Page 1 of Motor fuel prices - something I don`t understand

Been thinking about this recently. The price of crude oil is priced in US dollars, right ? Now the US dollar is trading at around $1.80 to the £1 which is the lowest it`s been for ages. So how come the price of motor fuel oil, or come to that domestic heating oil hasn`t been reduced accordingly ? Or am I being naive ?

JohnF

GW6UFO is QRT at the moment

The government doesn`t think `ordinary` people will pick up on this giving them a bit more of a chance to make some extra fundings to diappear into that Black hole that various other fundings vannish into.

Fuel duty is a fixed "pence per litre" figure, so the price of oil doesn`t have any direct bearing on the government`s revenue. It`ll be the oil companies who are profiting.

Yeah Right :o

Ste.

Quote:
The price of crude oil is priced in US dollars, right ? Now the US dollar is trading at around $1.80 to the £1 which is the lowest it`s been for ages. So how come the price of motor fuel oil, or come to that domestic heating oil hasn`t been reduced accordingly ?


I was thinking that last night as the petroleum emporium at the end of my road put its prices up a penny on what they were the day before. With the dollar scr$$ed at the moment, the price of petrol should be coming down.....

Just to cheese you guys off a bit more we pay approximately the same price in EUROS here in Austria as you pay in pounds (e.g. 80p/litre - UK, 0.80EUR/litre - Austria). If you do the maths that`s about 30% cheaper :D .

If like me you are a `foreigner` newly living in Austria you do however get stung on the car insurance.

Riggs

I`m too old for this sh*t!

Quote:
It`ll be the oil companies who are profiting.OK, (into sarcastic mode).So that`s why the E$$o stations have put up their prices by a couple of pence in the last few weeks.


JohnF

GW6UFO is QRT at the moment

This item was edited on Wednesday, 14th January 2004, 12:09

Boils down to GREED, penny pinching and an easy target..... screw joe motorist. WE ARE THE CASHCOW`S!!!! Poxy UK! >:(

While we are on the subject, there is a petrol station inbetween Corwen and Ruthin thats selling unleaded @ 93.9p a LITRE! Dont all rush their to fill up :D


===================

The Shi*house poet needs a good thrashing, Grafitti ISNT cool.... kiddies!

We pay 58 pence sterling a litre in Switzerland.. and we think that`s expensive.

This item was edited on Wednesday, 14th January 2004, 14:53

Only 17.2 pence relates to the fuel charge on an 85 pence per litre charge. The remainder relates to duty 50.89 pence, VAT 12.7 pence and 4.2 pence to the retailer - please excuse any rounding errors.

The duty is FIXED so a drop in crude prices does not impact the amount of duty paid. Also of the 17.2 pence fuel charge a proportion relates to the refining cost. So the raw materials equate to about 20% of the fuel price at the pump. A change of 5% would therefore be required to see a 1% pump price change - everything else being equal.

Last year I drove 30k miles. I estimate 38 mpg so thats approximately £2.3k in taxes to the Govt. The incomce tax rate would need to go up considerably by 9% to make this up in average earnings of £25k pa or about 3% if everyone did 10k miles pa.

Its still a rip though!