f1_fan

iTrader: (9)

Can anyone really explain to me why petrol prices have remained so high in the UK in the last few months?

I am reasonably intelligent yet cannot understand why the price remains high.

I know these facts to be true:

1) Record petrol price in the UK was in early May2011
2) Petrol today is only 1p a litre cheaper than that record price and has been for nearly 2 months
3) Oil price is $20 - $20 a barrel cheaper now than in May
4) Exchange rate between the pound and the dollar is roughly the same as in May (Petrol Retailers Assoication said the high price remains because of exchange rate fluctuations between the dollar and the pound - clearly a lie).
5) Petrol price has come down elsewhere in Europe despite the Euro exchange rate worsening slightly against the dollar.

So what gives? What am I missing? Serious question btw.

Gear Head

iTrader: (2)

I have been thinking the same as I usually check oil/currency prices daily. All I can think is that it happens because the retailers can get away with it.

Wait for the dive in prices which is now looming due to a weakening global demand - i.e. China!

EddScott

Everytime I fill my old jeep cherokee it doubles in value

Cammy5106

iTrader: (3)

It's because they can get away with it and no one does anything about it that's why it's still high we all just pay no matter how high it goes simple as that

ReallyReallyGoodMeat

The pound has tanked recently, especially the last week.

f1_fan

iTrader: (9)

This is what always gets written on these threads and it's always crap. The exchange rate in May was 1.62 and last week it was 1.62, this week it is 1.5t, but that is not really tanking is it and certainly does not offset the $30 a barrel diffeence in oil price.

GlesgaKiss

Probably to cover the cost of petrol already purchased at a higher price? Other than that, it's because they can. People tend not to be as fussy about prices when they are falling, which they are (slowly), so maybe the effects of competition aren't felt so much through falling prices, enabling all retailers to keep their prices higher than they would be if people were more selective. It seems an obvious thing to do from a business owner's perspective to see how much extra they can keep charging above costs when that cost price is falling.

f1_fan

iTrader: (9)

Garage down the road here

1.35 in May
1.35 yesterday.

Falling?

GlesgaKiss

It's definitely a couple of pence cheaper here.

f1_fan

iTrader: (9)

I need to move then

TelBoy

Because they can, as a few people have said.

They could charge £5 per litre and i'd bet they'd still make more money, even with the reduction in demand that would bring. People simply cannot live without petrol yet.

Only thing that will change it is another proper recession and/or the gradual transition to alternative energy sources.

ReallyReallyGoodMeat

You only need to watch Naked Gun 2.5 to know what lengths the traditional energy industry will go to, to protect their market.

GlesgaKiss

Technology will save us. Alternative sources as they stand now are pants, hence they're alternative rather than primary. But hopefully in the not-too-distant future they'll be much more efficient and actually much cheaper than the fuel we use today.

TelBoy

Agree. I keep being told that solar power for domestic use is on the verge of revolutionising our energy usage. Bring it on, i say. "Bit ugly on the roof"? Bothered.

Ant

Once renewable does take off big time, it'll be shortly followed up by a mickey mouse tax on it. Inevitable really

The Dogs B******s

As above

Chip

Do you only put a tenners worth in it then

Funkii Munkii

Derv is not falling in the SE, £1.39.9 in May £1.39.9 now, it has stayed between 137.9 and 140.9 during this time, they drop it by a penny for a couple of weeks to make you think its coming down then chuck 2p on for a couple of weeks, then drop it by a penny again.

CREWJ

Think of it from a business point of view. Why would they lower it?

They will use any excuse to rise the prices and just never lower it. Pretty good business management I say.

hodgy0_2

keeps the roads clearer

wrxcook

Rant rant rant, there high and we just need to deal with it the tax man takes the lions share, the retailers the smallest, as for the oil companies to drill it from the ground, transport it, refine it, and then to transport it to the petrol stations for about 60p a litre isn't to bad

Ant

Telboy, we need a grammar lesson

Nothing we can do about the prices apart from rioting and to be honest I can't be arsed to riot.

pslewis

The supermarkets have effectively dropped their prices by 10p a Litre .... but only if you spend £x in their stores.

If they, instead, knocked 10p a litre off the forecourt price then that would see the independants having to take less in profits and match the price.

Simple market economics.

Spec'c'57

iTrader: (1)

You can get 15p OFF per litre @ tesco.

TelBoy

There high and they're's nothing we can doo about it, to bad for the motorist's i reckon

f1_fan

iTrader: (9)

Yes higher fuel prices mean less people on the roads especially in the evenings, at weekends and bank holidays and hence they don't visit places therefore don't go to attractions, don't eat out, don't shop for those little luxuries that they may buy on the spur of the moment or for anything else really and hence the whole eceonomy slows more and more. Top news!

PaulC72

Its because they simply can charge what they like, the government won't react as they cream off the majority and means they can spend more on moats and fishponds.

FlightMan

This.

Anyone who has the ability to affect the price profits from it. The higher it is, the greater the profit.

Welcome to Treasure Island folks.

stevebt

iTrader: (8)

If they keep it high it helps add billions to the goverments piggy bank and if we are paying for it why should they worry.

f1_fan

iTrader: (9)

Yes, but it is very shortsighted if it is damaging the rest of the economy..... ah, short sighted fcukwit politicians.... whatever next