Oil Prices
- Thread starter kikkthecat
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hawk20
MB Enthusiast
When diesel was 132p per litre many were saying it would never come down. Well it has. And IF oil stays at around $80 per barrel diesel and petrol will keep coming down. It is a very competitive market -believe it or not.
Just remember two things: there is a 6-8 week lag from world oil prices through to refining, delivery and arrival at the pumps. So early December will see the full effects of today's prices -provided world prices stay low.
Secondly, the pound has dropped from $2 to the pound to under $1-70 to the pound so where an $80 barrel once cost £40 to buy it now costs over £47 to buy.
Just remember two things: there is a 6-8 week lag from world oil prices through to refining, delivery and arrival at the pumps. So early December will see the full effects of today's prices -provided world prices stay low.
Secondly, the pound has dropped from $2 to the pound to under $1-70 to the pound so where an $80 barrel once cost £40 to buy it now costs over £47 to buy.
glojo
Hardcore MB Enthusiast
Extract from the Wall Street Journal (not the Daily Star)
Oil exporters racked up cash surpluses as prices soared to historic highs. Saudi Arabia, the world's largest exporter, is expected to record $138 billion this year, up from $95 billion in 2007.
But government spending also soared within OPEC and other big producers such as Russia, based in part on the expectation that oil prices would remain high.
Thats not strictly true either! Total taxation will have to have added VAT! there is a sliding scale involved with duty and VAT. I will try and find it and get it posted.
But for that surplus to be attributed to the $0.12/l price, would assume all oil produced in Saudi came from Saudi owned and run fields and then only sold within Saudi at Saudi prices.
For me the bigger issue of petrol price vs oil price is that OPEC countries are now very used to $80-$100/barrel, so when demand falls and prices fall they in turn cut supply and bring prices back to their desired value. The days of $20-$40/barrel seem long gone.
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lil.smartie
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Well in the US last month we paid $3.50 per US Gallon, about $1 per litre. Even at $1.65/£1 I shouldn't be paying £1.05 per litre like I did at Sainsburys tonight!
Kate
Kate
Yes, but that profit is on extraction, not on sale of refined product. The two are different - as I explained above, both crude prices and refined product prices are commoditised. It's the same old point as how can the oil majors make big profits and lose money at the pumps - answer - dead easy and often happens! This doesn't show that they made a profit on petrol sales at sub market rates.
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NOC = National Oil Company = state organisation. A state discount is a subsidy by any other name.
Not sure how comparing profit made on crude against a refined pump price of .12 litre demonstrates that a profit is turned on the pump price.
Not sure I understand the Daily Star reference either.
The VAT will always be 15% of the sale price (well 14.9% if you want an extra decimal place).
mapleleaf
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in Canada the price of fuel at the pump is directly linked to the cost of a barrel of oil on a day by day basis. I've never seen fuel prices fluctuate so much. eg a few weeks ago when oil was at its peak, petrol in Toronto hit $1.38/litre up from the prevailing cost of around $1.20 - $1.25- today its $1.09 / litre. The prices literarily fluctuate daily usually by a few cents / litre. its a bit bizarre at first but actually makes more sense than the UK method of applying changes.
Your link is dated Thursday, 21 September, 2000, 09:54 GMT 10:54 UK so might possibly be out of date.
Dieselman
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Yes it does.
See post #26
Fuel duty is currently 50.35p litre and doesn’t change from day to day.
Cost of refined product at your retailer varies from time to time.
VAT at 17.5 % is applied to the sum of the above.
Therefore VAT is always about 15% of the total, as Dryce said.
The percentage tax ( VAT plus duty) will vary according to the price of refined product. If the cost of refined product rises the overall tax percentage declines and vice versa.
As cost of refined product rises so the chancellors take rises in absolute terms but not percentage.
Tory policy of capping fuel prices would be achieved by flexing the duty component.
Cost of refined product at your retailer varies from time to time.
VAT at 17.5 % is applied to the sum of the above.
Therefore VAT is always about 15% of the total, as Dryce said.
The percentage tax ( VAT plus duty) will vary according to the price of refined product. If the cost of refined product rises the overall tax percentage declines and vice versa.
As cost of refined product rises so the chancellors take rises in absolute terms but not percentage.
Tory policy of capping fuel prices would be achieved by flexing the duty component.
st4
Banned
Both correct, and the real reason why we haven't seen the price of fuel drop the same % as oil has dropped is that 50.35p/litre of the cost of the stuff is fixed as duty, the principle value and the VAT will change with oil prices, but as the strength of the dollar has risen vs the pound we won't see this principle amount + VAT reduce the same % as oil prices.
hawk20
MB Enthusiast
I paid 117.9 for diesel at Tescos. Getting better and better.
