RE: Drivers Not Benefiting From Cheaper Oil
Tuesday 12th August 2008
Despite wholesale prices for fuel plummeting recently drivers are yet to see any large drops at the pumps, the AA has revealed. However experts are predicting that a price war is on the horizon and drivers can expect much lower prices.
Drivers Not Benefiting From Cheaper Oil
AA says fuel should be cheaper
Supermarkets have already started slashing prices with Asda charging 109.9p a litre for unleaded and 121.9p for diesel at its 171 forecourts. Morrisons had already knocked 2p a litre off diesel and unleaded and Tesco has pledged to match the lowest pump prices 'almost immediately'.
The AA has welcomed the reductions but accused some forecourts of not dropping prices in line with falling crude costs. Oil has dropped to around 115 dollars a barrel from its record high above 147 dollars last month.
AA spokesman Paul Watters said some regions were not getting cheap enough fuel. 'Cheapest prices in many southern towns are still two or three pence above what drivers are paying in areas where competitive supermarkets are engaged in a dogfight,' he said. 'Since the all-time high of 119.7 pence per litre for petrol and 133.25 for diesel, the wholesale price for petrol coming into the UK has fallen 18% and 22% for diesel. This has yet to be reflected in average UK prices.'
Discussion
Mr Whippy said:
Why is diesel 10% more than petrol still?
Dave
you get less of it from a barrel of crude than you do petrol.Dave
Its also harded to refine now that it has to be ultra-low sulphur content, therefore its more expensive to produce than it used to be.
At least thats what the fuel monopoly tells us......
Edited by GreigM on Tuesday 12th August 12:09
Mr Whippy said:
Why is diesel 10% more than petrol still?
Dave
Put simply, because when diesel was cheap Nu Labia incentivised us to buy diesel cars... then when diesels started selling by the shedload our superb Govt realise their tax take was falling - so they taxed it up the yingyang to get the revenues back up.Dave
Marvellous eh
I find it almost funny that I'm getting all excited about petrol being "only" 1.09 a litre! when a while ago I was shocked beyond belief when hit a pound a litre! - jesus - I'm off to the states next Tuesday and i'll be renting som form of gas guzzler - the prices over there will be an eye opener!
GreigM said:
Mr Whippy said:
Why is diesel 10% more than petrol still?
Dave
you get less of it from a barrel of crude than you do petrol.Dave
Its also harded to refine now that it has to be ultra-low sulphur content, therefore its more expensive to produce than it used to be.
At least thats what the fuel monopoly tells us......
Edited by GreigM on Tuesday 12th August 12:09
Mr Whippy said:
Why is diesel 10% more than petrol still?
Dave
Supply and demand, it's currently in the mind set of the public that diesel is cheaper so lots of diesel cars are being sold; the refineries can't keep up with demand of the switch from petrol to diesel(as they were made some time before this switch and takes years to completely change your output to match demand in this way). Also heating oil is effectively diesel at the refinery level, so expect it to get worse in winter. Dave
Callan.T89 said:
Surely this drop in oil price is only temporary due to China closing all there factories and taking cars off the road for a month, while the olympics are on.
It'll be back to $135 a barrel in a months time.
It hit a high of $147 whilst an Iran conflict was in the news. Some places saying the markets have been flooded hence why we are seeing the 'massive' drops.It'll be back to $135 a barrel in a months time.
I'm sure if more conflict in the Middle East crops up we'll see the price go up, thing is it takes about 12 week to get from the ground to the pumps, so really we should see the prices do that, never do mind
GreigM said:
Mr Whippy said:
Why is diesel 10% more than petrol still?
Dave
you get less of it from a barrel of crude than you do petrol.Dave
Its also harded to refine now that it has to be ultra-low sulphur content, therefore its more expensive to produce than it used to be.
At least thats what the fuel monopoly tells us......
Edited by GreigM on Tuesday 12th August 12:09
what never fails to suprise me is that as soon as barrel prices rise petrol stations change the pump price, no matter how much reserve fuel they have in their underground tanks. However when the barrel price reduces, they wait until the tanks are almost empty and they receive their replenished stock to reduce the pump price.
I also tried Asda fuel - my BMW did at least 35 miles less per tank each time, so not worth the couple of pence/part pence to go for the cheaper option. The journeys were similar/varied as ususal and I tried the fuel for a number of fill-ups.
I also tried Asda fuel - my BMW did at least 35 miles less per tank each time, so not worth the couple of pence/part pence to go for the cheaper option. The journeys were similar/varied as ususal and I tried the fuel for a number of fill-ups.
Edited by RWX3L on Tuesday 12th August 12:40
muffinmenace said:
Mr Whippy said:
Why is diesel 10% more than petrol still?
Dave
Supply and demand, it's currently in the mind set of the public that diesel is cheaper so lots of diesel cars are being sold; the refineries can't keep up with demand of the switch from petrol to diesel(as they were made some time before this switch and takes years to completely change your output to match demand in this way). Also heating oil is effectively diesel at the refinery level, so expect it to get worse in winter. Dave
I know more than I can say, but oil companies are looking to spend £££millions to increase diesel output. They will only do this if they can make a return on it (like any company you work for).
Why is that a surprise - its always been the case that drivers are conned until someone speaks up. AA, get lobbying at Parliament and the media should be talking to the transport committee. Motorists are always charged immediaty the price goes up, its about time we benefited when it goes down.....whats the betting that the retailers, including supermarkets are just cashing in at the moment because people are not buying as much rubbish as they used to.
enda-mmg said:
the idea that you can refine more petrol from a barel than diesel...sound slightly questionable!! can any1 xplain why just 18months ago petrol was almost between 5 and 10cent a litre more expensive...now it the other way about?
Why? Diesel fuel contains more energy per litre (where else is the economy benefit coming from?), so it seems quite logical that it's a 'heavier' fuel...
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