Petrol prices - are we being ripped off?
Discussion
I mean by the companies, as well as by the usual taxes?
It seems that the price of crude has dropped by over 10% from its peak in May and the £/$ exchange rate is pretty much unchanged over the same period, yet petrol prices are as high now as they've ever been?
The fact that Sainsburys are now offering 10p off per litre on a qualifying spend suggests to me that, although it's a loss leader for them, there's significant margin in the forecourt price to allow a significant cut.
I believe some of the other supermarkets have also recently announced price cuts?
It seems that the price of crude has dropped by over 10% from its peak in May and the £/$ exchange rate is pretty much unchanged over the same period, yet petrol prices are as high now as they've ever been?
The fact that Sainsburys are now offering 10p off per litre on a qualifying spend suggests to me that, although it's a loss leader for them, there's significant margin in the forecourt price to allow a significant cut.
I believe some of the other supermarkets have also recently announced price cuts?
youngsyr said:
I mean by the companies, as well as by the usual taxes?
It seems that the price of crude has dropped by over 10% from its peak in May and the £/$ exchange rate is pretty much unchanged over the same period, yet petrol prices are as high now as they've ever been?
The fact that Sainsburys are now offering 10p off per litre on a qualifying spend suggests to me that, although it's a loss leader for them, there's significant margin in the forecourt price to allow a significant cut.
I believe some of the other supermarkets have also recently announced price cuts?
10p off per litre is just £5.00 off at the most for the average fill (usually less) and £10.00 at the most.It seems that the price of crude has dropped by over 10% from its peak in May and the £/$ exchange rate is pretty much unchanged over the same period, yet petrol prices are as high now as they've ever been?
The fact that Sainsburys are now offering 10p off per litre on a qualifying spend suggests to me that, although it's a loss leader for them, there's significant margin in the forecourt price to allow a significant cut.
I believe some of the other supermarkets have also recently announced price cuts?
They will easily recoup this with the profit from your £50 shop.
It is not really indicative of the real cost of fuel. While I am sure there is a nice margin there somewhere, the discounts are 'fuelled' by profits made from your shopping.
A tank of petrol on an average size car is £70.
A nights drinking is probably the same.
A tank of petrol is useful and provides enjoyment in the right car.
A nights drinking can be fun (especially if your lucky
) but inevitably leads to tiredness and headaches.
I would say petrol/alcohol is expensive and i wouldn't mind petrol/alcohol being cheaper.
But I have a car that does 23mpg average and could easily find something that does double that but it would be boring, dull and pointless much like a night out without drinking. You pay your money and take your choice.....
Personally i would rather give up certain aspects of drinking,eating out or drive less miles than drive a s**t box unless i was driving a s**t box to save for something better in the future or investing it in other areas i.e property ,etc.
So in answer to your question probably yes, but not much can be done about it due to the current economic situation of this country. As fuel is seen as a luxury not a necessity it is bound to attract additonal tax, although i disagree with this.
A nights drinking is probably the same.
A tank of petrol is useful and provides enjoyment in the right car.
A nights drinking can be fun (especially if your lucky
) but inevitably leads to tiredness and headaches.I would say petrol/alcohol is expensive and i wouldn't mind petrol/alcohol being cheaper.
But I have a car that does 23mpg average and could easily find something that does double that but it would be boring, dull and pointless much like a night out without drinking. You pay your money and take your choice.....
Personally i would rather give up certain aspects of drinking,eating out or drive less miles than drive a s**t box unless i was driving a s**t box to save for something better in the future or investing it in other areas i.e property ,etc.
So in answer to your question probably yes, but not much can be done about it due to the current economic situation of this country. As fuel is seen as a luxury not a necessity it is bound to attract additonal tax, although i disagree with this.
Edited by Froomee on Tuesday 16th August 16:14
Twincam16 said:
Froomee said:
A tank of petrol on an average size car is £70.
A nights drinking is probably the same.
What's your tipple? Myrrh?A nights drinking is probably the same.
Food £10.
Entry fee on average in London is £5.
So £20-£25 plus drinks at circa £4(single)-£6(double) each. Plus obligatory drinks for anyone who has done me any favours recently that is also out.
Obviously a night out can be cheaper i.e. walk to local wetherspoons (£3.50 a double), go to a local place before 12 for no entry fee and drink bottled beer at £3.50 a go and then walk home without eating. But equally nights out can be more expensive.
I was once told it's not how much you earn thats important rather how little you spend equally you only live once so finding a good balance is upto the individual.
I would prefer to give up my "personality in a glass" before my car.
You're being "ripped off" on a vast range of things - in some cases you're probably aware of it (and kidding yourself than higher prices = quality), in other cases you've no idea.
Thing is, I don't remember people demanding that designer jeans are made cheaper due to lower world cotton prices or anything like that - so why is petrol different?
Oh yes! - because you've made yourself dependant on it. Society accepts and even encourages this dependancy and suddenly everyone is in a tizzy over it!?
End of the day, cars are cheap things for what they offer thus the 'market' isn't working because there's nothing competing with fuel and thus companies can do as they please.
Solve that how you like but demanding legislation or government intervention isn't a very 'market focussed' approach and this place's usual "right wing lean" means you're all supposed to believe in that s
t - so...
Thing is, I don't remember people demanding that designer jeans are made cheaper due to lower world cotton prices or anything like that - so why is petrol different?
Oh yes! - because you've made yourself dependant on it. Society accepts and even encourages this dependancy and suddenly everyone is in a tizzy over it!?
End of the day, cars are cheap things for what they offer thus the 'market' isn't working because there's nothing competing with fuel and thus companies can do as they please.
Solve that how you like but demanding legislation or government intervention isn't a very 'market focussed' approach and this place's usual "right wing lean" means you're all supposed to believe in that s
t - so...youngsyr said:
the price of crude has dropped by over 10% from its peak in May and the £/$ exchange rate is pretty much unchanged over the same period, yet petrol prices are as high now as they've ever been?
Only about 30% of the cost of a litre is related to the price of oil. The other 70% is tax, transport costs and margin for the petrol station.So a 10% drop in the price of crude will impact 30% of the price of a litre. So 10% of 30% of £1.35 = 4p.
Now as far as I was aware the exchange rate is not the same and has also moved hence why this small reduction has been wiped out.
Let's be honest tho - all this talk of exchange rates and transportation costs etc. is total ste.
End of the day, when raw materials are more expensive, prices go-up - but coming down again always takes much longer - because people are greedy and never miss a chance to pocket a few bob.
Normally, market forces drive prices into-line but petrol is such a stable demand product that there's nothing forcing anyone to comply with that - at least not instantly.
Forecourts are on TINY margins (it's actually not worth selling petrol from smaller forecourts at-all, so small is the profit) so they need to make everything they can (thus the price of a pastie!!) but oil companies are at the opposite extreme, so enormous that they can neither react quickly nor can they really challenge their opponents (as they're also enormous) and so you end-up with this air of compliance with everyone making-up nonsense excuses whilst pocketting money YOU CANNOT STOP YOURSELF FROM GIVING TO THEM!!
te.End of the day, when raw materials are more expensive, prices go-up - but coming down again always takes much longer - because people are greedy and never miss a chance to pocket a few bob.
Normally, market forces drive prices into-line but petrol is such a stable demand product that there's nothing forcing anyone to comply with that - at least not instantly.
Forecourts are on TINY margins (it's actually not worth selling petrol from smaller forecourts at-all, so small is the profit) so they need to make everything they can (thus the price of a pastie!!) but oil companies are at the opposite extreme, so enormous that they can neither react quickly nor can they really challenge their opponents (as they're also enormous) and so you end-up with this air of compliance with everyone making-up nonsense excuses whilst pocketting money YOU CANNOT STOP YOURSELF FROM GIVING TO THEM!!
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