Fuel up/down again

Janesy B · 3 Feb 2011 at 15:48

Dutch Guy said:
Yes, but even so how much has the duty increased, not too much I think, certainly not enough to explain the current price.

Don't forget VAT has gone up by 2.5% as well.

Simon · 3 Feb 2011 at 15:54

There is a time lag from when the oil is bought to when it sold as fuel.

Tute · 3 Feb 2011 at 15:59

I actually wouldn't mind so much if the tax on fuel was reduced back to a lower level as the debt level is lowered, but what honestly is the chance of that happening?

alx · 3 Feb 2011 at 16:20

Dutch Guy said:
I just get the feeling that oil companies slowly raise the price of petrol faster than the price of oil is rising.
Petrol prices are closing in on record highs but the oil price isn't close to reaching a record so what has caused the increse in price other than oil companies making more profit?

That completely depends on whether they have any downstream processing.

Upstream is where most of the money is made (ie taking it out of the ground), it's then sold/piped/shipped to refineries which process it (downstream).

Even within companies such a BP, Shell, Exxon etc which do both, the upstream and downstream parts of their business are almost independent in a business sense, and they also don't necessarily buy their own oil but normally what's cheap/works. Refineries in the UK are owned by a variety of companies (mainly due to monoply laws, don't think you can own more than 2).

So it's not really quite as simple as you make out.

Duke · 21 Feb 2011 at 10:51

Going up up up

http://www.bbc.co.uk/news/business-12522291

Tesla · 21 Feb 2011 at 10:55

I've read on the forum several times now that diesel is a by-product (as such) of manufacturing petrol. So if diesel demand increases and petrol remains the same or decreases does this mean there is a surplus of petrol? Hence why diesel prices overtook those of petrol a few years ago (I swear diesel used to be a cheaper per litre fuel than petrol?).

Secondly, can you manufacture (refine?) petrol without creating diesel?

Housey · 21 Feb 2011 at 10:58

I paid £1.43 for Super Unleaded at Norton Caines services on the toll road last week, most expensive petrol I've ever seen.

ubersonic · 21 Feb 2011 at 11:03

Housey said:
I paid £1.43 for Super Unleaded at Norton Caines services on the toll road last week, most expensive petrol I've ever seen.

So the most expensive petrol was from a station that you have to pay to get to? capitalism ***

Morbius · 21 Feb 2011 at 11:29

Simon said:
There is a time lag from when the oil is bought to when it sold as fuel.

Absolutely. However, whenever the price of crude goes up, the price at the pumps immediately shoots up. Whenever the price of crude goes down, there's a significant delay before the price at the pumps goes down.

Firestar_3x · 21 Feb 2011 at 12:09

136.9 seems to be the fixed price for V-power around my area, how long till its 140?

Ivyforce · 21 Feb 2011 at 13:17

Tesla said:
I've read on the forum several times now that diesel is a by-product (as such) of manufacturing petrol. So if diesel demand increases and petrol remains the same or decreases does this mean there is a surplus of petrol? Hence why diesel prices overtook those of petrol a few years ago (I swear diesel used to be a cheaper per litre fuel than petrol?).

Secondly, can you manufacture (refine?) petrol without creating diesel?

You are partially correct in this, What happens is that Diesel price goes up due to demand for heating oil and the unleaded price actually goes down, this is normal and happens every year, The actual difference recently is 7-8ppl on the market yet the polesign will only have 4-5ppl difference, the retailer will be making 1-2ppl on Diesel while making 4-5 on unleaded.

The way fuel is made you cant choose what you get, you get a set amount from the crude, so to make more diesel you will make more unleaded also, so you get demand for Diesel and Excess of Unleaded.

Freefaller · 21 Feb 2011 at 13:17

On a motorway service station I've seen diesel at 137.9!!!

Westyfield2 · 21 Feb 2011 at 13:42

One interesting statistic I heard from someone in the industry, BP etal make more money per litre on the Coffee in the petrol stations than the petrol!

Yet joe public blames the oil companies for the prices not the government...

neil3k · 21 Feb 2011 at 13:51

I've just seen bog standard unleaded at Tesco for 130.9

Expense

Freefaller · 21 Feb 2011 at 13:54

My local Sainsburys had diesel at 129.9 :cool:

I'm so glad I get paid my mileage at work!

Rich1988 · 21 Feb 2011 at 14:02

a lot of people who get paid mileage are going to suffer as a consequence of the rises as well, Im ok at the moment but after I do 10,000 miles it goes down to 25p a mile coupled with the increase in fuel a lot of people will barely break even

Gamefreak501 · 21 Feb 2011 at 14:07

I've covered roughly 365 miles so far in my little Oil-burning Corsa, but it's getting to the 15L mark, so I know I'll be due a fill up soon.

I don't get any of my fuel covered (I guess it's not that kind of Company!) so it chips away at my take home pay.

Firestar_3x · 21 Feb 2011 at 14:09

Does mean driving around in an tar fueled corsa though, think i'd rather take the hit and drive around in something less hatefull.

Gamefreak501 · 21 Feb 2011 at 14:11

Firestar_3x said:
Does mean driving around in an tar fueled corsa though, think i'd rather take the hit and drive around in something less hatefull.

Hehe, I'm *definitely* going to be buying a much better Car when this one kicks the bucket, someone suggested an Alfa Romeo 147 on these Forums, but time wasn't on my side, so I had to get the best possible example for the least expenditure - and the Corsa ticked all the boxes, came with a full Mot, 6 months tax and very good bodywork and mechanics.

It's not that bad a Car, but it definitely is showing it's age now!

Cosimo · 21 Feb 2011 at 14:12

Firestar_3x said:
136.9 seems to be the fixed price for V-power around my area, how long till its 140?

It was £1.409 a couple of weeks ago.