Fuel price discussion thread (was ‘chaos’)

[SDK^]

You understand the actual cost of fuel is pretty small. The tax which is a percentage is what is causing the majority of all this. When EV's become the norm the government will tax it to high oblivion as well.

Remove fuel duty and the tax on that and you instantly wipe 60-70P off the price of petrol.

Isn't duty applied per litre, rather than a percentage?

Vat is a %, of course, but isn't the biggest tax component.

Exactly - Fuel Duty hasn't gone up for years, so this is not the reason for the fuel price increases.
Like you said VAT is a % but for that to increase the base wholesale cost also has to increase.

Petrol station managers are saying profits margins (already small) are being squeezed : Source : https://www.bbc.co.uk/news/business-61743734

This increase has to be from the rise in oil price.

Currency value also has an impact - the pound has recently dropped against the dollar.

Fuel price breakdown : @adam cool dude - Pretty clear the wholesale diesel cost makes up the largest %.

 

[SkodaMart]

Feels like the country is spiralling into oblivion. What with Ukraine and the B word.

The B words got nothing to do with it.
Sensationalist nonsense.

 

[Jono8]

Might just refuse to drive to work soon and demand i work from home if this continues. Hardly seems worth it when such a large amount is gone just from driving there.

Can't sack me as no one wants to work for us anyway.

 

[Jono8]

Exactly - Fuel Duty hasn't gone up for years, so this is not the reason for the fuel price increases.
Like you said VAT is a % but for that to increase the base wholesale cost also has to increase.

Petrol station managers are saying profits margins (already small) are being squeezed : Source : https://www.bbc.co.uk/news/business-61743734

This increase has to be from the rise in oil price.

Currency value also has an impact - the pound has recently dropped against the dollar.

Fuel price breakdown

This is why the economy is so completely broken.

The price has gone up due to speculation of there not being enough.....yet we have a forecourt saying that demand has DROPPED and it is taking them longer to sell the fuel they have.

 

[SDK^]

This is why the economy is so completely broken.

The price has gone up due to speculation of there not being enough.....yet we have a forecourt saying that demand has DROPPED and it is taking them longer to sell the fuel they have.

Unfortunately speculation is what drives the value of most shares and commodity values across the world.
: Real world example - Apple announces a QTR profit of $29 Billion but the share price drops because speculators predicted a profit of $35bn

In the case of oil - it's a global price so what happens on a UK forecourt is irrelevant

 

[Jono8]

Unfortunately speculation is what drives the value of most shares and commodity values across the world.
: Real world example - Apple announces a QTR profit of $29 Billion but the share price drops because speculators predicted a profit of $35bn

In the case of oil - it's a global price so what happens on a UK forecourt is irrelevant

I understand, bit that doesn't make it any less bonkers.

The global economy is ridiculous.

 

[jpaul]

The price has gone up due to speculation of there not being enough.....yet we have a forecourt saying that demand has DROPPED and it is taking them longer to sell the fuel they have.

what speculation ?

china etc post-covid have been buying it, russian oil is deprecated, there is less available, so - supply and demand, the price goes up.

that forecourt saying demand dropped, and they were taking longer to sell, were using that as an example of why their prices were lagging other forecourts.

 

[touch]

The B words got nothing to do with it.
Sensationalist nonsense.

That depends on which 'B' word he means.
"Boris" or "Brexit", either could fit.

 

[Richie]

The price has also increased because £ Sterling has tanked against USD recently and oil is bought in USD.

 

[200sols]

Its down 7% this year, the USD is strong against most g10 currencies recently, that happens in a worldwide downturn.

 

[lordrobs]

Ask them to take it back and treat it as a pool car then, and use it when you require it.

I may well do that. It is handy to have a larger car than the wife's Polo though and it wouldn't be a great time for us to be buying another car.

Really I just need a car that plays the engine capacity vs fuel economy game better. If it was the 1.5 TSI it wouldn't be an issue as I'd be getting an extra 3ppm.

 

[Journey]

I may well do that. It is handy to have a larger car than the wife's Polo though and it wouldn't be a great time for us to be buying another car.

Really I just need a car that plays the engine capacity vs fuel economy game better. If it was the 1.5 TSI it wouldn't be an issue as I'd be getting an extra 3ppm.

How much would you be saving on tax? Perhaps if you need a lager car then you could always rent/hire one when you need it with that offset? My old colleague handed his back and requested a pool vehicle as he was only using it twice a week for work, and they happily obliged, I think he was something like £190 a month better off. Gotta be worth doing some quick maths to see if it is feasible.

 

[Tinders]

I may well do that. It is handy to have a larger car than the wife's Polo though and it wouldn't be a great time for us to be buying another car.

Really I just need a car that plays the engine capacity vs fuel economy game better. If it was the 1.5 TSI it wouldn't be an issue as I'd be getting an extra 3ppm.

This is why i was wary of going for the VAG based PHEV'S. When not charged, the MPG isnt much better than the bigger engines PHEV's, and that 3 pence on the AFR does make a sizeable difference, even if your mileage is not that high

 

[chroniclard]

The B words got nothing to do with it.
Sensationalist nonsense.

It's got plenty to do with the state we are in.

 

[Hawk Tuah]

The B words got nothing to do with it.
Sensationalist nonsense.

If it wasn't for 'the b word', covid wouldn't have happened, the Russian's wouldn't have invaded and we'd all be enjoying a global utopia. Bloody 'B'.

Solar power + a pre-2016 (ie tax free) BEV is the way to go. No chance they'll be able to add 'tax per mile' to it.

 

[lordrobs]

How much would you be saving on tax? Perhaps if you need a lager car then you could always rent/hire one when you need it with that offset? My old colleague handed his back and requested a pool vehicle as he was only using it twice a week for work, and they happily obliged, I think he was something like £190 a month better off. Gotta be worth doing some quick maths to see if it is feasible.

£102 per month as I'm only in the basic rate tax bracket, which all things considered is about as cheap as it gets motoring wise. Even days out are tricky in the Polo as we have the buggy which takes up the whole boot.

I should be getting a company credit card again soon at which point I'll put forward that I put all fuel on that and pay back my personal mileage at the HMRC rate which is what our sales people always used to do.

 

[Blackjack Davy]

I’m in Ireland at the moment and I’ve noticed something weird with fuel prices here. In the UK there’s around a 15p a litre difference between petrol and diesel. Over here diesel is cheaper, seems to be around €2 a litre with petrol at €2.10 ish. I found that pretty odd to say the least.

Fortunately I don’t need to fill my car yet, hopefully I can make it back home on the same fill I left with.

Diesel used to be cheaper here too then govt slapped a whopping tax on it because its "bad for the environment" i.e. they can make more tax revenue off people who have no choice but to use it i.e. haulage it also means petrol can be proportionately lower for cars which are of course driven by voters.

 

[Dyson]

Diesel used to be cheaper here too then govt slapped a whopping tax on it because its "bad for the environment" i.e. they can make more tax revenue off people who have no choice but to use it i.e. haulage it also means petrol can be proportionately lower for cars which are of course driven by voters.

I'm sure a very high proportion of those voters use diesel - quick poll of the company car park puts diesel at around 75% of the guys that work here.

 

[andicole0]

I'm sure a very high proportion of those voters use diesel - quick poll of the company car park puts diesel at around 75% of the guys that work here.

HMG encouraged diesel powered car purchases by reducing fuel duty then raised it to 'catch people out'. A typical selfish move. I suspect most HMG decisions are based on friends and family advice not real science ‍

 

[Rilot]

I don't remember diesel ever being cheaper per litre than petrol in the UK.