RE: Petrol Prices Creep Up
Friday 14th February 2003
Fuel prices will rise in the next few days, according to the Petrol Retailers Association.
The effect of ongoing speculation about a war with Iraq means that motorists are now going to pay more for their fuel, probably before the weekend.
Ray Holloway, RMI petrol retailers director explained: "Sharp rises in the cost price of both petrol and diesel, something that neither petrol retailers nor oil companies have any control over will lead to increases of about 1 penny per litre being added to retail prices. This will be more in some cases, as many petrol retailers had not passed on earlier rises."
He continued: "In many rural areas of the UK, motorists will be paying more for their fuel than at any time since the fuel crisis of September 2000, with a litre of unleaded petrol or diesel priced at over 80 pence."
The rises are due to speculation about Bush's plans for Iraq as well as crude oil shortages as a result of a strike that's just finished in Venezuela.
Whilst many motorists will vent their frustrations at the oil companies, we shouldn't lose sight of the fact that around 80% of the price of a litre of fuel in the UK is tax.
Petrol Prices Creep Up
A penny here, a penny there, a shed load more tax enjoyed by the Chancellor
Fuel prices will rise in the next few days, according to the Petrol Retailers Association.
The effect of ongoing speculation about a war with Iraq means that motorists are now going to pay more for their fuel, probably before the weekend.
Ray Holloway, RMI petrol retailers director explained: "Sharp rises in the cost price of both petrol and diesel, something that neither petrol retailers nor oil companies have any control over will lead to increases of about 1 penny per litre being added to retail prices. This will be more in some cases, as many petrol retailers had not passed on earlier rises."
He continued: "In many rural areas of the UK, motorists will be paying more for their fuel than at any time since the fuel crisis of September 2000, with a litre of unleaded petrol or diesel priced at over 80 pence."
The rises are due to speculation about Bush's plans for Iraq as well as crude oil shortages as a result of a strike that's just finished in Venezuela.
Whilst many motorists will vent their frustrations at the oil companies, we shouldn't lose sight of the fact that around 80% of the price of a litre of fuel in the UK is tax.
Discussion
P*Ting said:
Duty on petrol is a fixed amount, not a percentage of the price at the pump.
Duty is fixed yes, but as it's about 500% you'll find most of the rise will be tax.
Strange definition of "fixed" you have there ;-)
If the petrol companies put the price up by a penny a litre, the total rise in the price at the forecourt will be 1p ( plus the VAT, as andytk rightly points out :-) )
The duty is absolutely fixed (unless changed in the budget, which it hasn't been in the last two) - ie xx pence (about 50p), not a percentage or scalar amount.
Jim
Why the hell are they blaming a war on Iraq when it hasn't even started yet?
Speculation - people are buying oil for future delivery. Current demand will have increased with people buying in extra concerned about supply dropping in the case of a war.
If there is a war, oil prices _could_ rocket if production in the region drops significantly.
However OPEC has pledged to keep production stead no matter what happens in Iraq, so in theory prices should be pretty stable.......
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