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Price of Petrol

legalbird12 · 2008-12-11 16:34:42

Can somebody please explain to me this... The price of oil has fallen below $50 a barrell compared to $150 a few weeks ago. WHY is the price at the pumps not reflecting this? This has been annoying me for a while. Thankyou for any reply.

11-12-2008 5:34pm

#1

legalbird12

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Can somebody please explain to me this...

The price of oil has fallen below $50 a barrell compared to $150 a few weeks ago. WHY is the price at the pumps not reflecting this?

This has been annoying me for a while.

Thankyou for any reply.

0

Comments

#2 11-12-2008 5:36pm

L1011

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It is reflecting it, almost exactly. Much of the price of fuel is duty. Last time oil was this price, fuel was much the same price.

http://boards.ie/vbulletin/showpost.php?p=58230605&postcount=26 explains it well, Hammertime knows his stuff on this probably more than any other poster.

http://www.ipia.ie/Issues/upload/What_determines_pump_prices.pdf is also a good document

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#3 11-12-2008 7:09pm

ardmacha

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And of course tax was increased by 8c in the budget so the price would be this much higher than the last time oil was this price.

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#4 11-12-2008 7:10pm

macnab

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There is another thread running on this at the moment.

Duty on petrol is 50.88c per litre, VAT at 21.5% is charged on top of that so duty actually costs 61.82c.
Duty on diesel is 36.81c per litre, VAT at 21.5% is charged on top of that so duty actually costs 44.72c.

So a breakdown for unleaded is:

27.46c = net cost per litre
50.88c = Government Duty
16.84c = VAT on (net + Duty)
95.18c = typically what a petrol station is paying for a litre of Unleaded.

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