Soldato
- Joined
- 9 Jan 2008
- Posts
- 6,494
- Location
- London/Camberley
Fuel up/down again
- Thread starter [TW]Fox
- Start date
Because the petrol coming out of the pumps today is the $100+ oil from months ago, if the fuel companies slash prices too much then the will be mass "get it while it's cheap" buying and they will sell massive amounts at a loss (they are probably selling at a loss ATM in the hope of recovering the money via profit from the cheap oil).
The tories froze fuel duty when they got in and kept it froze, under labour prices would currently be on their way down from £1.50+!
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Yeah! screw him and the thousands of soon to be unemployed!
They are mostly contractors who take the uncertainty in return for large daily rates. If they were guaranteed a job without any gaps between contracts they would be paid rather less.
.
They are quick to push the price back up when the oil price rises, despite having purchased their fuel at the low price...
[TW]Fox;27368454 said:
What about the people who lose their jobs as a knock on effect though, cheap oil means that experimental stuff like fracking becomes less viable, and stuff like wind/solar which was barely viable in the first place looks even worse. These industries will be seeing reduced interest and be making cutbacks which will result in redundancies.
On the flipside, the fall in oil prices means that small airlines and flying clubs struggling to stay afloat will get a reprieve, it's come too late for many though
I find it amazing how few people can actually grasp how petrol prices are arrived at, and are quick to blame the oil companies or current governments.
For a start, the current Conservative government, as already mentioned, have actually frozen fuel duty (and I believe at one point reduced it), compared to the automatic fuel duty escalator employed by the previous Labour government. So in fact, the current government tax take on fuel is significantly less than it "could" have been under the previous governments plans. Thank you Mr. Osbourne.
Secondly, again, as mentioned earlier, the fuel in the pumps wasn't extracted out the ground yesterday. It was extracted many weeks ago, and has since been processed. Hence the "slightly" higher rate we pay today, although it is still substantially less than we were paying 6 months ago.
And low Oil prices are far from a good thing anyway. Low oil prices, whilst helping with day to day motoring costs, actually costs the country a LOT. If the oil companies don't make profits, which they aren't from North Sea oil just now, then there is nothing to tax. If they are not making profits, there is no further investment, meaning no new jobs. It also means they have to start scaling back operations, which means a LOT of reasonably well off people start losing their jobs. This means, again, less tax income for the government. Moreover, these people may well start claiming benefits.
But it's not just the oil & gas workers who are hit here. If they have less money, then they spend less, obviously. That means house renovations and such like are at least postponed, if not cancelled. And that hits joiners, plumbers, sparkies, builders etc... Then there are even more people with less money to spend. Which hits all parts of the economy. Less profits all round, so less taxable income for the government.
Sure, it's nice to fill my motor for £65 or so. But at what cost? Surely an £80 tank is a better compromise, allowing many people to keep their livelihoods.
For a start, the current Conservative government, as already mentioned, have actually frozen fuel duty (and I believe at one point reduced it), compared to the automatic fuel duty escalator employed by the previous Labour government. So in fact, the current government tax take on fuel is significantly less than it "could" have been under the previous governments plans. Thank you Mr. Osbourne.
Secondly, again, as mentioned earlier, the fuel in the pumps wasn't extracted out the ground yesterday. It was extracted many weeks ago, and has since been processed. Hence the "slightly" higher rate we pay today, although it is still substantially less than we were paying 6 months ago.
And low Oil prices are far from a good thing anyway. Low oil prices, whilst helping with day to day motoring costs, actually costs the country a LOT. If the oil companies don't make profits, which they aren't from North Sea oil just now, then there is nothing to tax. If they are not making profits, there is no further investment, meaning no new jobs. It also means they have to start scaling back operations, which means a LOT of reasonably well off people start losing their jobs. This means, again, less tax income for the government. Moreover, these people may well start claiming benefits.
But it's not just the oil & gas workers who are hit here. If they have less money, then they spend less, obviously. That means house renovations and such like are at least postponed, if not cancelled. And that hits joiners, plumbers, sparkies, builders etc... Then there are even more people with less money to spend. Which hits all parts of the economy. Less profits all round, so less taxable income for the government.
Sure, it's nice to fill my motor for £65 or so. But at what cost? Surely an £80 tank is a better compromise, allowing many people to keep their livelihoods.
It's almost like they are a business not a charity.
it was a joke..
Ahh sorry, it doesn't come across that way.
What about the people who lose their jobs as a knock on effect though, cheap oil means that experimental stuff like fracking becomes less viable, and stuff like wind/solar which was barely viable in the first place looks even worse. These industries will be seeing reduced interest and be making cutbacks which will result in redundancies.
On the flipside, the fall in oil prices means that small airlines and flying clubs struggling to stay afloat will get a reprieve, it's come too late for many though
Who uses oil as national grid supply. It accounts for less than 1.5% in the Uk and shrinking.
So will make sod all difference to solar/wind etc.
And country also want energy security so are unlikely to give up on cracking regardless of cost.
I tried to make it as irrational as I could, short of involving martians
I tried to make it as irrational as I could, short of involving martians
Goddamn martians, coming over here claiming benefits and using our fuel!
You can use oil for heating/cooking, if it's cheaper than electric then less people will be using electricity, less electricity demand less demand on the grid.
Last edited:
Because they never purchase fuel at high prices or at any other time. Never. They keep vast stocks, enough to supply for years worth of petrol, and only buy when the price dips below $60 a barrel. Then they buy loads.
If you don't even know its called fracking not cracking then I don't think you understand enough to comment.
- Joined
- 14 Jun 2004
- Posts
- 17,510
- Location
- Newcastle U/T
[TW]Fox;27369477 said:
How dare auto correct defy his fat fingers