Gear Head

iTrader: (2)

But will we ever see a reduction at the pumps?

BBC NEWS | Business | Market Data | Commodities | Brent Crude Oil

I can't see how they are allowed to get away with it. Prices come down so they cut production.

scoobynutta555

It's their oil not ours. They're exercising their right to get the returns they want to for their product, just like every other commodity.

PeteBrant

@ $100 per barrel the price per litre of unleaded should be around 106pence.

Gear Head

iTrader: (2)

111.9 down south.

chocolate_o_brian

iTrader: (22)

How do you get that figure Pete? Genuine question too

Oil peaked at around $140-143 in July didn't it?

So over $40 coming off looks around 30% if I'm doing this right. So if unleaded (normal) was about £1.20 a litre back in July at the peak, shouldn't it be under a pound in theoretics now. (30% of £1.20 is approx. 36p)

If I've buggered the maths up, I apologize on that one

scoobynutta555

Not forgetting of course the £'s recent collapse against the $ making imported oil more expensive for us.

PeteBrant

At £147 a barrel we had prices of £1.25 or thereabouts.

Breakdown of costs

"Petrol" 50p
Fuel duty 50.35p
Forecourt costs 3p
Forecourt profit 2p
Total = 105.35
+VAT @ 17.5%
=£1.24 per litre (close enough)

And todays price

"petrol" reduced by 30% = Petrol cost of 35p
Fuel Duty=50.35
forecourt costs = 3p
forecourt profit=2p
Total=90.35
+VAT@17.5%
=£1.06 per litre.



In other words, the oil cost has dropped - nothing else has changed.

Kieran_Burns

iTrader: (1)

Don't forget how much of the price of fuel is tax.... Fuel Tax - PetrolPrices.com

chocolate_o_brian

iTrader: (22)

Thats where I made the mathematical error... I was under the assumption that fuel duty etc, was a percentage not a fixed sum

Thanks for pointing that out - I AM A P L U M

Gear Head

iTrader: (2)

Join the club!

FlightMan

It's all Ferrari's fault.

Discuss.

boxst

I have no idea if oil is really purchased in dollars, if so your math is out.

As

oil at $147 = £74 ish (£1 = $2)

oil at $100 = £58 ish (£1 = $1.7)

So a 20% reduction.

Steve

MattN

Fuel at my local garages has come down just 6%.

The most annoying thing is oil dropped in price quite quickly and the savings were passed on, since the initial drop though not much has changed. I.e. I was paying the same when the oil was $115 a barrel as I am now at <$100.

darts_aint_sport

I wonder, all other things being equal, when the pound strengthens against the dollar, does the price of petrol at the pumps decrease?

Gear Head

iTrader: (2)

Absolutley pathetic. How old are you? Do you get your jollies from picking on people, on a web forum who you will never meet? What a big man you are. Go back to playing your xbox.

TelBoy

Yes it does (or should do). Oil is traded in $, not £.

darts_aint_sport

Yes I realise it should do, but I just wonder if it actually does!

TelBoy

Oh, that's easy. No!!

Klaatu

We will not see petrol much below the recent highs, regardless of exchange rate and oil price.

Oil is $30, at least, cheaper now than it was at the recent peak, but petrol is still at $1.69 p/l (Well it is the w/e here in Australia, prices are "high"). I am rather fortunate not to have to rely on my car for much, a run to the beer shop maybe.

PeteBrant

Of course the £147 per barrel should have been $147, no need for a conversion - was a simple typo

FlightMan

Why do you think I ended my post with a If you're struggling to work it out, it was a light hearted post.

42.
No, a perusal of my posting history will confirm that.
Yes, I am. Well the wife thinks so anyway.
I don't own one. They're for children and peopel who haven't grown up.

Bye.

boxst

Yes, a typo, but you didn't factor in exchange rates?

Although the news today about the financial companies in America will probably push the pound up a little bit against the dollar.

Steve

PeteBrant

Ah ok, sorry, I thought you mean the fact I had written "£147".

I'm not sure that the exchange rate is that relevant though, is it? - Sure it can be (and is) used as an excuse when the price goes up. But I don't remember the price coming down due to the exchange rate.

Most businesses factor in a buffer for exchange rate fluctuation, do petrol companies?

Leslie

There used to be a time when people used to sell items at a fair profit to make their living. Now it all seems to hinge on market forces which is fine for the seller but not very good for those buyers who are subject to the cartels and the monopolies which take advantage of the situation and rip us all off for massive profits.

Is it morally right I wonder to soak us for all the cash they can get when they are in the position of being able to charge what they like?

Like all natural resources, the oil belongs to the people, not those who extract it.

Les

Paul3446

Brent Crude is now at $91 a barrel, oil prices are plummeting, petrol still 109.9 at Tesco yesterday!

TelBoy

Just shows you what can happen when the speculators at the big investment banks and hedge funds aren't allowed to play...

scoobynutta555

I don't know when this golden era was.There's always been spivs and profiteerers and there always will be. And no natural resource, including oil, belongs to anyone at all if you want to be pedantic.

AndyC_772

iTrader: (2)

I take back what I said about the price at the pumps last week - they are taking the p*ss now. I filled up with BP Ultimate Diesel yesterday at £1.31 / litre

Lee247

Just filled up today, Esso Supreme. £1.20.9 per litre

Paul3446

Oil is now down to $88 a barrel.

If petrol prices don't move soon then questions should be asked.