Petrol / Diesel price increases

Toby2358

I'm curious around the speed of the increases in petrol / diesel just now.  Previously, companies were always slow to reduce the prices in the forecourts as their excuse was that they'd bought the fuel in bulk and so needed to keep prices high at the forecourts until that higher priced supply had gone......and they they could reduce the price once the cheaper fuel they'd bought started to filter through.
However, prices now seem to be increasing daily - sometime twice a day.  Assuming companies aren't bulk buying just now - and they buy their fuel daily too?   If not - why the constant increase on a daily basis??

Herzlos

Welcome to capitalism. They can so they will. What are we going to do, walk?

dd95

paid 1.98 a litre today. Disgusting

diystarter7

I was thinking about the price for oil per barrel and I recall it being possibly higher or just as high years ago so I looked up 70 years of prices. I was right, the price per barrel has been at/close to thes prices in 2010, earlier and later see link - so why is petrol/diesel-only now approaching 200p per lt?   Surely this must be someone is making billions but who?

https://www.macrotrends.net/1369/crude-oil-price-history-chart

Have I misunderstood something here?

SuperExcelMan

diystarter7 said:

I was thinking about the price for oil per barrel and I recall it being possibly higher or just as high years ago so I looked up 70 years of prices. I was right, the price per barrel has been at/close to thes prices in 2010, earlier and later see link - so why is petrol/diesel-only now approaching 200p per lt?   Surely this must be someone is making billions but who?

https://www.macrotrends.net/1369/crude-oil-price-history-chart

Have I misunderstood something here?

Are you in the US buying in dollars, or the UK buying in pounds? If the later, you need to convert the prices to GBP.

At one point in 2010, the exchange rate was around the $1.50 to $1.60 per £1, now it is $1.20 - it makes a huge difference.

I’m not saying someone isn’t profiting an awful lot on this somewhere, but you need to compare apples with apples

Car_54

SuperExcelMan said:

diystarter7 said:

I was thinking about the price for oil per barrel and I recall it being possibly higher or just as high years ago so I looked up 70 years of prices. I was right, the price per barrel has been at/close to thes prices in 2010, earlier and later see link - so why is petrol/diesel-only now approaching 200p per lt?   Surely this must be someone is making billions but who?

https://www.macrotrends.net/1369/crude-oil-price-history-chart

Have I misunderstood something here?

Are you in the US buying in dollars, or the UK buying in pounds? If the later, you need to convert the prices to GBP.

At one point in 2010, the exchange rate was around the $1.50 to $1.60 per £1, now it is $1.20 - it makes a huge difference.

I’m not saying someone isn’t profiting an awful lot on this somewhere, but you need to compare apples with apples

Also, oil isn't the only cost faced by the suppliers. Everything else they have to pay has gone up significantly since 2010 - labour, transport, energy, etc.

Bigphil1474

I read that the £ to $ rate, and the lack of refining capacity is affecting the price of petrol, irrespective of the cost of oil. I don't think it is really the retailers fault although my nearest station (Shell) was selling unleaded at £1.93 on Tuesday, whereas the Sainsbury down the road was £1.83. 

sheramber

https://www.rac.co.uk/drive/advice/fuel-watch/

What makes up the cost of a litre of unleaded petrol?

Table with 3 columns and 9 rows. Currently displaying rows 1 to 9.

	Pence per litre	% of total cost
Wholesale petrol (90%)	83.42	45%
Bio content (up to 10%) - E10	12.65	7%
Delivery & oil company	1.70	1%
Retailer margin	3.47	2%
Fuel duty	52.95	29%
VAT @ 20%	30.84	17%
Retail price	185.04
Total tax	83.79
Tax as % of average retail price	45%

diystarter7

Thanks all. I was referring to whatever rate was in the link I posted.
You would have noted as per mu post that oil PPB was around the 140 mark 2010 and several times and many years before that and I'm guess petrol/diesel was 20-25p a litre.

It is profiteering no matter how much prices have increased. A few years ago I think around 4 years oil price collapsed and along with covid more recently, did we see fuel at 40/50 per litre.

It is profiteering and hitting the hardest the lowest-paid workers and carers that have to work/care and public transport is not great there.

Thanks, I heard a few days ago re tax at 45% but some of the blame goes to the companies in my opinion

Car_54

diystarter7 said:

Thanks all. I was referring to whatever rate was in the link I posted.
You would have noted as per mu post that oil PPB was around the 140 mark 2010 and several times and many years before that and I'm guess petrol/diesel was 20-25p a litre.

It is profiteering no matter how much prices have increased. A few years ago I think around 4 years oil price collapsed and along with covid more recently, did we see fuel at 40/50 per litre.

It is profiteering and hitting the hardest the lowest-paid workers and carers that have to work/care and public transport is not great there.

Thanks, I heard a few days ago re tax at 45% but some of the blame goes to the companies in my opinion

You'll see from the previous post that the oil company is making 1.7p per litre, less the cost of delivery, and the retailer 3.5p.
Which of them is profiteering?

sheramber

diystarter7 said:

Thanks all. I was referring to whatever rate was in the link I posted.
You would have noted as per mu post that oil PPB was around the 140 mark 2010 and several times and many years before that and I'm guess petrol/diesel was 20-25p a litre.

It is profiteering no matter how much prices have increased. A few years ago I think around 4 years oil price collapsed and along with covid more recently, did we see fuel at 40/50 per litre.

It is profiteering and hitting the hardest the lowest-paid workers and carers that have to work/care and public transport is not great there.

Thanks, I heard a few days ago re tax at 45% but some of the blame goes to the companies in my opinion

Like everything else  cost depends on supply and demand.

That is why the price went down during covid as people were not travelling as much.

Production costs for the oil companies will be much higher now than they were in 2010.

More demand for fuel now than 2010. 

My grocery bill is more than it was 2010. 

My utility bills are more than they were in 2010.

A visit to the cinema is dearer now than in 2010.

House prices are more than they were in 2010.

Can you name something that is the same price as it was in 2010?

https://www.petrolprices.com/the-price-of-fuel/