Prices of Petrol

Ihaveanopinion

So the price of crude oil is about half of what it was at its peak

And there is a lag between the drop in crude prices and changes at the petrol pump. I understand that.

What I don't understand is why petrol prices dropped to about €1/L and are slowly but steadily rising so that now they are €1.15/L.

Whats going on???

niceirishfella

Ihaveanopinion wrote: »

Whats going on???

well, like always they have the consumer by the balls.
:eek:

Hal1

Check pumps.ie if you want a better price. Its updated daily. I've nothing to do with them btw.

Ihaveanopinion

I appreciate that Hal1 The issue really is that the price of petrol should be much further down and certainly should not be climbing!

Gregor Samsa

Ihaveanopinion wrote: »

What I don't understand is why petrol prices dropped to about €1/L and are slowly but steadily rising so that now they are €1.15/L.

Whats going on???

Crude oil has been rising since February.

http://www.oil-price.net/dashboard.php

Crude prices are only one factor in the price we pay at the pump (The bulk of the price of petrol at the pumps is duty and VAT) there's processing, transport etc to be taken into account as well.

HashSlinging

This is the knock on effect of the opec cuts in production, they want to stabilise crude at around 70$ a barrel.

Looks like things will keep going up for the next month at least.. IMO

Alun

Add into the equation that the 'price' of crude we see on the news is a spot price only on that day and doesn't really represent what Shell, Esso etc. actually pay for it. Big oil companies will have all kinds of complicated futures contracts in place to try and protect themselves from price and currency fluctuations. Plus as others have said, the price of the end product is dependant on many other factors (including market manipulation by OPEC, seasonal fluctuations in demand and available refinery capacity) than merely the price of the raw ingredient. It's very naive to think that, say, a 10% decrease or increase in crude oil prices will result in a corresponding change in petrol or diesel prices at the pumps.

mike65

Not sure, ie this is guestimate but I reckon the crude price is only 25-30% of the price we pay at the pump.

DanGerMus

mike65 wrote: »

Not sure, ie this is guestimate but I reckon the crude price is only 25-30% of the price we pay at the pump.

Explained here, before the government gets it's greedy mits on it petrol is 33.6c and diesel is 32.79.

Matt Simis

Is E85 the same price at all Maxol garages that sell it?

Ihaveanopinion

I understand that there isnt a direct link between crude and pump prices - but I would have expected a more significant price drop.

I remember the relevent industry people talking on the radio about a lag because of advance buying/buying in bulk and so on. Thought that would have had a greater effect - rather than the gradual increase we are seeing at the pump

Heroditas

Ihaveanopinion wrote: »

I understand that there isnt a direct link between crude and pump prices - but I would have expected a more significant price drop.

I remember the relevent industry people talking on the radio about a lag because of advance buying/buying in bulk and so on. Thought that would have had a greater effect - rather than the gradual increase we are seeing at the pump

About 70c goes to the government in duty and VAT.
Regarding the bulk/spot buying - Hammertime would be able to expalin this far better.

I was in South Africa last week and the price per litre of petrol was the equivalent of 70c per litre. There was an article in a newspaper detailing the full breakdown of a litre of petrol and their government taxes amounted to approximately 30% of the price per litre. Sasol supply almost all the petrol to South Africa and transportation costs are far less than here but when you take the taxes away from the price of a litre of petrol there and compare it to a litre here minus the government levies, there's only 1 or 2c difference in the price per litre.
We can thank our govt. for the high petrol prices. they take the lion's share of it.

Yakuza

And guess what, they're going to slap on another "carbon" tax on it in the next budget to punish all the evil planetkillers who drive 50+km a day to get to work (that's if this government and it's green puppets survives the year).

They probably won't be satisfied until we're all crawling on our hands and knees to work over broken glass.

(spot the inivisible sarcasm tags:))

Heroditas

Yakuza wrote: »

And guess what, they're going to slap on another "carbon" tax on it in the next budget to punish all the evil planetkillers who drive 50+km a day to get to work (that's if this government and it's green puppets survives the year).

They probably won't be satisfied until we're all crawling on our hands and knees to work over broken glass.

(spot the inivisible sarcasm tags:))

Ah but we can all buy bikes and claim the tax back on the purchase of them. :rolleyes:

Seth Brundle

I was going to mention something about the exchange rates but looking at this there's no point!

Bee

Yakuza wrote: »

And guess what, they're going to slap on another "carbon" tax on it in the next budget to punish all the evil planetkillers who drive 50+km a day to get to work (that's if this government and it's green puppets survives the year).

They probably won't be satisfied until we're all crawling on our hands and knees to work over broken glass.

(spot the inivisible sarcasm tags:))

Only if you don't vote the Green a$$wipes for Fianna Failure out of office
Let the turds know what you think of their rip off "Carbon" taxes in the local elections

Yakuza

Bee wrote: »

Only if you don't vote the Green a$$wipes for Fianna Failure out of office
Let the turds know what you think of their rip off "Carbon" taxes in the local elections

I'd imagine no matter how bad a pasting they get at the locals, they'll brazen it out as long as they can. I'm reminded of an urban legend about some bloke who takes an o/d of viagra, and the old 'fella' was pointing to high noon for several days on the trot. Eventually, he went to the doc and (due to the permanent damage caused to the blood vessels) the doc told him to enjoy that erection, as it would be his last. A fitting metaphor, perhaps?