Fuel up/down again

I'd actually rather it had stayed at 104 because I need to fill up tomorrow and I just know all the chavs will be queuing round the block and it'll take me 10x as long to fill up. :rolleyes:
 
Tesco have dropped the price of unleaded to 99.9p everywhere.

Let's see if we get sustained prices below £1.
 
Clarkey said:
How long before the government decide they aren't making enough off fuel any more and pump the duty up a bit?
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This is the best time in ages to increase duty!

Remember the duty freeze at 57.95p since 2011 has been a real terms cut. Also the VAT take is significantly down, not to mention cars getting more efficient so using less fuel. Personally I'd hike duty at least 4p (which just replaces the lost VAT as prices have come down) but really there needs to be an inflation correction too - so call it 5p.
 
muon said:
Tesco have dropped the price of unleaded to 99.9p everywhere.

Let's see if we get sustained prices below £1.
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M99 for 104.9 :D I wonder how long the local Shell will keep VPower at 117.9? Could be worse, the nearest BP is still 114.9 for 95 and >130 for Ultimate haha.
 
hartgeh3 said:
until spring/summer it'll be up again
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Depends. Oil price forecasts seem to be towards the current price range.

Iran is going to start exporting loads more oil and the demand isn't there. So prices will have to go down to create that demand.
 
muon said:
So prices will have to go down to create that demand.
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Not quite, demand doesn't change that much based on the price. You won't start driving more because it's 99p not 110p, will you?

Seems to me it's more to do with the distributors having more supply than they can shift. Since it costs money to stockpile anything and it's a sellers market they'll be able to shift the same amount of fuel as ever but have their pick of the providers, so they'll be able to push prices down.

Whether they pass much of that on to consumers is another thing.
 
joeyjojo said:
Not quite, demand doesn't change that much based on the price. You won't start driving more because it's 99p not 110p, will you?
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Remember most oil demand isn't driven by the automotive industry.

Seems to me it's more to do with the distributors having more supply than they can shift. Since it costs money to stockpile anything and it's a sellers market they'll be able to shift the same amount of fuel as ever but have their pick of the providers, so they'll be able to push prices down.

Whether they pass much of that on to consumers is another thing.
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If supply creates a glut and demand doesn't increase, then the crude oil price is driven to zero since as you say stockpiling would be suicide where prices will fall down to zero.

But demand will increase as the price is driven down and supply should eventually start to decrease with high cost suppliers as the price decreases further.
 
One **** taking Esso near me is charging 110.9 petrol and 113.9 diesel and yet people are filling up there, everywhere else in the town is 105.9ish
 
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