Fuel Prices near me
Discussion
TeaNoSugar said:
Normally in these situations OPEC cut production to maintain prices, but they haven't done that so far, so what's different this time? Is it down to new US production from shale or wherever it is they're getting it?
The U.S. shale is what is hurting the Saudis. The theory is that they are not cutting production so as to lower the price to a point that extracting the shale oil becomes non-cost effective. The oil barons, at a recent meeting in Texas claims they anticipated this and have made adjustments. Time will tell. I am pretty sure at some point, it will be in enough peoples' interest to get prices back up.skyrover said:
Price war... OPEC want's US shale producers out of buisness
I must say, that is a far more to the point version of the above post. 
http://www.cnbc.com/id/102234051
http://www.economist.com/news/leaders/21635472-eco...
Edited by Jimbeaux on Thursday 11th December 17:07
V88Dicky said:
skyrover said:
Price war... OPEC want's US shale producers out of buisness
And America wants to cripple Russia so they're not that bothered what the Saudis do.The Americans like being self sufficient and they wont need to go round ensuring supply at vast cost, the Saudis have Trillions of dollars so can sit it out for a bit.
It can only fall so far as 58P per litre is Fuel Duty and that is static, there is the retailers little bit, the cost of the fuel itself then there is VAT which is based on the total cost of the other components at 20 percent, so if the price falls, then so does the VAT.
At £1.34, the fuel cost was 48 p per litre, 22.2p VAT
At £1.18 as it is now, the cost of the fuel is 35 p and the VAT is now 19.6 p.
So, the Government are losing 3 Pence per litre, I fill my car up, that is £1.80 or so they are down, they wont like that times millions of vehicles.
Oil peaked at $140 a barrel, its now $60 odd, so well under half, the fuel cost part of a litre has only dropped 13 pence, I reckon that there is scope for it to fall further but it never falls as quickly as it tracks rises, I reckon it will bottom out about £1.10 a litre and fluctuate a little bit round that until OPEC or the Yanks give in, or there is a bit of a skirmish in the middle east. At £1.10 the Govt will be losing 4p a litre on VAT, I think if they must recoup this then they should do away with anyone not paying VED, everyone should pay to use the road, regardless of the co2 emitted, I think every driver should pay a minimum of £100, dont care if they are under 100 g/km, they still wear the roads out, take up space, roads still need to be built.
Good thing is, people will have a few more quid to spend, bad news is they may spend it on petrol and use their cars more, thus undoing some of the positive aspects of a high oil price, i.e. people finding alternatives.
I think this may be for a while, but I hope it doesn't make everyone complacent about alternatives and stifle the development of EV's, as get that right, a few P off the price of a litre of unleaded will feel like nothing.
Edited by J4CKO on Friday 12th December 14:09
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