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Fuel price rises

in Motoring
28 replies 1K views
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Replies

  • Car_54Car_54 Forumite
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    Car_54 said:
    Probably, retailers overcharging drivers by 2p-a-litre 
    Why would you call it overcharging?  The filling station needs to make money and if sales are down ~50% then they will need to charge more to break even and make their margin.  Just basic economics.

    Plus the price of oil is up just under $10 in the same period.
    Don't basic economics say that if demand is down prices go down, to stimulate sales?
    You miss the basic point, that if you sell below the price that the site breaks even then the business will cease to exist.
    The business would indeed cease to exist if fuel was the only thing it sold. But there are few like that nowadays.
  • 203846930203846930 Forumite
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    ***Please Note***

    I intend buying diesel tomorrow (Thursday 25 Feb) so watch out for the price dropping soon afterwards.
    It is now just 3 weeks short of a full year since I last filled my tank and the price has now crept up a few pence higher than it was back then.
  • daveyjpdaveyjp Forumite
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    Could be a good time to refill.  Budget next week and there are coffers to fill.  Fuel duty could be a target, double bubble for the Chancellor as it also means more VAT.
  • Flight3287462Flight3287462 Forumite
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    Oil price (Brent) has jumped from $51 on 1st January to $67 today.   Which after taking into account currency is >25% rise in sterling terms to £47.50.  Petrol prices are going to rise further "ceteris paribus".

  • AdrianCAdrianC Forumite
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    Oil price is a relatively small part of pump fuel prices.

    £1.15 at the pump is 19p VAT and 59p duty = 37p for the fuel itself.
    That includes the filling station's margin, delivery from local depot to the station, brand's margin, delivery from refinery to depot, refining, refiner's margin... oh, yes. And the oil.

    A barrel is 159 litres. $67/barrel is 42c/litre, 30p at today's exchange rate. $51/barrel is 32c or 23p. But, of course, one litre of crude doesn't convert nice and smoothly into one litre of petrol or diesel.
  • There's been 5 increases this month, locally, for me. 
    Sainsbury went from 116.9p/litre to 118.9p/litre since I filled up a few days ago.

  • RobM99RobM99 Forumite
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    Oil companies are certainly not making money on aviation fuel, that's for sure.
    Petra Viva. A rocking good band!
  • MX5huggyMX5huggy Forumite
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    It’s crazy last night I paid less than 3p per kWh tonight I’m looking at 6 to 7p
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