15-30p Difference in fuel?

[ZX10R NIN]

Before this recent conflict there was roughly an 7-10p difference between petrol & diesel.

Now it seems to be a 20-25p average, can someone explain why this is?

It can't be just profiteering can it?

[sixor8]

50% of diesel is imported. Most petrol is refined here, so I've read. The duty has been the same for many years.

[_Rodders_]

Don't we get unwanted diesel from the US?

Are they holding onto it in anticipation of a shortage?

[kambites]

Not all crude oil is created equal. North Sea crude, for example, is "light", which is to say it predominates lighter fractions used to make things like petrol but lacks the heavier fractions which produce diesel. Most North American crude is much the same.

Most of our diesel comes from the Middle East.

[Terminator X]

Interesting that cost increases are immediate. Don't they hold stocks months ahead?

TX.

[bergclimber34]

Why not profit when nobody will do a damn thing about it, you would?

People making food have been doing it for decades and again there is nothing you can do about it.

[Mad Maximus]

Terminator X said:

Interesting that cost increases are immediate. Don't they hold stocks months ahead?

TX.

Yup. It’s very interesting although not surprising in today’s world. I wonder if the price will drop immediately when the barrel cost drops?

[brillomaster]

I was a bit miffed to see this yesterday. Never known such a difference.

However, my like for like diesel car is 36% more fuel efficient than the equivalent petrol (38mpg vs 28mpg), so... if petrol is £1.44, diesel can go all the way up to £1.95 before its the same cost per mile as petrol.

So in terms of saving money, im still better off in a diesel.

[Bill]

bergclimber34 said:

People making food have been doing it for decades and again there is nothing you can do about it.

Do you mean farmers, supermarkets, or restaurants??

[RotorRambler]

Rocket & Feather

Prices rise rapidly like a rocket when oil costs increase, but fall slowly like a feather when costs decrease..

[5lab]

diesel prices are affected by heating oil, so the gap is normally wider in winter than in summer. Cost of heating oil has gone mental through the war, I guess pulling the price of diesel up - maybe more heavy oil comes from the gulf than other places?

[SDK]

Terminator X said:

Interesting that cost increases are immediate. Don't they hold stocks months ahead?

TX.

Basic business economics, which many people seem to not understand

You sell at the price it costs to replace the stock.
Else sell me your house for the price you paid for it !

[Opapayer]

SDK said:

Basic business economics, which many people seem to not understand

You sell at the price it costs to replace the stock.
Else sell me your house for the price you paid for it !

Came here to post the same. Thank god there’s some sanity in this thread.

[QuattroDave]

Opapayer said:

SDK said:

Basic business economics, which many people seem to not understand

You sell at the price it costs to replace the stock.
Else sell me your house for the price you paid for it !

Came here to post the same. Thank god there s some sanity in this thread.

and when the price drops so does the replacement cost but the retail price seems sticky that way around.

Price goes up - well our replacement cost is higher so we need to charge you more now
Price goes down - well our current inventory costs more so it needs to remain high until we replace it.

That's the business economics at the forecourt!

[vikingaero]

Opapayer said:

SDK said:

Basic business economics, which many people seem to not understand

You sell at the price it costs to replace the stock.
Else sell me your house for the price you paid for it !

Came here to post the same. Thank god there s some sanity in this thread.

Back in 2022 when diesel reached £2+ a litre, I refuelled the family Passat with diesel at 197ppl. I didn't use the car for 2-3 months and prices dropped to ~150ppl. It was my turn to drive on a caving road trip and when I got back home to the UK, I refuelled the car at 150ppl despite burning fuel that cost 197ppl. This meant I could only split the cost of the fuel at 150ppl....

[Terminator X]

SDK said:

Terminator X said:

Interesting that cost increases are immediate. Don't they hold stocks months ahead?

TX.

Basic business economics, which many people seem to not understand

You sell at the price it costs to replace the stock.
Else sell me your house for the price you paid for it !

That's hardly the same thing. If they have stock they bought it at the cheaper price. In a few months when they buy more stock jack the price up then. It's not like they don't make £billions from us already FFS.

"Shell has reported significant profits from fuel, with recent figures showing earnings of $7.7 billion in the first quarter of 2024 ..."

TX.

[Opapayer]

QuattroDave said:

and when the price drops so does the replacement cost but the retail price seems sticky that way around.

Price goes up - well our replacement cost is higher so we need to charge you more now
Price goes down - well our current inventory costs more so it needs to remain high until we replace it.

That's the business economics at the forecourt!

Except it won’t. As soon as the crude oil price drops, the media makes a big deal over it and then Tesco or Asda announce a 5ppl drop and grab a load of publicity. This forces everyone else to drop their price and they sell their stockpile bought at a higher price at a loss. Sure, they’ll make extra profit, but what do want? Communism, socialism?

[Opapayer]

vikingaero said:

Back in 2022 when diesel reached £2+ a litre, I refuelled the family Passat with diesel at 197ppl. I didn't use the car for 2-3 months and prices dropped to ~150ppl. It was my turn to drive on a caving road trip and when I got back home to the UK, I refuelled the car at 150ppl despite burning fuel that cost 197ppl. This meant I could only split the cost of the fuel at 150ppl....

I think after 5 years you should be a in a position to get over it. You’re an individual, macro-economic decisions aren’t based on an individual’s circumstances.

[QuattroDave]

Opapayer said:

Except it won t. As soon as the crude oil price drops, the media makes a big deal over it and then Tesco or Asda announce a 5ppl drop and grab a load of publicity. This forces everyone else to drop their price and they sell their stockpile bought at a higher price at a loss. Sure, they ll make extra profit, but what do want? Communism, socialism?

Except it will, I never said the price won't drop but they'll wait until the higher bought fuel depletes before dropping it which is the exact opposite of the justification they used to increase it in the first place. For context we're talking about a day or two held at higher prices as the average petrol station only holds 2-3 days fuel.

Certainly not going to get into a wider debate about how the world should be run but capitalism is hardly a shining beacon of success now is it

[vikingaero]

Opapayer said:

vikingaero said:

Back in 2022 when diesel reached £2+ a litre, I refuelled the family Passat with diesel at 197ppl. I didn't use the car for 2-3 months and prices dropped to ~150ppl. It was my turn to drive on a caving road trip and when I got back home to the UK, I refuelled the car at 150ppl despite burning fuel that cost 197ppl. This meant I could only split the cost of the fuel at 150ppl....

I think after 5 years you should be a in a position to get over it. You re an individual, macro-economic decisions aren t based on an individual s circumstances.

I have no issue with it and was merely illustrating something in relation to forecourt pricing and replacement cost.