Gloomy news on the petrol front!

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grober

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Courtesy of Reuters.
Drivers paying more for Petrol due to US demand.
Motorists around the world have been paying more to fill up their tanks in the past month, as the start of the U.S. driving season soaks up supply, and fuel prices are expected to keep rising. The average U.S. retail price for gasoline hit $3.22 (1.63 pounds) a gallon last week, the highest since March 1981 during the Iran/Iraq war. With U.S. motorists taking to the roads at the start of the holiday season this week, strong gasoline demand will continue to drive up prices around the world possibly until well into August? In the UK, pump prices are less than two pence a litre off record highs of 98.5 pence per litre reached last summer. In Rotterdam, premium unleaded gasoline barges surged by 75 percent between January and May to trade at an $800 a tonne peak on May 18. Despite a sharp price fall in recent days, with Rotterdam barges trading at $746 a tonne on Thursday, traders and analysts say the upward price trend is likely to be resumed the reason . Quote:- "It's the driving season and with the inability of the United States, in refining output, to actually meet its demand, Gasoline stocks are pretty low in the U.S. at the moment and that's pulling the gasoline from Europe and some other places to supply the shortfall." Although U.S. gasoline stocks rose by another 1.3 million barrels last week, a fourth consecutive weekly rise, they were still 14.8 million barrels short of last year's levels, according to government data released on Thursday. While gasoline prices have risen worldwide, diesel prices are expected to fall, particularly in Europe due to new refining capability that is coming on in the Middle and Far East.
 
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"It's the driving season and with the inability of the United States, in refining output, to actually meet its demand, Gasoline stocks are pretty low in the U.S. at the moment and that's pulling the gasoline from Europe and some other places to supply the shortfall."

Bizarrely the UK is a net exporter of petrol.

However as I understand it there are imports because retailers such as the supermarkets source from overseas refineries. It is this trade which in the good times keeps the UK market 'honest' but when there are shortages in other markets exposes us more directly to price fluctuations on supplies that are being traded internationally.
 
it is excess tax for greedy politicians that make petrol high in this country.
 
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Yes, the vast majority of the forecourt price is tax and duty.

I noticed yesterday that diesel was 1p per litre cheaper than unleaded at my local Sainsbury filling station.
 
it is excess tax for greedy politicians that make petrol high in this country.

Well iPod and plasma TV expensing aside it's not as if the politicians get these billions in their own pockets.

If you didn't pay the tax via fuel duty then it would just be extracted by other means.

Of course if the politicians spent it a bit more efficiently maybe they wouldn't need to extract so much ....
 
If you didn't pay the tax via fuel duty then it would just be extracted by other means.

Of course if the politicians spent it a bit more efficiently maybe they wouldn't need to extract so much ....


Well spoken. If it is extracted by other means it may be fairer though as it goes across the board but right now it seems that motorisits tend to pay for a lot of things in this country. New schools,hospitals, roads , domestic violence victims, just charge the motorist
 
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I think it's great that petrol prices are high in the US .. it is still too cheap there and they use far too much of it.

The only way to get the US more environmentally aware/friendly is to make the price of petrol high -- hit them where it matters.
 
Methinks there is something not quite right here. If the US cannot refine its fuel to meet demand, it must be stock piling crude. If that is the case, eventually the price of crude will drop so forcing the price of petrol down. This would be sooner rather than later as I would not have thought the refineries would want their money tied up in stock, or am I missing something? The Amrican refineries must know the demand at this time of year, so why have they not refined the fuel to meet the demand now? $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ and then in this country £££££££££££££££££££££££££££££££££££££ to the fuel companies:D
 
Well there's plenty to get out of Iraq yet
 
It's a little bit of a non-story as this happens every year at this time - must be quiet on the news front...

Much more efficient for the US to buy in refined products for this 6-8 week peak then to have money tied up in refining capacity and storage.

The same happens in winter - but for heating oil.

It's just that the US is such a large market that it has a skewed impact on the worldwide price.
 
Sounds like hoarding crude to me
 
But Good on the Diesel Front

While gasoline prices have risen worldwide, diesel prices are expected to fall, particularly in Europe due to new refining capability that is coming on in the Middle and Far East.


It will be nice to be able to add "cheaper fuel" to the many benefits of diesel ownership. :D
 
Well spoken. If it is extracted by other means it may be fairer though as it goes across the board but right now it seems that motorisits tend to pay for a lot of things in this country. New schools,hospitals, roads , domestic violence victims, just charge the motorist

Well an awful lot is extracted by other means. If you get paid through PAYE for every £100 paid net to you there's usually at least another £100 paid to HMG on your behalf and on your employer's behalf before your employer even makes a profit (and pays VAT and tax related to that).

- Your overall tax + NI ~ 33%
- Employer's NI ~ 12%
- VAT collected on your raw costs 17.5% on top of the 12%

Add in the VAT on overheads and a reasonable margin and the real rate HMG collects off your labours is rather higher. And that's before corporation tax on any profits your employer might make.

Relative to that fuel duty is chicken feed.
 
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- Your overall tax + NI ~ 33%
- Employer's NI ~ 12%
- VAT collected on your raw costs 17.5% on top of the 12%

Me i am still in the 22% bracket as i am very poor:D :D :D

.

Relative to that fuel duty is chicken feed.

Well its a feed i would rather have in my own chicken rather than in Gordon browns coop
:bannana:
 
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Me i am still in the 22% bracket as i am very poor

Make that something like 25% or 26% then to deal with the NI and PAYE.

So for every £100 paid net the government gets about £92 instead of £100.

There is an underlying dishonesty in the UK tax regime that is down to the focus on income tax rates by both the politicians and the media.
 

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