Petrol/Diesel Prices - How high?

popebenny16

Assuming this is the right place for the question.

Prince Assad on Newsnight Monday mentioned $200 a barrell if the situation in the Middle East gets worse and Iran and Isreal start firing at each other, which would be about €5 per litre I think. This would have drastic effects on the way our transport and economy works.

As a big percentage of the price at the pump goes in excise duties will the government cap their cut, so that every i cent rise dosnt equal 1.5 cent with the duty? Will the government finally place a price cap and at what level?

Also, at what price per litre will people here start seriously about curtailing journeys and turning off a/c, closing windows and the like to cut down consumption?

Finally, what other options do you think will be taken?

Nuttzz

considering that duty makes up the vast price at the pump im sure duty changes can be made to prevent damage to the economy however it will be supply rather than mere price that will be the main issue

silverharp

Peak oil by some estimates is only a couple of years away but for now it may go to a hundred on geopolitical issues and or go back to 50 on fundamentals, if demand exceeds supply then the price would go to $200 but this would set off a recession and would fall form there.
I would think twice about buying a new car from here and would keep well away from Aer Lingus shares

I only fill the tank about every 2 months apart from holidays, so €2 or €3 per ltr is fine by me, might reduce consumprion at 5€

mikemac

I wouldn't be overly worried.
It might force the introduction of alternatives such as biodiesal and the etyhl alcohol product I heard about the radio, a few years early.

silverharp

micmclo wrote:

I wouldn't be overly worried.
It might force the introduction of alternatives such as biodiesal and the etyhl alcohol product I heard about the radio, a few years early.

I would, it would come down to, do you want food to eat or to make into fuel. Fuel for trnasportation is going to be a massive issue in about 5 years time, from memory all the corn currently grown in the US would only supply 1% of fuel for cars for the US

अधिनायक

popebenny16 wrote:

Assuming this is the right place for the question.

Prince Assad on Newsnight Monday mentioned $200 a barrell if the situation in the Middle East gets worse and Iran and Isreal start firing at each other, which would be about €5 per litre I think.

more like €3.20/litre.

Will the government finally place a price cap and at what level?

yes. taxes more than double the cost of petrol. When it looks like people can't afford to get to work they will cut fuel taxes. They can keep prices below $3/litre by removing all taxes even when crude reaches around $400/b.

Heating will have a more direct effect as there is less scope for tax cuts and the cost of manufacturing will increase dramatically.