Price of fuel

[Dells]

Has anyone else noticed that the price of petrol & diesel has suddenly gone the same, 2 fuel stations near me where both are £1.49.9, what’s going on.

Dell

[ColinBarber]

Oil prices have been steadily rising over the last month.

[Malc1]

it's always been an unofficial and illegal cartel .............. when buyers get thin on the ground, say in economic hard times .  coming up now .  then Asda is the first to see sense and try to capture more of the diminishing market ............. otherwise that's why I use the best value fuel around and will only ever try to use Lidl and Aldi coz they don't sell petrol

Malc

[Brian R]

As Colin says the barrel price has been steadily rising from circa $70 to $82 but mind you I don't feel we reaped the full benefit when it fell to $70 and less for a while.

Having been in Dorset some of this week, they must have some of the most expensive petrol in the south! Ironic, given Europe's largest onshore extraction facility is located not too far from Corfe. Then again their output of, 13500 bpd is a spit in the ocean and nowhere near enough to satisfy UK consumption.

Personally, our local Sainsbury are the petrol champions and charged me £1.409/litre when I filled up just yesterday. I'm afraid a degree of price volatility has returned, but I think it will be reasonably short-lived. Having said that, I doubt we'll see less than £1.40/litre again.

[Dells]

I understand oil prices have been rising but it’s the fact that both are the same price normally diesel is a few pence dearer.

life the government wants people to move away from diesel they should do something about it.

Dell

i paid £1.36 2 weeks ago for petrol.

[scudney]

Not too long ago diesel was 20p on average dearer than petrol 

[Brian R]

2 hours ago, Dells said:

I understand oil prices have been rising but it’s the fact that both are the same price normally diesel is a few pence dearer.

life the government wants people to move away from diesel they should do something about it.

Dell

i paid £1.36 2 weeks ago for petrol.

The problems stem from when the UK government offered all manner of incentives to switch to diesel, and then promptly created a cost differential between it and petrol. That differential is now reducing and so it should given diesel is an easier fuel to produce. Demand is of course dropping like a stone, further pushing the cost down.

Sadly, diesel was demonised by the VAG cheat system when in practice it is a much more efficient fuel than petrol and that the emissions "problem" was a long way down the road to being completely solved. Even now I believe there are some Mercedes diesels which have cleaner emissions than their petrol counterparts, but I suspect their days are numbered. Basically an irrational fear of diesel now exists, when in reality petrol in itself is not a saintly fuel.

[steve2006]

I just wish the optical pricing would disappear “149.9” just make it £1.50 please, it just insults my intelligence!

[dutchie01]

You folk are complaining about prices? How about todays prices in Holland.

Petrol E10 - Euro 2.39/ltr. E5 at 2.25. Diesel 2.05/ltr.

Taxtaxtax.

[Brian R]

26 minutes ago, dutchie01 said:

You folk are complaining about prices? How about todays prices in Holland.

Petrol E10 - Euro 2.39/ltr. E5 at 2.25. Diesel 2.05/ltr.

Taxtaxtax.

Strewth that is high! Is that down to policy more than market?

[dutchie01]

Some 60% is tax. 8% profit and 32% exploitationcost ( official figs)

 

 

[Malc1]

Fuel duty is currently levied at a flat rate of 52.95p per litre for both petrol and diesel, while VAT at 20% is then charged on both the product price and the duty. 

I've just lifted this from the RAC website stuff

A ltr of fuel at say £1.50p pump price ........... so taxation is  52.95p in Fuel Duty plus 25p in vat  = about 78p per litre so that means the forecourt cost price incl profit is 72p / ltr  .  now then, how much is the price delivered to Tesco et al so we can determine the pump gross profit

Any thoughts ?

Malc

 

 

[Linas.P]

3 hours ago, dutchie01 said:

You folk are complaining about prices? How about todays prices in Holland.

Petrol E10 - Euro 2.39/ltr. E5 at 2.25. Diesel 2.05/ltr.

Taxtaxtax.

E10 more expensive than E5? How does that make sense... recently in France I have very much enjoyed E85 for 0.97 Euro 

[Dells]

5 hours ago, steve2006 said:

I just wish the optical pricing would disappear “149.9” just make it £1.50 please, it just insults my intelligence!

Quite agree try buying 1L of fuel.

[Dells]

1 hour ago, Linas.P said:

E10 more expensive than E5? How does that make sense... recently in France I have very much enjoyed E85 for 0.97 Euro 

I had two weeks in France early June and paid €1.99 for petrol.

Dell

[dutchie01]

1 hour ago, Linas.P said:

E10 more expensive than E5? How does that make sense... recently in France I have very much enjoyed E85 for 0.97 Euro 

Correct my mistake other way around

[Linas.P]

32 minutes ago, Dells said:

I had two weeks in France early June and paid €1.99 for petrol.

That is the reason I was more than happy to put the alcohol in the tank, when the difference was so much.

[Gary H]

I've noticed it's been creeping up again over the last 7/10 days. Literally a penny a day in some cases.

Both Shell stations not too far from where I live (I have two which are literally a mile from one another) are up to £1.51 and £1.52 per litre respectively for petrol. The pair of them were £1.46 per litre the last time I passed them five days ago. 

The BP station down the road from me is currently at £1.47 per litre for petrol. I filled up there just over a week ago and that was at £1.41 per litre. 

The local Morrisons electronic sign has been conveniently 'broken' over the last week, but my father has informed me that's gone up 3p per litre over the last week. 

[Malc1]

I’m quite convinced we’re being totally fleeced and hung out to dry “ over a barrel “ ( of oil) by all these manipulating fuel retail Userers and Thieves the lot of ‘em 

Shame on the fuel retailers for their total disregard for the publics challenging personal finances in these, for very many, straitened times 

As I said earlier I for one will be trying to do my general shopping away from these “ crooks” and giving my daily business to those that don’t sell fuel and fleece us ….. such as Aldi and Lidl supermarkets 

Malc 

Rant over but I fear not for long ! 

[ColinBarber]

6 hours ago, Malc1 said:

Fuel duty is currently levied at a flat rate of 52.95p per litre for both petrol and diesel, while VAT at 20% is then charged on both the product price and the duty. 

I've just lifted this from the RAC website stuff

A ltr of fuel at say £1.50p pump price ........... so taxation is  52.95p in Fuel Duty plus 25p in vat  = about 78p per litre so that means the forecourt cost price incl profit is 72p / ltr  .  now then, how much is the price delivered to Tesco et al so we can determine the pump gross profit

Any thoughts ?

Malc

That’s estimated by many, normally showing the retailer having a 3 to 6% gross margin.

Here’s one from the RAC (half way down the page)

https://www.rac.co.uk/drive/advice/fuel-watch/
 

 

 

 

[Malc1]

Then retailer margin on petrol is about 6% ! 
 

A figure that’s probably net after all costs relating to the business of selling the petrol ….. pumps technology forecourt depreciation and all else no doubt …… likely an extortionate and unacceptably high margin …… we will never know I’m sure 

They’ll never reveal the true profit margin to the public nor the Govt nor the RAC I’ll wager 

nevermind, we Joe Public will be continually disadvantaged by these purveyors of our essential fuel needs I’m sure 

Malc

[Illogan]

An article in the Guardian rag in June 2023:

The Opec+ group of oil-producing countries has reached an agreement to extend output cuts into next year, in the face of flagging prices and a looming supply glut.

The oil cartel reportedly agreed to reduce its output by 1.4m barrels a day, at a meeting in Vienna on Sunday of member countries – which include the big producers Saudi Arabia, Iraq and Russia.

Opec+ sources told Reuters that the group was likely to agree a “policy rollover” for 2023 and make additional reductions in output in 2024 if new production baselines, from which cuts and quotas are calculated, for members were agreed.

Saudi Arabia has agreed to make a voluntary reduction of 500,000 barrels a day in its output, although it is not clear when the cuts will begin.

Opec+, which groups the Organisation of the Petroleum Exporting Countries and allies LED by Russia, produces about 40% of the world’s crude, meaning its policy decisions can have a significant impact on oil prices.

 

[Malc1]

Of course we’re held to ransom on Fixed Prices by opec and oil producers BUT irresponsibly high profit margins charged by the prime UK retailers Tesco Asda Sainsburys Morrison  MFG and the like are a NATIONAL DISGRACE 

Malc 

[Dells]

Sorry I seem to have stepped onto a hornet’s nest but it just seems like profiteering to me if all of a sudden they can drop diesel prices by a few pence.

Dell

[Malc1]

37 minutes ago, Dells said:

it just seems like profiteering

they're running a business in challenging times and at every twist and turn they will inevitably make a profit BUT it's what we, the general public might consider a reasonable profit and NOT created by cartel type arrangements whether unofficial or not ..  so where's the competition element in the retailers thinking ?  it's GONE

During covid times i think the UK Govt actually allowed the retailers of fuel to operate an Official Cartel BUT that has been formally dismantled BUT clearly the retailers think it's still ok to RIP US OFF willy nilly 

the buggers eh !

Malc