Price of petrol and Crude oil
Discussion
sherman said:
What rock have you been hiding under ?
Theres a lack of delivery drivers. The refinery can make the fuel fine. Theres just no one to deliver it to the petrol station. Hence when theres a lack of supply to the forecourt the price goes up.
So why does that exactly make the price go up?Theres a lack of delivery drivers. The refinery can make the fuel fine. Theres just no one to deliver it to the petrol station. Hence when theres a lack of supply to the forecourt the price goes up.
Evoluzione said:
sherman said:
What rock have you been hiding under ?
Theres a lack of delivery drivers. The refinery can make the fuel fine. Theres just no one to deliver it to the petrol station. Hence when theres a lack of supply to the forecourt the price goes up.
So why does that exactly make the price go up?Theres a lack of delivery drivers. The refinery can make the fuel fine. Theres just no one to deliver it to the petrol station. Hence when theres a lack of supply to the forecourt the price goes up.
The lorry drivers (companies)can charge what they want for delivery. As theres less of them about the price increases on a demand v supply ratio.
speedyguy said:
The Eurogarages lads were very astute virtually building up a monopoly of petrol stations and routes whilst DfT and the CMA were/are asleep at the wheel.
Just check out the prices they charge on their forecourts.
Have I missed the blindingly obvious here because a) Eurogarages are a (very small) minority player and b) their prices around here are exactly the same as everyone elses Just check out the prices they charge on their forecourts.
Don’t forget that crude oil is priced in USD and petrol is priced in GBP. Back in 2008 the GBP/USD was close to 2.0, today 1 GBP will maybe get you 1.37 USD. Hence, the difference in the cost of crude oil in GBP terms isn’t as great as you’d imagine.
Also don’t forget that the biggest element of the cost of petrol is the various taxes and duties that the government take.
Also don’t forget that the biggest element of the cost of petrol is the various taxes and duties that the government take.
JerryEXE said:
Don’t forget that crude oil is priced in USD and petrol is priced in GBP. Back in 2008 the GBP/USD was close to 2.0, today 1 GBP will maybe get you 1.37 USD. Hence, the difference in the cost of crude oil in GBP terms isn’t as great as you’d imagine.
Also don’t forget that the biggest element of the cost of petrol is the various taxes and duties that the government take.
This is the key point. The prices are what they are largely because we've had a decade of currency devaluation, not so much the driver shortage. Also don’t forget that the biggest element of the cost of petrol is the various taxes and duties that the government take.
DuckDuck said:
Answer me this, why is it that we have the highest petrol price since the start of the financial crisis in 2008, about £1.42/L, when the price of oil is nearly half what was then at $161/Barrel compared to now at $83/Barrel?
What's going on?
There is no other reason apart from the rich men at the top want more! What's going on?
Where have all the increases in price ended up across the world in different products and services. It’s not increasing the quality of life for the masses. The powerful are getting ever more efficient at draining money from the world. Covid and shortages are a great excuse to ravage.
littleredrooster said:
speedyguy said:
The Eurogarages lads were very astute virtually building up a monopoly of petrol stations and routes whilst DfT and the CMA were/are asleep at the wheel.
Just check out the prices they charge on their forecourts.
Have I missed the blindingly obvious here because a) Eurogarages are a (very small) minority player and b) their prices around here are exactly the same as everyone elses Just check out the prices they charge on their forecourts.
Their prices are amongst the highest if not the highest in many locations.
I think the supermarkets have a hand in this too.
They are able to sell fuel at a lower price point than most independent petrol stations due to their overall profit margins.
At present, the ones in my area seem to be going along with the current market and pricing accordingly - the Tesco near me is £1.35 now but 6 months ago was around £1.15.
When the supermarkets drop their prices, others will follow. No idea when that will be though.
They are able to sell fuel at a lower price point than most independent petrol stations due to their overall profit margins.
At present, the ones in my area seem to be going along with the current market and pricing accordingly - the Tesco near me is £1.35 now but 6 months ago was around £1.15.
When the supermarkets drop their prices, others will follow. No idea when that will be though.
OzzyR1 said:
I think the supermarkets have a hand in this too.
They are able to sell fuel at a lower price point than most independent petrol stations due to their overall profit margins.
At present, the ones in my area seem to be going along with the current market and pricing accordingly - the Tesco near me is £1.35 now but 6 months ago was around £1.15.
When the supermarkets drop their prices, others will follow. No idea when that will be though.
6 months ago the crude price was approx 58 usd/bbl, today it’s closer to 84/usd/bbl so not really surprising that Tesco put the price up.They are able to sell fuel at a lower price point than most independent petrol stations due to their overall profit margins.
At present, the ones in my area seem to be going along with the current market and pricing accordingly - the Tesco near me is £1.35 now but 6 months ago was around £1.15.
When the supermarkets drop their prices, others will follow. No idea when that will be though.
DuckDuck said:
Answer me this, why is it that we have the highest petrol price since the start of the financial crisis in 2008, about £1.42/L, when the price of oil is nearly half what was then at $161/Barrel compared to now at $83/Barrel?
Fuel duty has gone from ~50p/litre in 2008 to ~58p/litre now. VAT has gone from 17.5% to 20%. Oil has halved in $ price, but the £ has gone from being worth $2 at the start of 2008 to $1.37 now.The Elephant in the room has been there for years
When the Big Supermarkets realised that by adding a filling station they would increase revenue to the main superstore. AND to make it atttractive to /jos bloogs to fill up after he did his shopping than to got to his local Esso/ Shell/Regent/Fina/Cleveland/BP/Power etc they were always a few pence cheaper.
BUT over the years the prices of all stations in a certain areas to stabilise between 1 and 2 pence and even if Tesco could drop it further they dont So is it 'local agreements'?
The other thing i cannot get my head around is why The petrol is cheaper in other Tescos dotted around the country .Why, if they can sell it for e.g1.35 in Reading, they charge 1.41 up the road in Slough Surely it isnt transport costs. After all a tin of beans/packet of cornflakes, is the same in their shops UK wise , why isnt petrol the same.
When the Big Supermarkets realised that by adding a filling station they would increase revenue to the main superstore. AND to make it atttractive to /jos bloogs to fill up after he did his shopping than to got to his local Esso/ Shell/Regent/Fina/Cleveland/BP/Power etc they were always a few pence cheaper.
BUT over the years the prices of all stations in a certain areas to stabilise between 1 and 2 pence and even if Tesco could drop it further they dont So is it 'local agreements'?
The other thing i cannot get my head around is why The petrol is cheaper in other Tescos dotted around the country .Why, if they can sell it for e.g1.35 in Reading, they charge 1.41 up the road in Slough Surely it isnt transport costs. After all a tin of beans/packet of cornflakes, is the same in their shops UK wise , why isnt petrol the same.
Several layers of issues really. Post Covid bounce back, supply chain issues, weather events constraining production capacity, OPEC being slow to increase production themselves and now “political peak oil” in the form of the so called climate crisis encouraging a shift in investment from oil to renewables because it’s more right-on. It’s not politically correct to invest in oil anymore supposedly.
silverfoxcc said:
The Elephant in the room has been there for years
When the Big Supermarkets realised that by adding a filling station they would increase revenue to the main superstore. AND to make it atttractive to /jos bloogs to fill up after he did his shopping than to got to his local Esso/ Shell/Regent/Fina/Cleveland/BP/Power etc they were always a few pence cheaper.
BUT over the years the prices of all stations in a certain areas to stabilise between 1 and 2 pence and even if Tesco could drop it further they dont So is it 'local agreements'?
The other thing i cannot get my head around is why The petrol is cheaper in other Tescos dotted around the country .Why, if they can sell it for e.g1.35 in Reading, they charge 1.41 up the road in Slough Surely it isnt transport costs. After all a tin of beans/packet of cornflakes, is the same in their shops UK wise , why isnt petrol the same.
The petrol can come from different refineries. Not all the uk refineries are owned by the same company so each one will have their own price which will affect the price at the pump. Reading and Slough might be the delivery border for 2 different refineries. When the Big Supermarkets realised that by adding a filling station they would increase revenue to the main superstore. AND to make it atttractive to /jos bloogs to fill up after he did his shopping than to got to his local Esso/ Shell/Regent/Fina/Cleveland/BP/Power etc they were always a few pence cheaper.
BUT over the years the prices of all stations in a certain areas to stabilise between 1 and 2 pence and even if Tesco could drop it further they dont So is it 'local agreements'?
The other thing i cannot get my head around is why The petrol is cheaper in other Tescos dotted around the country .Why, if they can sell it for e.g1.35 in Reading, they charge 1.41 up the road in Slough Surely it isnt transport costs. After all a tin of beans/packet of cornflakes, is the same in their shops UK wise , why isnt petrol the same.
silverfoxcc said:
The Elephant in the room has been there for years
When the Big Supermarkets realised that by adding a filling station they would increase revenue to the main superstore. AND to make it atttractive to /jos bloogs to fill up after he did his shopping than to got to his local Esso/ Shell/Regent/Fina/Cleveland/BP/Power etc they were always a few pence cheaper.
BUT over the years the prices of all stations in a certain areas to stabilise between 1 and 2 pence and even if Tesco could drop it further they dont So is it 'local agreements'?
The other thing i cannot get my head around is why The petrol is cheaper in other Tescos dotted around the country .Why, if they can sell it for e.g1.35 in Reading, they charge 1.41 up the road in Slough Surely it isnt transport costs. After all a tin of beans/packet of cornflakes, is the same in their shops UK wise , why isnt petrol the same.
It's simple really; because they can. People are still buying it. When the Big Supermarkets realised that by adding a filling station they would increase revenue to the main superstore. AND to make it atttractive to /jos bloogs to fill up after he did his shopping than to got to his local Esso/ Shell/Regent/Fina/Cleveland/BP/Power etc they were always a few pence cheaper.
BUT over the years the prices of all stations in a certain areas to stabilise between 1 and 2 pence and even if Tesco could drop it further they dont So is it 'local agreements'?
The other thing i cannot get my head around is why The petrol is cheaper in other Tescos dotted around the country .Why, if they can sell it for e.g1.35 in Reading, they charge 1.41 up the road in Slough Surely it isnt transport costs. After all a tin of beans/packet of cornflakes, is the same in their shops UK wise , why isnt petrol the same.
It's not unlike the woman on TV the other week who had holiday accommodation somewhere in the S.West who said "We've had huge demand this summer, so we've had to put our prices up", and it was still fully booked. She didn't have to put prices up, she could have just let her holiday cottage at last year's rate and still would have been fully booked. Her prices were not governed by what other holiday cottage owners were charging.
No doubt she was only doing it to help the Treasury by paying more tax on her holiday letting business. A true patriot.
Tesco prices aren't the same for all of their products in all of their stores.
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