Fuel Prices falling?

[GingerMagic]

Oh, does that mean when the oil price goes back up, the pump prices will keep falling for six months....

Not a feckin' chance matey..

£1.09 for a litre of your finest ESSO diseasel in Poole.

[scotty73]

Oh, does that mean when the oil price goes back up, the pump prices will keep falling for six months....

Kind of answers itself don't it.

[highlander]

Unfortunately this is actually true.

The company I am contracted to were exceptionally lucky - they managed to hedge their oil prices for the next year, just as the oil price was starting to drop - and then it plummetted. This means they are guaranteed the hedged price per barrel, despite the value of that oil being a lot lower.

If they hadn't, it would have been seriously bad news.

I imagine petrol stations buy oil at a set price for a contracted period. They pay high rates for the fuel, but then the wholesale price plummets - so they've paid a lot more for the fuel than it's now worth. If they lower the pump price far enough to reflect the actual price of the fuel, they'll make a loss on every litre.

The government should ideally be reducing the fuel duty - the petrol stations would then be able to either charge just as much for the fuel as they are now, and make a lot more profit, or would be able to reduce the pump price a bit, take the price below £1.00 per litre, and still make a bit of profit.

But that's not going to happen. I mean, look at how long it's taking them to put together a rescue tax break for North Sea exploration - people's livelihoods in this sector now depend on the oil price recovering (not likely given how determined the Saudis are to make their oil more attractive to the US market than US-produced oil is). Big energy firms are now pulling out of North Sea developments, jobs are being cut. It's not profitable for them to continue production in some wells purely because the tax rates are so high. Cut the taxes and investment will return - otherwise these guys will spend their money developing oil fields in other countries.

Government in the UK can be so damn short-sighted sometimes it's just depressing.

[Doggy]

I have a deal of sympathy for your point of view Graeme, but the trouble is taxes have to be raised from somewhere - if tax on fuel goes down, tax on something else has to go up or spending has to be cut. Governments of whatever political persuasion tax whatever they think we'll complain about least.

I've noticed some garage prices creeping upwards 1 or 2p a litre in the last week, but my local Asda has unleaded unchanged at 103.7, diesel has dropped 1p to 109.7.

[PeterN]

My heating oil has gone up about 3p in the last couple of days, I'm hoping that its just the cold weather and am gambling on it coming down again before I fill my tank up.

Peter

[Welly]

Buggered if I'm paying top dollar for out of date petrol, I'm taking the bus from now on......

[Welly]

Super Unleaded = 111.9

Did anyone else hear the rumblings that whilst fuel prices dropped the sales of it increased and brought in more Tax revenue. Or something.

[Doggy]

Looks to me like we're on the traditional pricing sequence - up like a rocket, down like a feather.

Not only are prices increasing now, but the gap between petrol and diesel has increased too - I saw a 9p/litre difference at one garage last week.

[Welly]

My local Tesco had a 10p/ltr difference there.

[Rolebama]

Successive Govts have failed to realize that when the price of anything goes down, sales go up. They quite happily tell us we are in a recession, then promptly tax everything to the hilt. It was calculated a few years ago that approx 75% of our incomes goes in taxes, and with VAT on fuel duty, it is not surprising.

[Doggy]

Fortunately my fuel consumption has improved with the warmer weather to compensate for the price hikes to some extent.
In the coldest bit of the winter it as down to 46 or so, but I'm relieved to see it bettering 50 mpg again now.

[Welly]

Super Unleaded = 116.90 today.

Prices are on the up

[benczuk]

standard diesel 119.9 here

[steve_earwig]

The prices have gone back up here again too, petrochemical companies taking the piss I guess. So much for everyone who rushed out and bought a gas guzzler...

[stuartkeith]

Back down to 99p a litre down here £30 gave me half a tank!