing that much, around 4p a litre.

Duty and the VAT on that duty is static. They only lose VAT on the reduced product price, hence around 4p a litre.

Bigger tax falls are to come from the intervention into north sea oil companies. They are due to reduce taxes "considerably" on the companies apparently. No numbers as yet, but the oil companies are looking for a 50% reduction in taxes (60% down to 30%).

Not sure how we are going to make up that loss in revenue.

Plenty of that billion quid saving will be spent on employing people and buying stuff. That means tax.

This fall in the oil price is a huge boost to the economies of Europe including the UK. Don't underestimate what a big thing this is, assuming it lasts of course.

Graham_Devon

stator wrote: »

I'm willing to bet it was a publicity stunt by the petrol station to lower their price to 99p. I won't how long it will last

They have stated it's a PR issue. They are making a very slight profit, but believe in a weeks time prices will have fallen further so the price should stay the same without it hitting them too hard.

They are already seeing an increase in customers this morning, so it's a "cheap" PR campaign really.

One retailer close to them has already reacted and dropped petrol by 3p a litre. no doubt we'll see the supermarkets reducing theirs in the next 24-48 hours.

mayonnaise

Generali wrote: »

that's an injection of about £1,150,000,000 into the pockets of consumers and businesses, a colossal amount of money.

Could be a massive injection into the housing market also.
Good news.

shortchanged_2

mayonnaise wrote: »

Could be a massive injection into the housing market also.
Good news.

Nah, the housing market is running out of steam now. Only decent wage rises can drive house prices from here.