Petrol Prices rising again, but why?

kluivert

Filled the Astra yesterday costed 52e. That is the first time I have reached over 50e for a fill in a long time (119.9p per litre). I got 42mpg. I drive like a granny

Taking into account the 8c increase in Apr the old price would be 111.9p per litre.

Lucky then a fill lasts me a 1.5 - 2 weeks.

But seriously, i find the rising cost of fuel un comprehensable. Ok the price of brent crude has increased, but on what grounds - speculation again.

World economic reports suggest lowering economic growth, and get the price of oil increases. Crazy practice. There should be a ban on spread betting etc on commodities.

But with the cost of diesel also increasing its starting to cost a small fortune for the GF to travel up and down to Dublin for work.

Is it cheaper to buy petrol and diesel in the North yet??

20goto10

It's no surprise really. The stock markets have been on an overall steady increase for about 3 months now (although wobbling a bit lately), there is signs of the global recession bottoming out, problems in Iran and problems in Nigeria. It all means expensive prices at the pump.

Heroditas

kluivert wrote: »

but on what grounds - speculation again.

World economic reports suggest lowering economic growth, and get the price of oil increases. Crazy practice. There should be a ban on spread betting etc on commodities.

Yup, speculation, speculation and more speculation.
It's a quick low risk gamble for the traders and is causing the price to jump up. Demand has remained relatively flat and production hasn't been cut yet the price is rising ... caused by the speculators.
As a result we'll have to put up with all the rubbish about "terrorist attacks on pipelines in Nigeria". Funny how the price kept dropping even when these attacks were happening last winter.

kmick

Just use your car less - its the only option to you to keep your fuel costs static. Buy a bike. Its a sure fire way to use your car less.

voxpop

kmick wrote: »

Just use your car less - its the only option to you to keep your fuel costs static. Buy a bike. Its a sure fire way to use your car less.

Lex Luthor

kluivert wrote: »

Is it cheaper to buy petrol and diesel in the North yet??

Sainsburys in Belfast on Wed was 1.01 for petrol and 1.03 for diesel, so I guess not really

20goto10

Heroditas wrote: »

Yup, speculation, speculation and more speculation.
It's a quick low risk gamble for the traders and is causing the price to jump up. Demand has remained relatively flat and production hasn't been cut yet the price is rising ... caused by the speculators.
As a result we'll have to put up with all the rubbish about "terrorist attacks on pipelines in Nigeria". Funny how the price kept dropping even when these attacks were happening last winter.

The point of speculation is predicting future demand. Its the signs of recovery which is the root cause of it all. Economic recovery means higher fuel demand, meaning oil is now a nice looking investment prospect. Speculation causes prices to go up before the demand happens...but the demand will follow.

kmick

kmick wrote: »

Just use your car less - its the only option to you to keep your fuel costs static. Buy a bike. Its a sure fire way to use your car less.

Not much good for people who have drive long drives.

I was spending around 50e a week a few months ago its now over 60e on average per week. I dont care what anybody says they are all a pack of gangsters.

Heroditas

20goto10 wrote: »

The point of speculation is predicting future demand. Its the signs of recovery which is the root cause of it all. Economic recovery means higher fuel demand, meaning oil is now a nice looking investment prospect. Speculation causes prices to go up before the demand happens...but the demand will follow.

Ah but demand has only changed by a couple of % points.
A very tiny change in demand triggers an almighty flurry of trading by speculators.
Lots of speculation -> tiny change in demand -> even more speculation -> $150 per barrel

Heroditas

Howard Uninterested Mascara wrote: »

Not much good for people who have drive long drives.

Brace yourself for the barrage of "you should live closer to your place of work" from the self-righteous brigade. :rolleyes:

Heroditas

Heroditas wrote: »

Brace yourself for the barrage of "you should live closer to your place of work" from the self-righteous brigade. :rolleyes:

I live quite close to work but drive home at weekends which is where most of my petrol goes.

20goto10

Heroditas wrote: »

Ah but demand has only changed by a couple of % points.
A very tiny change in demand triggers an almighty flurry of trading by speculators.
Lots of speculation -> tiny change in demand -> even more speculation -> $150 per barrel

True

cnocbui

kmick wrote: »

Just use your car less - its the only option to you to keep your fuel costs static. Buy a bike. Its a sure fire way to use your car less.

You mean like that young French girl who was studying at Ul and was mown down by a truck? She will never have to spend money on anything ever again, poor thing.

Some savings turn out to be false economies.

20goto10

Howard Uninterested Mascara wrote: »

Not much good for people who have drive long drives.

I was spending around 50e a week a few months ago its now over 60e on average per week. I dont care what anybody says they are all a pack of gangsters.

Buy a hybrid car and drive around at 35mph so that the petrol engine doesn't kick in Although I think if you never use the petrol engine the battery would go flat.

inforfun

Also, don't forget the dollar has its influence too.
If the dollar is recovering vs the euro, you will notice that in the petrol price.

mcaul

I provide fortnight forward predictions on the www.pumps.ie website.

Basically, the barrel of oil is only a small amount of the cost basis.

Currently the cost of unleaded fuel is 36c / litre delivered to port (down from 39c / litre last week). The lowest price it hit was 16c at Christmas.
Add to this 50.79c duty & approx. 10c between distributor & retailer and then add 21.5% vat

Total is €1.17 which will be the average price we shiould see from about 5th July. Some stations use fuel as a loss leader to get you to buy a sandwich, so you'll find some better priced stations at about €1.13 and some others who will charge 1.20

As for some people saying that prices increase quicker than they decrease - this actually is untrue./ I've been tracking upward & downward pricing for about a year and today's world price feeds into the pumps about 2 weeks later. (up & down)


Funny thing - Ireland has one of the lowest prices for fuel in europe!

sparklepants

Heroditas wrote: »

Ah but demand has only changed by a couple of % points.
A very tiny change in demand triggers an almighty flurry of trading by speculators.
Lots of speculation -> tiny change in demand -> even more speculation -> $150 per barrel

The low prices recently were equally the result of speculation. So speculation can push the prices down as well as up.

One-year forecasts suggest that oil prices will continue to rise. In Ireland we will have the added burden of carbon tax by next year. So at a price of say €30 per ton CO2, this would add around 7c to a litre of petrol.

Gumbo

mcaul wrote: »

Funny thing - Ireland has one of the lowest prices for fuel in europe!

but dont we make up for it with the higher insurance costs and road tax costs compared to the UK for example?

kluivert

mcaul wrote: »

Currently the cost of unleaded fuel is 36c / litre delivered to port (down from 39c / litre last week). The lowest price it hit was 16c at Christmas.
Add to this 50.79c duty & approx. 10c between distributor & retailer and then add 21.5% vat

36 + 50.79 + 10 + 20.80 (vat) = 117.59 per litre.

Wow, the government get approx 60% from every litre.

I didnt realise it was that much. And approx 10% margin of fuel between distributor and retailer is alot considering the volumes of fuel that goes through the pumps.

JHMEG

mcaul wrote: »

Funny thing - Ireland has one of the lowest prices for fuel in europe!

That's not really true any more. We're more in the middle now.

For example in May unleaded was cheaper in 12 out of the 25 European Union countries than it was here.

Eric Cartman

Heroditas wrote: »

Brace yourself for the barrage of "you should live closer to your place of work" from the self-righteous brigade. :rolleyes:

i hate that brigade, im 30 mins from work, but work is terenure so id be paying 2x what im paying in rent to live around there

kmick

cnocbui wrote: »

You mean like that young French girl who was studying at Ul and was mown down by a truck? She will never have to spend money on anything ever again, poor thing.

Some savings turn out to be false economies.

RIP - Accidents can and do happen and any deaths are bad.

All I'm saying is there are alternatives to the car. If you are a long way from work then obviously it does not count. Anything under 3 or 4 km is well walkable and anything under 10km is well cyclable in most cases.

mcaul

kluivert wrote: »

36 + 50.79 + 10 + 20.80 (vat) = 117.59 per litre.

Wow, the government get approx 60% from every litre.

I didnt realise it was that much. And approx 10% margin of fuel between distributor and retailer is alot considering the volumes of fuel that goes through the pumps.

I wouldn't consider 10c a litre excessive considering all the costs involved. Transfer to road tanker, deliver to stations, rent/rate/electricity for running the stations, staff wages, credit card costs (1.25% on average), internal accounting costs, insurances and the dreaded driveaways!

You won't find me going into the business anyway!

L1011

kluivert wrote: »

And approx 10% margin of fuel between distributor and retailer is alot considering the volumes of fuel that goes through the pumps.

Thats margin, not profit. The costs covered by that 10% are large.

LostinBlanch

mcaul wrote: »

I provide fortnight forward predictions on the www.pumps.ie website.

Basically, the barrel of oil is only a small amount of the cost basis.

Currently the cost of unleaded fuel is 36c / litre delivered to port (down from 39c / litre last week). The lowest price it hit was 16c at Christmas.
Add to this 50.79c duty & approx. 10c between distributor & retailer and then add 21.5% vat

Total is €1.17 which will be the average price we shiould see from about 5th July. Some stations use fuel as a loss leader to get you to buy a sandwich, so you'll find some better priced stations at about €1.13 and some others who will charge 1.20

As for some people saying that prices increase quicker than they decrease - this actually is untrue./ I've been tracking upward & downward pricing for about a year and today's world price feeds into the pumps about 2 weeks later. (up & down)


Funny thing - Ireland has one of the lowest prices for fuel in europe!

Thanks for this info mccaul. But the prices haven't gone down in the last week, they've gone up.

Heroditas

LostinBlanch wrote: »

Thanks for this info mccaul. But the prices haven't gone down in the last week, they've gone up.

The price delivered to port has gone down, it takes a week or so to filter through as the petrol is delivered to the stations.

P.C.

LostinBlanch wrote: »

Thanks for this info mccaul. But the prices haven't gone down in the last week, they've gone up.

Petrol station down the road from me went down 2c today .

Only problem - the car is half full, and the bike is full .

Hopefully it will keep going down.

halkar

Last year this time during petrol price peak of around 140$ pb the pumps were around 1.45€. Now the petrol is around 70$ pb and pumps nearing to 1.20€. Apart from the currency movement of maybe 20 US cent am I missing something or do we expect to see petrol in pumps for over 2€ if it peaks again pb closer to last year prices? I seriously hope this is not the case or while the world is recovering from recession we will be fecked big time :mad:

P.C.

halkar wrote: »

Last year this time during petrol price peak of around 140$ pb the pumps were around 1.45€. Now the petrol is around 70$ pb and pumps nearing to 1.20€. Apart from the currency movement of maybe 20 US cent am I missing something or do we expect to see petrol in pumps for over 2€ if it peaks again pb closer to last year prices? I seriously hope this is not the case or while the world is recovering from recession we will be fecked big time :mad:

Reread post No. 16.

It explains it pretty well.
The tax on petrol/diesel will not change*















* untill the next budget, maybe.