Petrol Price

[Scott_F]

All i'M SAYING, IN THE SIMPLEST POSSIBLE TERMS,IS FOR SPENDING THE SAME PROPORTION OF YOUR DISPOSABLE INCOME, YOU WILL TRAVEL FURTHER TODAY THAN IN 1976 (SORRY FOR THE CAPS). Does this not mean that in real terms fuel is cheaper?

No - it just means that having paid more in real terms for your fuel it may last a bit longer depending on what car you drive now as compared to the past.

It takes me far less to get drunk than it did when I was 21 but alcohol hasn't got any cheaper in the pub !

 

[KillerHERTZ]

 

[st4]

I am getting a healthy 37mpg + from my car. I have noticed now I stick an extra tenner in it per week to get to work, so another £520pa in fuel.

Its not the price of fuel that annoys me so much, but the poor condition of roads and bodged repairs of potholes thats really irks.

 

[MOCAŠ]

Letter from George Osborne

Do you suppose they misspelled his name deliberately?

Who's misspelled whose name?

 

[F0ul_Oli]

Fuel prices are mad, but its mostly down to how they are made up that defines if they are high or affordable.

Firstly Oil is sold in Dollars, so the exchange rate makes a huge difference - in fact the majority of the cost over the past two years has been down to the pound loosing its value to the dollar.

Secondly, there is the damn tax which is well over 100% of the fuel's value. Raw price is 40p while total tax (DUTY & VAT) is around 80p or so.

Regardless of how things are in the middle east, if the government wanted to give the economy a boost, all it needs to do is to dump the VAT or halve the DUTY. The extra cash in people's pocket would certainly be spent on other aspects of the economy, as well as helping reduce the inflation we are currently seeing on food etc.

As things are, I have just gone from a 4x4 that did 28 mpg on a good day to a S202 which is seeing 45mpg -and considering I am doing 24k a year - that is a hell of a boost to my budget!

 

[st4]

Fuel prices are mad, but its mostly down to how they are made up that defines if they are high or affordable.

Firstly Oil is sold in Dollars, so the exchange rate makes a huge difference - in fact the majority of the cost over the past two years has been down to the pound loosing its value to the dollar.

Indeed, imagine if the poun drops vs the dollar and the price of oil goes up. Eeek

Secondly, there is the damn tax which is well over 100% of the fuel's value. Raw price is 40p while total tax (DUTY & VAT) is around 80p or so.

Its maddening when fuel is relatively necessary, yet things like Sky TV, Gym subscriptions and alcohol are not taxed the the same extreme prejudice.

Regardless of how things are in the middle east, if the government wanted to give the economy a boost, all it needs to do is to dump the VAT or halve the DUTY. The extra cash in people's pocket would certainly be spent on other aspects of the economy, as well as helping reduce the inflation we are currently seeing on food etc.

It would be great, certainly I'd spend the extra cash, or maybe save it, and for long term prosperity we need off this borrowing culture.

However with modern governments, with one hand giveth, the other taketh, so we'd see other things tax shoot up.

 

[NOMONEYBUTAMERC]

V8 450SL , 2000 miles a year 20mpg. @ £10 per gallon = £1000. car cost £5,500 a year ago . Insurance £140 f/comp including breakdown cover. Depreciation , nil.
I could have bought an econobox last year , paid more for insurance, and lost more in depreciation than i have spent on fuel. Fuel prices in relation to 30 years ago ? totally bloody irrelevant . How much have i enjoyed owning my car ? Priceless.
We lost out more when we changed to decimal currency than at any other time in recent history , and for what ? And to think that ANY government gives a toss about how much we pay at the pump is laughable. They are rubbing their hands thinking how much more is going to the treasury with every increase. It would be incredibly naive to think that a politician who is happy write off aircraft, ships , and jobs by the boatload, really gives a toss how much we complain at the pump.Rant over , roll on the revolution.

 

[renault12ts]

No - it just means that having paid more in real terms for your fuel it may last a bit longer depending on what car you drive now as compared to the past.

It takes me far less to get drunk than it did when I was 21 but alcohol hasn't got any cheaper in the pub !

Black is white.

 

[nick mercedes]

£3 a litre petrol?

"Oil price 'could hit $220 a barrel'Experts at Japanese bank Nomura raise spectre of doubling in oil price if unrest in Libya continues"

(Oil could hit $220 a barrel, analysts fear | Business | The Guardian)

First Tunisia, then Egypt, now Libya, next Saudi Arabia?

 

[Palfrem]

I think I read somewhere that Libya produces about 2% of the worlds oil and the Saudis have agreed to up production to make up any shortfall.

The sooner all these headless chicken analysts are put up against the wall, the better we will all be.

It's just another scaremongering scam to raise prices

 

[nick mercedes]

It's just another scaremongering scam to raise prices

Scam or perfect storm?

"It is interesting to speculate on who or what might have stiffened the resolve of US client state, Bahrain, to face down the protesters. The US Fifth Fleet is based in Bahrain which the US regards as strategically important. In order to maintain the stability necessary to pursue its interests the US has backed the ruling royal family. To protect its vital oil supplies it has backed the ruling royal family in Saudi Arabia.

Saudi Arabia is vulnerable to the changes taking place around it. On one side Egypt, on another Yemen and across a 26 kilometre causeway on the eastern gulf, Bahrain. The Saudi royal family is locked in a dangerous time warp of its own making.

WikiLeaks claims a CIA assessment shows the Saudi’s have 40 per cent less in oil reserves than they claim"

So demands for democracy on all sides, and much less oil than there was supposed to be...

 

[Mike Walker]

£3 a litre petrol?

I think I read somewhere that Libya produces about 2% of the worlds oil and the Saudis have agreed to up production to make up any shortfall.

The sooner all these headless chicken analysts are put up against the wall, the better we will all be.

It's just another scaremongering scam to raise prices

Agree totally - apparently markets do not like uncertainty and analysists, who are associated with the markets, then create it
Ignore the doommongers and well poisoners

 

[219]

It can only go so far .

A 'saturation point' will be reached where consumers simply cannot afford to pay any more . Many people in this country are there already : having to choose between food , fuel for heating , fuel for transport .........

I doubt that a doubling of fuel prices would be tolerated .

Market forces will determine the prices .

 

[nick mercedes]

It can only go so far .

A 'saturation point' will be reached where consumers simply cannot afford to pay any more . Many people in this country are there already : having to choose between food , fuel for heating , fuel for transport .........

I doubt that a doubling of fuel prices would be tolerated .

Market forces will determine the prices .

The problem is that we don't produce enough to dictate the market price.

As we import so much energy the people we buy it off choose who pays what.

The Russians must be pleased by the way things are going in the Middle East...

 

[verytalldave]

The law of supply and demand dictates the final price of 99% of things.
Once a point has been reached then demand will fall away.
House prices, gold, gemstones and many other consumer led items all have their prices fixed by nothing more than supply and demand.

 

[neilrr]

The simple fact is there are too many people chasing too few resources. It'll only get worse as the population graph goes up in a straight, near vertical line with wars over commodities not too many years away.

Planet Earth needs to either limit (& ideally reduce) it's population or Mankind needs to start making people about a third of their present size, which is, admittedly, unlikely.

 

[EdmundIJones]

Its maddening when fuel is relatively necessary, yet things like Sky TV, Gym subscriptions and alcohol are not taxed the the same extreme prejudice.

Good point, now we need to consider inflation and look at the Consumer Price Index to see how things are really done. Remember that most goods come via road or train in this country so if the cost of petrol goes up or stays up, everything will increase, including the service sector without doubt.

There are all sorts of things you can do in economics to slice data how you want, maybe like Japan the UK could save 100billion by simple adjusting the PPP data to show how things cost different amounts.

This is why the BoE is better to choose interest rates than others as they are not effected by the media hype, they know the real picture form monthly surveys and know what tricks can be behind the scenes.

 

[verytalldave]

I fear for my kids and grandkids if what you say comes true.
I am too old to worry about that aspect, but I think you have raised a valid point.

 

[biturbo]

its all the part of the solution to depreciating the huge enormous debt that has been piled up. No way were people able to pay it off or companies or goverments. Inflation is the way out, always has been in a fiat economy.

House prices built on ever increasing debt. Something like 1997 average morgage was 50k on average house price of 65k.
Now the average morgage is 140k on average house price of 165k.
The last 10years all we have done is get bigger debt.
2 ways to play, japanese style of zimbabwe.
only thing is its not like the 70s , 80s etc with massive pay rises, there is no pay rises, private sector will move workforce overseas or production etc if costs get to high.
Trouble with england is all due to high housing costs.
High house costs means high costs for staff high costs for business.

Btw how about running of a V12 Twin turbo that only take premium fuel

 

[biturbo]

ow and business rates are like 49p on the pound for rent value, in 1980s it was 16p on the pound.