Fuel Price, Higher or Lower

Fuel Price, Higher or Lower

Author
Discussion

mat13

Original Poster:

1,977 posts

180 months

Monday 22nd December 2014
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Im sure we have all noticed that in recent weeks the price of fuel has dropped quite dramatically, so what Im asking is do you think its going to go higher or lower in the short term? Obviously in the long term its only going to climb as its a finite resource, however im thinking more in the next year or two.

My main reason for asking is that we run a small family business and have several diesel vehicles and room for a diesel storage tank, with the current low prices im wondering if the cost of buying a second hand diesel tank (around 3-400 pounds) would be offset by the savings we could make against future rises in the cost of diesel.

ging84

8,829 posts

145 months

Monday 22nd December 2014
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it's not obvious that it is going to climb in the long term at all, and it is not a finite resource, fuels can be and are produced from renewable sources there just currently is little incentive to when oil is so readily available

For the last 4-5 years the oil price has stayed around $100 a barrel, it is unlikely we will ever see inflation adjusted oil prices return to this level, except in response to short term crisis, and we certainly won't see them exceeding these levels in the long term.

Changes in duty may lead higher prices, but we are not going to see that happen in a pre election budget, so prices are going to be low for atleast the next year, and may well still have further to fall






BFG TERRANO

2,172 posts

147 months

Monday 22nd December 2014
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Possibly not worth the investment and theft risk. Also spills/ fire etc. unless your using 1000s of litres a week probably wiser to have an account at a local fuel station.

kambites

67,461 posts

220 months

Monday 22nd December 2014
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In absolute terms they are certainly going to rise simply because we're always going to have inflation not deflation.

In real terms, I think it's impossible to say what will happen to crude prices because, with the amount of speculation that goes on, if anyone knew what they were going to do they would already have done it. I don't see a good reason for them to move far in either direction at the moment. Pump prices will depend on duty levels which obviously depends on government policy which in turn probably depends on how well the nation as a whole is doing with its long-term CO2 and local air quality targets.

I think we'll see very significant duty rises in the next ten years simply because as far as I can see we're not going to be anywhere near meeting the CO2 emissions targets that we've agreed to and road fuel is always an easy target which gets quick results. It'll be interesting to see whether the government divorces petrol and diesel duty rates to try to clean up London's air.

Edited by kambites on Monday 22 December 08:00

Hoofy

76,253 posts

281 months

Monday 22nd December 2014
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Just wondering if it keeps (depends on how long you intend to store it I suppose). Couldn't you buy oil futures? nuts

J4CKO

41,287 posts

199 months

Monday 22nd December 2014
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Not sure what is going on but the oil price has stabilised a little, also, the FTSE is up and shares in the company I work for have rallied, from a low of under eight quid to just under nine, but might be the traders getting a bit festive or the "Dead Cat Bounce" thing.