Soldato
- Joined
- 15 Oct 2003
- Posts
- 16,345
- Location
- Chengdu
What Shell station you using? Altens?
Asda, Morrisons... We Salute You!
- Thread starter Phil W
- Start date
What Shell station you using? Altens?
88.9p at shell, will find out what v-power is this evening, imagine it should be 96.9p
sorry again firestar
95.9 if regular is 88.9 - it's 7p/litre more usually.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Cool they just list it anyway. Blimey, sub $40 
Problem is there is a limit as to how low our petrol can go. The duty is now 52.35p a litre and then there is 15% VAT added to the duty *and* the product added together.
To get, for exmaple, 77.9p a litre fuel the cost of a litre of refined petrol, the cost of the distribution, and the retailers profit must come to 15p and not a penny more.
So much of the cost of fuel is tax.
Problem is there is a limit as to how low our petrol can go. The duty is now 52.35p a litre and then there is 15% VAT added to the duty *and* the product added together.
To get, for exmaple, 77.9p a litre fuel the cost of a litre of refined petrol, the cost of the distribution, and the retailers profit must come to 15p and not a penny more.
So much of the cost of fuel is tax.
Using Duke's link above, are low 80s possible if Merrill Lynch are correct? :
"Analysts at Merrill Lynch have said that prices may fall below $25 a barrel before they recover."
http://news.bbc.co.uk/1/hi/business/7766445.stm
"Analysts at Merrill Lynch have said that prices may fall below $25 a barrel before they recover."
http://news.bbc.co.uk/1/hi/business/7766445.stm
From the figures I've found, when unleaded was 115p a litre (And oil was $130 a barrel) the product itself was 37.35p, duty was 50.35p and 10.17p went to the retailer/delivery costs. The rest was VAT.
Now, of that product, it's not all going to be crude. I've no idea how much is but we'll estimate that 30p of it was raw crude. This is probably on the high side.
Now, with fuel at say 91p a litre and oil at $50 (We've only recently crashed right down to 40) that means we have an ex-vat price of 79p a litre, an ex-duty price of 26.65, remove the retailer/delivery cost of 10p and we've got 16.65. I don't know what proportion of the product is crude - probably not all of it, but even if the ENTIRE product was crude, oil dropping by 50% to $25 would reduce the product by 8p.
This should in theory give low 80's prices but only if most of the product is accounted for by crude prices which frankly I don't think it is. I think low 80's is a best case scenario - there is simply not enough pence to come off simply through oil price decreases. We are back where we were 3-4 years ago when petrol was expensive (Remember guys, petrol still IS expensive) because we are paying exceptionally high levels of tax on it.
Now, of that product, it's not all going to be crude. I've no idea how much is but we'll estimate that 30p of it was raw crude. This is probably on the high side.
Now, with fuel at say 91p a litre and oil at $50 (We've only recently crashed right down to 40) that means we have an ex-vat price of 79p a litre, an ex-duty price of 26.65, remove the retailer/delivery cost of 10p and we've got 16.65. I don't know what proportion of the product is crude - probably not all of it, but even if the ENTIRE product was crude, oil dropping by 50% to $25 would reduce the product by 8p.
This should in theory give low 80's prices but only if most of the product is accounted for by crude prices which frankly I don't think it is. I think low 80's is a best case scenario - there is simply not enough pence to come off simply through oil price decreases. We are back where we were 3-4 years ago when petrol was expensive (Remember guys, petrol still IS expensive) because we are paying exceptionally high levels of tax on it.
[TW]Fox;13031339 said:
Less. 1 litre of crude will make many different products, the price you can these vary massively though. It is possible to make 1 litre of crude into almost all petrol however the cost of the processing is massive. Refinaries literally have millions of combination of setups/parameters to adjust the processing.
This also needs to be geared for the type of crude the refinary is inputting and of course some crudes are better suited for gasoline than others:
Venezuelan crude yields little gasoline (about 5%),
whereas Texas or Arabian crude yields about 30% gasoline.
Refining margins for Q308 were $8/bbl. So not massive really, however they can get 10-12% more for the same quantity (in tonnes) of diesel compared to gasoline.
In essence, the answer is not simple
Last edited:
What does that work out at ppb? Nice to see Opec were insisting that prices have to be at around $80-85 per barrel to be "fair" and ensure the producing countries get a fair deal out of it. Strange that, I was under the impression most of the profit went to a privileged few rather than being distributed liberally? Nigeria being a case in point....
We could see around 80-82p a litre for unleaded if oil prices drop to $25 a barrel.
