99p a litre!

mwpt

wotsthat wrote: »

Much of agriculture is geared to producing feed for animals. It would be more land efficient and would use dramatically less resources to eat less meat and other animal based products.

There's a reasonably interesting documentary (Cowspiracy) produced by Leonardo Dicaprio - I watched it on Netflix.

https://www.youtube.com/watch?v=nV04zyfLyN4

That's the first time I've posted a youtube link - it'll be silver and fiat currencies next.

Heh. Thanks, added to my notes for watching. Reminds me, I haven't seen anything on the artificial meat side for a while. Last I heard they made a hamburger costing some absurd figure. But that will be a big breakthrough when costs beat agriculture. Hmmm, in fact, start shorting agri stocks at some point?

mystic_trev

mwpt wrote: »

Cows fart too much?

Don't they have two stomachs? A bit like Fergus Wilson

antrobus

michaels wrote: »

And given agriculture is 30% of emissions I think we will all have to be vegans too by 2020....

Globally it appears to be 24%,

http://www3.epa.gov/climatechange/ghgemissions/global.html

but only 9% in the UK

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/407432/20150203_2013_Final_Emissions_statistics.pdf

PasturesNew

Cheapest within 5 miles of me is still £1.05. 10 miles is £1.03.

And, of course, 5 miles/10 miles is straight lines, not routes ... so it'd take one heck of a round trip to find fuel as cheap as 99p.

It's £1.02 at the Asda 15 miles from me.

antrobus

michaels wrote: »

...It is certainly bad news for those who believe that carbon emissions should be cut, short term people will use more, long term there is much less incentive to develop alternatives.....

The price elasticity of demand for petrol is quite low, so I doubt that in itself will make much difference.

The impact of oil at $40 a barrel on more long term investment decisions would likely be more significant.

michaels

PasturesNew wrote: »

Cheapest within 5 miles of me is still £1.05. 10 miles is £1.03.

And, of course, 5 miles/10 miles is straight lines, not routes ... so it'd take one heck of a round trip to find fuel as cheap as 99p.

It's £1.02 at the Asda 15 miles from me.

Asda do National pricing, they will be 99.7 tomorrow.

molerat

michaels wrote: »

Asda do National pricing, they will be 99.7 tomorrow.

99.7p here today.

Thrugelmir

michaels wrote: »

It is certainly bad news for those who believe that carbon emissions should be cut, short term people will use more, long term there is much less incentive to develop alternatives.

VW may have dealt the death knell to diesel engines though.

With cheaper prices products can be taxed more highly.

Kendall80

Oil dropped another 4-5% yesterday. I wonder if we'll see 90p a litre at the pumps. It'll be dimishing decreases now though with tax likely making up a greater proportion.

Graham_Devon

Kendall80 wrote: »

Oil dropped another 4-5% yesterday. I wonder if we'll see 90p a litre at the pumps. It'll be dimishing decreases now though with tax likely making up a greater proportion.

It makes up around 75% of each litre of unleaded.

Heres a cost breakdown on a litre at 99.9p

VAT 16.65p
Duty 57.95p
Fuel Cost 20.3p

Total Tax 74.6p


The lower the petrol price goes, the greater the tax take as a percentage. This is why all the talk of Osbourne looking to increase fuel tax is a non starter.

If the price at the pump reached 90p a litre, the actual cost of the fuel would be 12p (tax would be 81%). And I'm not entirely sure how retailers could survive that.

Reckon the lowest we could see is 95p a litre as I simply don't know how retailers could make it work otherwise. I could well be wrong though.

At 76p a litre, the fuel would be completely free, with the consumer only paying the retailer around 5p for the use of the pumps and transportation of the fuel.