RIP OFF BRITAIN READ THIS !
Discussion
This blog does not answer the question about why petrol prices are still rising when the cost of oil is falling.
The answer lies in the profits of the oil companies. They're the same as our energy companies - blame rises on wholesale costs and pass on any rises, but only pass on a small proportion, if any, of the falls in costs. The result is an exponential rise in end prices to the consumer.
Crude oil price is currently $87.26 a barrel. 19 October 2007 was comparable to this, with crude oil at $88.60 a barrel. Petrol is currently £1.329 per litre at my local station. The price in October 2007? According to the AA (and this ties in with my memory), 96.9p per litre. So, an almost identical oil price 4 years ago, but petrol is OVER THIRTY SEVEN PER CENT more expensive. 37%. Not close, not just a few % a year due to inflation and the odd tax rise. THIRTY SEVEN PER CENT.
What? What, I hear you cry? Oil prices are in dollars and exchange rates affect it? Ok, $1 today is £0.61. What was it on 19 October 2007? Wait for it...... £0.61.
We're being mugged
The answer lies in the profits of the oil companies. They're the same as our energy companies - blame rises on wholesale costs and pass on any rises, but only pass on a small proportion, if any, of the falls in costs. The result is an exponential rise in end prices to the consumer.
Crude oil price is currently $87.26 a barrel. 19 October 2007 was comparable to this, with crude oil at $88.60 a barrel. Petrol is currently £1.329 per litre at my local station. The price in October 2007? According to the AA (and this ties in with my memory), 96.9p per litre. So, an almost identical oil price 4 years ago, but petrol is OVER THIRTY SEVEN PER CENT more expensive. 37%. Not close, not just a few % a year due to inflation and the odd tax rise. THIRTY SEVEN PER CENT.
What? What, I hear you cry? Oil prices are in dollars and exchange rates affect it? Ok, $1 today is £0.61. What was it on 19 October 2007? Wait for it...... £0.61.
We're being mugged
SILICONEKID340HP said:
Crude oil price is currently $87.26 a barrel.
No it isn't. Brent crude currently trades at around $109/barrel.SILICONEKID340HP said:
19 October 2007 was comparable to this, with crude oil at $88.60 a barrel. Petrol is currently £1.329 per litre at my local station. The price in October 2007? According to the AA (and this ties in with my memory), 96.9p per litre.
Possibly true.SILICONEKID340HP said:
So, an almost identical oil price 4 years ago, but petrol is OVER THIRTY SEVEN PER CENT more expensive. 37%. Not close, not just a few % a year due to inflation and the odd tax rise. THIRTY SEVEN PER CENT.
We've already established that the oil is not the same price as it was in 2007 but you have failed to consider the impact of increases in fuel duty and the increase in VAT. SILICONEKID340HP said:
What? What, I hear you cry? Oil prices are in dollars and exchange rates affect it? Ok, $1 today is £0.61. What was it on 19 October 2007? Wait for it...... £0.61.
Exchange rate today: £1 = $1.63940Exchange rate 19 October 2007: £1 = $2.0484
Edit to add:
If we assume that your Oct 2007 oil price is correct (and let's face it your track record isn't great) then:
$88.60/barrel at the real exchange rate of £1 = $2.0484 then the oil price is £43.25/barrel.
$109/barrel at todays exchange rate of £1 = $1.63940 then the oil price is £66.49/barrel.
Therefore the oil price in Sterling has increased by 53.7% since October 2007.
However, the price of petrol has only increased by 37%.
Edited by ralphrj on Sunday 7th August 18:59
All this thread is missing, is a suggestion that if we all boycott one specific brand of petrol, the price will get reduced 
easiest way to reduce the cost of petrol, is to reduce the MASSIVE amount of taxation on it . . . but thanks to the fiscal stewardship of Gordon "Winky" Brown in the past couple of decades, it's not something that will happen soon.
easiest way to reduce the cost of petrol, is to reduce the MASSIVE amount of taxation on it . . . but thanks to the fiscal stewardship of Gordon "Winky" Brown in the past couple of decades, it's not something that will happen soon.
but surely even a 50% drop in fuel duty would have a huge affect in the restart of the economy as the price of every thing would be able to drop due the the transport costs being cut. but are government cant see this why i know they make more money currently but if the economy got started whey would make more.
Why do British people just except everything ! why not do the same has the French then the goverment would listen..What makes it even worse our bank accounts are decreasing every year due to low interest rates and higher inflation causing your savings to shrink..After 10 years your savings will be gone !Im sick of this country..!we are going backwards..!
SILICONEKID340HP said:
Why do British people just except everything ! why not do the same has the French then the goverment would listen..What makes it even worse our bank accounts are decreasing every year due to low interest rates and higher inflation causing your savings to shrink..After 10 years your savings will be gone !Im sick of this country..!we are going backwards..!
The price of petrol in France is similar to here so I don't see your point.
SILICONEKID340HP said:
Why do British people just except everything ! why not do the same has the French then the goverment would listen..What makes it even worse our bank accounts are decreasing every year due to low interest rates and higher inflation causing your savings to shrink..After 10 years your savings will be gone !Im sick of this country..!we are going backwards..!
Do you mean that the VAT is different on fuel than other stuff in France? If you do, you should check how long it took to do that.
I was not just talking about France ,many countries demonstrate ,I think we are just to placid ,must be something they put in the water!What about the money they waste ,two wars and now the goverment are going to give refugees and asylum seekers a full state pension when they hit retiring age! They have not even worked or paid tax in the UK and it all comes from Brussels.What the hell are they doing !
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