Oil Prices drop below $70 but not at the pumps why?

Bullseye1

Why are the petrol stations not passing on the drop in oil prices? They are quick enough to rise the price when oil heads upwards. :rolleyes:

jozi

I can never understand this either

Poly

Because of the stupid,fcukwhit greens:mad:

gerrymadden1

Blame those Green Party nuts and their "carbon" tax ... they've systematically crucified the motorist, the elderly and the ordinary working man with their clumsily disguised taxes since they joined up with Fine Fail to get their hands on power.

So far petrol, diesel, home heating oil etc. Soon, they're going after our water.

Bring on the next general election!!!

You can rest assure that if the price of a barrel went up tomorrow the price at the pumps would go up straight away.

Bullseye1

Its gone down almost $15 a barrell in the last couple of months. It suits the goverment for VAT and Duty. But this is crazy.

P.C.

Blame all the greedy petrol stations. :rolleyes:

They all want new BMW's. :rolleyes:

Do a little research into the how the price of fuel is made up, and what influences it.
You will be supprised.

The price of a barrel of oil (in Dollars) has a small impact on the price of petrol on a forecourt in Ireland.

Eric Cartman

the doller has strengthened and the distributers are keeping the price up as the dollar may get stronger if the world hears of another greece situation with debts, oil at $70 dollars a barrell is the same price as oil at $80 a year ago because of th dollar strength

Euro_Kraut

Oil is sold in Dollars. The Dollar has gained hugely on the euro in recent weeks. Therefore the price of Oil in Euros has remained fairly stagnant. It should have came down a bit, but not be the full percentage reduction in dollar prices.

For those who blame the Greens/FF. You may need to consider that the carbon levy was introduced before the recent drop in the price of crude oil. Therefore that can not explain the current non-reduction in pump prices.

mink_man

only way to beat it is if you drive a diesel put a shot of green in it....

Bullseye1

The euro went back up to $1.25 tonight. Even when the Euro gained on the dollar the price difference wasn't passed onto the public.

Keith186

mink_man wrote: »

only way to beat it is if you drive a diesel put a shot of green in it....

The irony in that for the Greens! Haha

Their taxes will drive more people to do that because of the excessive cost of fuel

Bullseye1

I would expect the Euro to rally even higher on the Germans voting yes to the €760 billion package tomorrow.

Bullseye1

Yep I think I'll have to swap over to disel.:mad:

Given the times we now find ourselves in the prices should be coming down in reflection to the price of a barrel, but sure it's Ireland, the land of we'll make as much money as we can and sod the general public and struggling businesses.

Bullseye1

Have the media even picked up on this?

Bullseye1

Bullseye1 wrote: »

Have the media even picked up on this?

It's not news worthy enough for media here.

Bullseye1

Energy costs is a big story especially with the bad news on the jobs front this week. Petrol and diesel costs form part of the energy costs. It should be newsworthy.

squod

People aren't shopping around. Fed up having to put a fiver in the tank just to go fill up where it's cheaper.

Bullseye1

For those interested its €1.31 in both Rathnew and Gregorys Garage in Newcastle. Its the cheapest I have seen.

ShadowHearth

Well i could be wrong, but i thoguth that major part of price takes goverment taxes.

So basicly goverment will just swap that drop in price for anather carbon tax and add up a few cents to make them happy?

mysons

Greedy irish merchants,if you read back as far as the famine, they had fcuked the people then and they are fcuking the people now,does not matter if its fuel,food or goods,they will screw you because they can and are allowed to get away with it.

Eric Cartman

they can exploit it, petrol and diesel isnt somethign we can just stop using, so they have our nads in a vice, greedy retailers, the awful green party, and a strong doller hate the irish public

ShadowHearth

Eric Cartman wrote: »

they can exploit it, petrol and diesel isnt somethign we can just stop using, so they have our nads in a vice, greedy retailers, the awful green party, and a strong doller hate the irish public

those racists....

pat58

The goverment takes 14 euro out of ever 20 euro spent :eek: Which is ridiclous , when petrol hit a euro every one gave out stink now its at 1.31 no one says a thing,

Eric Cartman

Eric Cartman wrote: »

the awful green party

Awful and useless, that's alright them sticking a carbon tax on fuel and saying it's for the "good of the enviroment" but what alternative fuel and transport can we use, and don't say current electric cars cause thats just not a feasible option at present.

It's all bloody greed.

Might as well get used to high prices.

When the world economy turns around the price of oil will hit the roof. I'd imagine in 10 years it will be extremely expensive to run a car, far more so than today.

ceduffy

is it the government?

L1011

Bullseye1 wrote: »

Have the media even picked up on this?

Picked up on WHAT?

There is no major price reduction to pass on. A huge % of what you pay at the pumps goes to the state in duty, VAT and NORA levies. A relatively fixed amount is overheads and not actually all that much of it is related to the price of oil. Which has only dropped a tiny amount in € prices.

The papers here do love non-stories but this isn't even a non-story. Just people with no idea of the factors that cause the price convinced they're being shafted.

billybigunz

The amount of people who are completely ignorant about this astounds me.

You don't crude oil into your car and pay in dollars.

billybigunz

billybigunz wrote: »

The amount of people who are completely ignorant about this astounds me.

You don't crude oil into your car and pay in dollars.

oh dear

http://skepticalteacher.files.wordpress.com/2009/10/facepalm.jpg

billybigunz

rarnes1 wrote: »

oh dear

http://skepticalteacher.files.wordpress.com/2009/10/facepalm.jpg

Maybe try and use words instead of tired memes. I have no idea what you are on about.

Eric Cartman

billybigunz wrote: »

The amount of people who are completely ignorant about this astounds me.

You don't crude oil into your car and pay in dollars.

ehhh what ? if your trying to say that crude oil has to be refined to make petrol and diesel and plastics and that it is sold in dollars then yes a lot of people do realise that

and what happens when you want to trade oil in euro, just ask iraq

billybigunz

rarnes1 wrote: »

It's all bloody greed.

Yeah thats it. Economists should just retire now as you've explained it all in one simple statement.

billybigunz

Eric Cartman wrote: »

it is sold in dollars then yes a lot of people do realise that

The majority of posters here don't.

billybigunz

billybigunz wrote: »

Yeah thats it. Economists should just retire now as you've explained it all in one simple statement.

or listen to you eh?

billybigunz wrote: »

The majority of posters here don't.

I think most do. If they don't they are pretty stupid.

Guy:Incognito

pat58 wrote: »

The goverment takes 14 euro out of ever 20 euro spent :eek: Which is ridiclous , when petrol hit a euro every one gave out stink now its at 1.31 no one says a thing,

Seeing as everyone is so quick to point out how great the UK is, their petrol is dearer than ours so wat about a "cheers FF/Greens" for being so generous and charging less tax than the uk.:)

ceduffy

ceduffy wrote: »

is it the government?

It's all down to government, you only have to look at the take they get out of it, for every €20 that you the motorist puts in their tank, our government takes €14.

Have a look at this to see a breakdown of who gets what:

http://www.ipia.ie/Issues/upload/What_determines_pump_prices.pdf

Figures based on findings done in March of this year:

Before Tax

Petrol - 49 cents
Diesel - 51 cents

After Tax

Petrol - 128 cents
Diesel - 118 cents

In the last two years we've seen oil at $148 (€119) a barrel and at $33 (€26) a barrel, currently it's at $68 (€55) a barrel. Many garages today are now charging more than the €1.33 peak seen in July 2008 when a price of a barrel was $148, even when you factor in exchange rates and taxes of back then and today it still doesn't add up. It's greed, pure and simple.

Look at the new motor tax based on CO2 emissions, why wasn't that applied to all cars and not just new vehicles registered on or after 1 July 2008.

L1011

hellboy99 wrote: »

In the last two years we've seen oil at $148 (€119) a barrel and at $33 (€26) a barrel, currently it's at $68 (€55) a barrel. Many garages today are now charging more than the €1.33 peak seen in July 2008 when a price of a barrel was $148, even when you factor in exchange rates and taxes of back then and today it still doesn't add up. It's greed, pure and simple.

Significant amounts have been added to both petrol and diesel duties in that, what, three budgets we've had since July 2008.

There's no greed on the retailers part, they're making the same almost unsurvivable margins they have done for years.

NewApproach

It's very simple OP, the price of oil has very little effect on the prices we pay at the pumps for petrol/diesel.

As other posters have said, the bulk of what we pay is in taxes. Then there is margins for the importers, distributors, garages etc (please don't be silly and call this greed), costs involved in turning crude oil into petrol. So only a small proportion of what we pay is for the actual oil. And at the minute any fall in price of oil has been negated by currency fluctuations. It's really quite simple.

And FWIW if it wasn't for a favourable €/$ rate (for consumers) a few years ago then the rising oil prices at the time would have had a larger impact on the prices we paid here for petrol.

fptosca

Bullseye1 wrote: »

Why are the petrol stations not passing on the drop in oil prices? They are quick enough to rise the price when oil heads upwards. :rolleyes:

That's because the Euro has lost loads of its value against the Dollar. So if $70 was equal to €35 not so long ago $70 equals to €56 now. Hence petrol is more expensive for € Countries now than it was before.

fptosca

fptosca wrote: »

That's because the Euro has lost loads of its value against the Dollar. So if $70 was equal to €35 not so long ago $70 equals to €56 now. Hence petrol is more expensive for € Countries now than it was before.

+1

that and the carbon tax

http://www.thepropertypin.com/viewtopic.php?f=19&t=19968&start=30

Have a look at the charts ^^ the Euro is falling in value against everything from the US Dollar to the Icelandic Krona. The Euro is proving to be a volatile currency it will be a while before anyone wants to trade oil in Euros instead of Dollars!

http://www.pumps.ie/FAQPricesExplained.php
That Link is great for seeing just how much tax is on our fuel...its astounding actually

MojoMaker

Petrol down 4c a litre at all my local stations today so the price collapse is making it through to the forecourts after all.

Voodoomelon

It's not just here.
Petrol in Newry is £1.21 a litre. That makes it more expensive than down south.

Many places in Europe also have €1.40+ prices. I don't like it any more than you guys, my last fill was €111.50, but i'm always glad its not like many other places.

Comparing to US prices is nonsensical, but compare to other European prices and you'll see we have pretty average petrol prices.

vincenzolorenzo

Very annoying, no doubt about it. I think something like 70% of the pump price goes straight to the government, but thats pretty much been the way for years. The recent carbon tax bumped the price up a bit...but the main problem is the weakness of the euro versus the dollar.

A couple of years ago petrol was the same as it is now (€1.35 per litre) even though a barrel of oil was much higher than the current level (~$150 IIRC). The difference that time was that the euro was much stronger than it currently is.

91011

Its a very simple equation to work out forecourt prices.

The industry has always said that it takes 2 weeks for oil price changes to get to the forecourt.

The www.pumps.ie website has been forecasting two week forward prices (upwards & downwards) for about 2 years now and believe it or not, what the industry said is actually true.

Since May 8th oil prices started falling, but the dollar also went from 1.36 to 1.23 (now at 1.25).

Refinery Prices went from $2.40 per US gallon (3.8litres) in early May to $1.96 today. - In euro per litre that equates to 46.5c (May 3rd @ 1.35 exchange rate) down only to 41.3c today. (based on 1.25 exchamge rate)

Add in duties & taxes of 56.4c, 10c between distributor & retailer & vat and you get to an early May price of 136.6 and an early June price of 1.30.

On average a retailer will take 5c - 6c from a litre of fuel - costs for retailer include credit card charges @ 1%, rent, rates, staff, utilities etc.

Or put another way - a €3 sandwich is more profitable than a €40 fill of fuel.


- I have zero interest in the industry but do contribute to pumps.ie

DonJose

Stekelly wrote: »

Seeing as everyone is so quick to point out how great the UK is, their petrol is dearer than ours so wat about a "cheers FF/Greens" for being so generous and charging less tax than the uk.:)

The UK doesn't charge motorists VRT, even then their petrol prices are not much higher than in Ireland.

http://www.petrolprices.com/ £1.21 per litre unleaded

http://www.aaireland.ie/petrolprices/ - €1.34.4 per litre unleaded

£1.21 = €1.39

P.C.

DonJose wrote: »

The UK doesn't charge motorists VRT, even then their petrol prices are not much higher than in Ireland.

http://www.petrolprices.com/ £1.21 per litre unleaded

http://www.aaireland.ie/petrolprices/ - €1.34.4 per litre unleaded

£1.21 = €1.39

I don't understand what VRT has to do with the price of petrol, but maybe this will help:

The Netherlands has a tax on new cars, and their price of unleaded is higher than in Ireland.

http://www.aaireland.ie/petrolprices/ - 1.585 per litre unleaded.

vincenzolorenzo

squod wrote: »

People aren't shopping around. Fed up having to put a fiver in the tank just to go fill up where it's cheaper.

Well thats just daft TBF. Its very rare to see any more than 1 or 2 cent difference between petrol stations. If you car holds 50-60 litres then you're only talking about an extra 50c / €1 to pay. Costs me approximately 17c a mile on petrol so it just doesn't pay to go out of you way for a 1 cent/litre saving

billybigunz

Motoring in the uk is far cheaper than here. There petrol prices are fairly close to ours.

harr

i have a friend in galway who runs a small garage and shop at the moment he is only getting 1-2 cent a litre it is the green party not the garage owners people should be venting there rage at.as someone else pointed out he makes more from news papers and sweets than his fuel.he had to let his only full timer go last week.his costs have gone through the roof in the last 2 years.you would not belive the price of his council rates.no bmw for him he drives a 98 ford:mad: