Oil prices
Anyway what is the cause, are US increases in production aimed at hurting Russia? And OPEC refusing to reduce demand
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1.12 for unleaded at charlton asda1
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Its a bit of all three, petrol is taxed quite highly. like cigarettes of which 80p in the £1 goes to the treasury, not sure of the petrol breakdown but it is similar. Drops at the pumps should still come through, but look out for the next government hiking up petrol again.razil said:Don't seem to have halfed at the pumps, yet price of crude has apparently fallen by nearly that much in six months, tax? Profiteering?
Anyway what is the cause, are US increases in production aimed at hurting Russia? And OPEC refusing to reduce demand
Saudi are too committed to expenditure that they cannot reduce production, shale in US has moved US to virtual self sufficiency.
Knock on effects are that oil exploration in Arctic and other new territories have been postponed as they are no longer commercially viable.0 -
Price won't be halved as only a certain percentage of the price goes to the company setting the price0
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Duty and VAT account for something like 60% of the price doesn't it0
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OPEC can't reduce production, far too worried about shale!0
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58p per litre is duty, then theres VAT, so I assume the former remains the same regardless0
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In the States the price of petrol at the pumps has dropped about 25% in the past six months. The price of a barrel of crude oil over the same period has dropped about 35%. So, over here, the person on the street sees a fair amount of the reduction and it is still falling. In view of the drop over here I was going to ask the question myself the other day as to whether you in the UK are benefiting from the lower price of crude. Apparently not (not significantly anyway).
The average price of a gallon of petrol in the States at the moment is $2.86. (the US gallon is smaller than the imperial gallon).0 -
The difference is because the fixed cost of tax on petrol is much lower in the US, meaning a higher % of the cost is based on the price of oil. As we say some of the highest tax on petrol in the world the price drop will mean less here.Rob said:In the States the price of petrol at the pumps has dropped about 25% in the past six months. The price of a barrel of crude oil over the same period has dropped about 35%. So, over here, the person on the street sees a fair amount of the reduction and it is still falling. In view of the drop over here I was going to ask the question myself the other day as to whether you in the UK are benefiting from the lower price of crude. Apparently not (not significantly anyway).
The average price of a gallon of petrol in the States at the moment is $2.86. (the US gallon is smaller than the imperial gallon).
The tax on petrol is a fixed amount, it's not a % of the price.0 -
Agreed. It's all about the amount of taxation.0
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Saudi's scared of shale and also trying to damage Iranian economy.0
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Have a heart !
Think of the poor oil drillers
, refiners and sellers won't you this Christmas;(0 -
Lots of Shale under Russia and Ukraine apparently0
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We have oil fired central heating. When we moved in under three years ago it was 67p a litre. Now it's about 45p. Long may it continue.0
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Things could get interesting for the economy here in Oil County Alberta if the price stays low, but for now the short term effects are nice enough - paid the equivalent of about 45p a litre when I filled up last night, which is about half what I was paying in the UK when I started driving! I kind of wish I'd bought that V8 pickup truck now.0
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I remember a comment my old boss made about petrol prices in his garage.
He said oil companies must spend millions looking for oil, carrying out surveys and tests drills in inhospitable parts of the world, possibly deep under water (requiring the building of oil rigs).
Then pay a fortune to obtain drilling rights, possibly incl kickbacks, backhanders, and government levies. Then they have to extract the oil often from great depths, paying professional and expert staff large salaries, whilst under strict environmental inspection.
Before constructing pipelines or huge tankers to transport crude across the world, then build huge facilities to store and refine it, then deliver in huge expensive trucks to sell in a garage. The garages have to instal pumps and safety equipment, and employ staff often for twenty four hours opening. Then the govt tax it to about 80 percent. And still they sell petrol/diesel for (current price) approx £1.14 a litre, and everyone complains about the greed of the petrol industry.
On the other hand companies such as Buxton or Evian put water in a plastic bottle and sell it for about £1.40 a litre.10 -
Someone with more of a clue than me will know
Did I hear Scottish Independence , if it had come to fruition, would have been in massive trouble because a lot of their income was based on the price of oil being a lot higher than current levels ?0 -
#prayforScotland2
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Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!0
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If the price of petrol is dropping, maybe more people will consider a drive into the country to be an affordable day out, meaning they use more petrol. As tax on petrol is a set figure per liter that would be an increase in revenue??Chaz Hill said:Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
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Chaz Hill said:
Every 'silver lining' has a 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
True, especially with the festive season upon us but it will nowhere near compensate for the loss in the revenue from the day to day essential use purchases. I'm still not convinced it will be a long term reduction anyway but who knows with the world economies as they are!Stu_of_Kunming said:
If the price of petrol is dropping, maybe more people will consider a drive into the country to be an affordable day out, meaning they use more petrol. As tax on petrol is a set figure per liter that would be an increase in revenue??Chaz Hill said:Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
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Asda have announced another 2p cut tomorrow, will be £1.10 for unleaded.0
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In my first company the oil & gas division (I was at an events company who organise summits) had an Exploration & Production Summit back in 2006/07/08/09. The Exploration bit got dropped (In Europe anyway), it became on Offshore Production Summit, talking about the technology involved in Offshore Production. From my basic understanding of this area, it was getting harder and harder to identify and utilise technology to maximise oil production.
I've no technical knowledge mind, but from the way the industry was talking, shale, LNG and renewables really are the way forward. Again, as @Kap10 mentions above some of these areas are so challenging to produce oil from. Based on this, and based on the fact that we have diminishing oil reserves, shouldn't the price of oil be going up, or am I being to over simplistic and a bit thick?0 -
If it drops below £1 a litre it won't be worthwhile me siphoning the neighbours Range Rover.4
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Oil is bought in $US so the £ currency exchange rate can have an impact on what we pay at the pump.0
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What day to day purchases? Are we still talking about petrol?Chaz Hill said:Chaz Hill said:Every 'silver lining' has a 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
True, especially with the festive season upon us but it will nowhere near compensate for the loss in the revenue from the day to day essential use purchases. I'm still not convinced it will be a long term reduction anyway but who knows with the world economies as they are!Stu_of_Kunming said:
If the price of petrol is dropping, maybe more people will consider a drive into the country to be an affordable day out, meaning they use more petrol. As tax on petrol is a set figure per liter that would be an increase in revenue??Chaz Hill said:Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
People are going to stop their essential purchases because fuel has dropped in price?0 -
You pay VAT as part of the cost of fuel. Therefore the cheaper the fuel element the less revenue going to the Exchequer.Stu_of_Kunming said:
What day to day purchases? Are we still talking about petrol?Chaz Hill said:Chaz Hill said:Every 'silver lining' has a 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
True, especially with the festive season upon us but it will nowhere near compensate for the loss in the revenue from the day to day essential use purchases. I'm still not convinced it will be a long term reduction anyway but who knows with the world economies as they are!Stu_of_Kunming said:
If the price of petrol is dropping, maybe more people will consider a drive into the country to be an affordable day out, meaning they use more petrol. As tax on petrol is a set figure per liter that would be an increase in revenue??Chaz Hill said:Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
People are going to stop their essential purchases because fuel has dropped in price?0 -
You also pay duty on it that is fixed per litre.Chaz Hill said:
You pay VAT as part of the cost of fuel. Therefore the cheaper the fuel element the less revenue going to the Exchequer.Stu_of_Kunming said:
What day to day purchases? Are we still talking about petrol?Chaz Hill said:Chaz Hill said:Every 'silver lining' has a 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
True, especially with the festive season upon us but it will nowhere near compensate for the loss in the revenue from the day to day essential use purchases. I'm still not convinced it will be a long term reduction anyway but who knows with the world economies as they are!Stu_of_Kunming said:
If the price of petrol is dropping, maybe more people will consider a drive into the country to be an affordable day out, meaning they use more petrol. As tax on petrol is a set figure per liter that would be an increase in revenue??Chaz Hill said:Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
People are going to stop their essential purchases because fuel has dropped in price?0 -
VAT makes up a tiny amount of the tax paid on fuel, surely?Chaz Hill said:
You pay VAT as part of the cost of fuel. Therefore the cheaper the fuel element the less revenue going to the Exchequer.Stu_of_Kunming said:
What day to day purchases? Are we still talking about petrol?Chaz Hill said:Chaz Hill said:Every 'silver lining' has a 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
True, especially with the festive season upon us but it will nowhere near compensate for the loss in the revenue from the day to day essential use purchases. I'm still not convinced it will be a long term reduction anyway but who knows with the world economies as they are!Stu_of_Kunming said:
If the price of petrol is dropping, maybe more people will consider a drive into the country to be an affordable day out, meaning they use more petrol. As tax on petrol is a set figure per liter that would be an increase in revenue??Chaz Hill said:Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
People are going to stop their essential purchases because fuel has dropped in price?0 -
It was in the range of 20-25p per litre pre the price crash. The Excise duty which remains the same whatever is about 60p. So the VAT drop will be a significant loss.Stu_of_Kunming said:
VAT makes up a tiny amount of the tax paid on fuel, surely?Chaz Hill said:
You pay VAT as part of the cost of fuel. Therefore the cheaper the fuel element the less revenue going to the Exchequer.Stu_of_Kunming said:
What day to day purchases? Are we still talking about petrol?Chaz Hill said:Chaz Hill said:Every 'silver lining' has a 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
True, especially with the festive season upon us but it will nowhere near compensate for the loss in the revenue from the day to day essential use purchases. I'm still not convinced it will be a long term reduction anyway but who knows with the world economies as they are!Stu_of_Kunming said:
If the price of petrol is dropping, maybe more people will consider a drive into the country to be an affordable day out, meaning they use more petrol. As tax on petrol is a set figure per liter that would be an increase in revenue??Chaz Hill said:Every 'silver lining' has 'cloud'. How is George going to make up for the lost revenue particularly as petrol taxes are the the easiest and speediest to collect!
People are going to stop their essential purchases because fuel has dropped in price?0
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