Petrol Prices

pauldiv

In our town the cost of petrol hit 1.25 per litre over one year ago when the oil price was soaring toward $150 per barrel.

Now that oil is under 80 dollars a barrel, and at a time when it does not look like there is a war about to start, the price is still around 1.20 per litre. Why?

They tell us that prices rise and drop with market demand but it seems the local garages know something we don't. Maybe the current stocks were bought at high prices and if so things would make more sense.

Yesterday they dropped the price of petrol by around 20% at some English garages. Will Irish consumers get the same treatment I wonder?

After all, when unemployment soars, not so many people will be needing petrol.

I would be interested in hearing what other people think. Thanks.

You know the tax went up on petrol right?

danyosan

Deleted User wrote: »

You know the tax went up on petrol right?

It didnt go up on diesel and thats hasnt dropped in price significantly.

pauldiv

The tax might have gone up but the price of oil has dropped by about 50% so why are we not paying much less for our petrol?

Yesterday Gordon Brown said he wanted an economy where we pay the market rates for the stuff we consume, ie when prices rise you pay more, when they fall you pay less.

We can send man to the moon and yet we cant even create an economic system that works for the people it is meant to serve.

darc

You need to understand the pricing structure and variables for the refined product.

When oil went from $75 to $147, petrol / diesel did not go from 1.05 to 2.10.

All oil products are priced in US dollars.

In July / August you got close to $1.60 for your euro. Today you get 1.34

Duty on diesel is approx. 35c per litre no matter what price it is on world markets. On Petrol it is now 44c.

Cost of transporting to Ireland, distribution to garages and distributor & retailer profit margins is approx 12-15c per litre.

Current price of refind diesel is $2.20 per US gallon (3.8litres). Unleaded petrol is $1.72

Calculation is as follows for todays price on world market (usually at the pumps 2 weeks later.

Diesel - $2.20/3.8 = 0.58 US Cent / Litre. Currency. 0.58 / 1.34 = .43 euro cent per litre. Add 35c duty + 12-15c distribution = 90c + 21% VAT = 1.09 - 1.14.
Expect Diesel to drop to this level in approx. 2 weeks. Current price at pumps seems to be 1.18 - 1.23 which corralates to $2.55 / US gallon price of 2 weeks ago.

Petrol
$1.72 / 3.8 litres = 0.45 / currency @ 1.34 = 0.34. Add duty @ 44c, retail / distribution margin 12 - 15c = 90c - 93c. + VAT = €1.09 - €1.13

pauldiv

pauldiv wrote: »

Yesterday Gordon Brown said he wanted an economy where we pay the market rates for the stuff we consume, ie when prices rise you pay more, when they fall you pay less.

Move to the UK then

We can send man to the moon and yet we cant even create an economic system that works for the people it is meant to serve.

Utter ****e