Fuel up/down again

I was gunna fill up Dec 23 but couldn't be bothered, price was 110.?. Finally did fill up 2nd Jan at the price of 107.?. I was between red and the first white marker and it cost £34 for a full tank.
 
On the radio this morning a Sainsburys exec was saying customers could feasibly see fuel drop to less than £1 a litre soon. Maybe 82ppl might see the light of day once again :p
 
Atom said:
Yes
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Figured as much.

The reason for 2p here and 2p there is that oil has slid gradually since September - it didn't halve in price overnight. At the same time as the oil price fell, the value of sterling against the dollar, the currency in which crude is priced, also fell which mitigated some of the benefits of the lower crude costs.

It hit almost $1.7 to £1 in August and is now barely over $1.5 to £1.

As a result, the oil price fall in sterling terms was lower than that on dollar terms.

Additionally, do not forget that 58p of every litre of fuel is excise duty and on top of the final price 20% VAT is added. Even if crude oil was free of charge, fuel would still cost about 74p a litre after duty, VAT and retailing/refining costs.

So that is why we've had 2p here and 2p there and thats why it shouldn't be 90p a litre.
 
Rybo89 said:
Will this low fuel prices last long? Guessing it will shoot back up sometime over the year?
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The crude prices will bounce back a bit at some point but I can't see them getting anywhere near the $100 a barrel they were not long ago, at least in the short-term.

What will happen to forecourt fuel prices is another matter. I'm starting to wonder how long it'll be before the government seizes the opportunity to up duty and make a bit of extra cash.
 
Bought 5000 litres of diesel (work) for 90ppl, and 5000 litres is hardly bargaining power in the bulk market. I'm guessing crude will hit €35 a barrel before its slow uphill climb.
 
One of the petrol stations here is the last one on a major freeway exit for about 50-60 miles and is resolutely ignoring this oil price nonsense and sticking to $4.79 a gallon. The station on the other side is engaged in a price war though and recently cut to just $3.99 - dat profit margin tho :p

Fortunately the savvy amongst us will go the extra 1/2 mile and fill up for almost $2 a gallon less :p

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