Fuel price rises

Car_54

Hunyani_Flight_825 said:

Car_54 said:

Hunyani_Flight_825 said:

TomokoAdhami 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.

203846930

***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.

daveyjp

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.

Flight3287462

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".

AdrianC

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.

stewartwilliams

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.

RobM99

Oil companies are certainly not making money on aviation fuel, that's for sure.

MX5huggy

It’s crazy last night I paid less than 3p per kWh tonight I’m looking at 6 to 7p