Crude Oil price.. are we being ripped off or what ?

[vegster]

Just saw on the news that Crude oil is now trading at $44 a barrel down from $145 a barrel a year ago..... in my recollection Petrol has gone down from £1.36 a Litre to about £1.06 a Litre... so where has the wholesale saving gone ?

 

[beorhthelm]

duty, VAT, cost of refinery, profit margin stay the same.

 

[Igzilla]

Current UK duty on petrol is around 58p a litre, plus 20% Vat on top of that.

 

[Berty23]

We pay about 70 pence tax on a litre. The petrol needs to be transported after being refined. The garage you buy it from make some cash. That all comes out of the remaining 35 pence you currently pay.

 

[Berty23]

Current UK duty on petrol is around 58p a litre.

And VAT on top I assume.

 

[Igzilla]

And VAT on top I assume.

Yes, sorry, original post edited.

 

[vegster]

duty, VAT, cost of refinery, profit margin stay the same.

So, wholesale price drops 60% yet price to consumer drops 27% odd ?

 

[Berty23]

So, wholesale price drops 60% yet price to consumer drops 27% odd ?

You have to ignore 70 pence of the 1.36 as it is tax to government.

 

[Lord Bracknell]

So, wholesale price drops 60% yet price to consumer drops 27% odd ?

If the alternative is raising income tax, I guess most UK consumers prefer the current arrangements.

 

[crookie]

So, wholesale price drops 60% yet price to consumer drops 27% odd ?

Yes because the duty is a fixed amount per litre, with 20% added to that, whatever the wholesale price is. So without duty/tax, cost has fallen from about 75p a litre to 35p a litre

 

[lawros left foot]

The worrying thing is that when the price per barrel of crude goes up again , as it inevitably will, will the price at the pump rise at the same level, i.e. if crude rises to over $ 100 dollars a barrel, will refined petrol double in price from what it is now, or go up only as high as it was before?

 

[Berty23]

The worrying thing is that when the price per barrel of crude goes up again , as it inevitably will, will the price at the pump rise at the same level, i.e. if crude rises to over $ 100 dollars a barrel, will refined petrol double in price from what it is now, or go up only as high as it was before?

I would imagine as it was before because the oil price is not that much of the cost the consumer pays.

 

[vegster]

Yes because the duty is a fixed amount per litre, with 20% added to that, whatever the wholesale price is. So without duty/tax, cost has fallen from about 75p a litre to 35p a litre

So we are being ripped off then... recently I was in France and a quick calculation of their petrol was 78 p a litre.

 

[crookie]

So we are being ripped off then... recently I was in France and a quick calculation of their petrol was 78 p a litre.

£200 million a day we're borrowing aren't we. Got to collect taxes from somewhere I guess, if it wasn't from petrol, would be from something else. That NHS doesn't come cheap !!

 

[vegster]

£200 million a day we're borrowing aren't we. Got to collect taxes from somewhere I guess, if it wasn't from petrol, would be from something else. That NHS doesn't come cheap !!

You say " we " ? I'm not borrowing anything, I don't have a mortgage or a credit card or any loans so don't lump it all on me... I've only been to the doctor once in the last 3 years too !

 

[crookie]

You say " we " ? I'm not borrowing anything, I don't have a mortgage or a credit card or any loans so don't lump it all on me... I've only been to the doctor once in the last 3 years too !

Can't remember last time I went, probably been removed from the list !! Can that happen if you never go ? Genuine question

 

[Berty23]

Did you go to school? Do you feel in danger every time you go out or is it relatively safe?

 

[vegster]

Can't remember last time I went, probably been removed from the list !! Can that happen if you never go ? Genuine question

I don't think so, if you have a national insurance number you are on the system for life... how long that is depends on whether you are a, with BUPA or b, living north of Nottingham, or c, are a graduate of Eton

 

[Hampster Gull]

Yes we are

 

[Questions]

You say " we " ? I'm not borrowing anything, I don't have a mortgage or a credit card or any loans so don't lump it all on me... I've only been to the doctor once in the last 3 years too !

Yeah but it takes money to check for chlamidia