Oil falls to Dec 2008 levels... and still falling

bear1

So on the news today I've read that Oil is not on par with the prices of Dec 2008, the height of the financial crisis.
2$ less and it will be close to the 2004 price.
Now, I'm wondering at which point would the Government decide that they have no choice but to lower the tax on the fuel? Or is this even possible?
Considering that 60% approx is tax on the price we pay and petrol stations already struggle to make a profit on the fuel it sells, is there any likelihood of seeing fuel go to near 1e levels?
Interesting times ahead I think

RustyNut

If anything the government will take advantage and increase the tax on fuel as the cost price falls so the price will be stable at the pump but they will get a bigger take.

Probably not before the election tho.

Dero

bear1 wrote: »

is there any likelihood of seeing fuel go to near 1e levels?

I saw diesel today in Dublin 12 for 109.9¢, so it's heading in that direction.

RustyNut

Dero wrote: »

I saw diesel today in Dublin 12 for 109.9¢, so it's heading in that direction.

Where exactly?

Dero

RustyNut wrote: »

Where exactly?

Here. Directly across from the Sheldon Park hotel.

Hmm, I thought it was Dublin 12, but Google seems to think Dublin 10.

RustyNut

Dero wrote: »

Here. Directly across from the Sheldon Park hotel.

Hmm, I thought it was Dublin 12, but Google seems to think Dublin 10.

Nice one. Oil be over in walkinstown later will head over there for a fill. Nearest Topaz to me is 122.

magentis

This is whats wrong though.The oil companies are whining about the tax take, but how can a 12c per litre difference be justified.They put the prices up in a flash.Not so quick to bring them down.

Special Circumstances

RustyNut wrote: »

If anything the government will take advantage and increase the tax on fuel as the cost price falls so the price will be stable at the pump but they will get a bigger take.

Probably not before the election tho.

10c emissions tax per litre on diesel to max the extra 10c charge on petrol? Or 10c on both?

smash

bear1 wrote: »

Now, I'm wondering at which point would the Government decide that they have no choice but to lower the tax on the fuel? Or is this even possible?

Considering that 60% approx is tax on the price we pay and petrol stations already struggle to make a profit on the fuel it sells, is there any likelihood of seeing fuel go to near 1e levels?

The tax take isn't the issue. Oil costs fcuk all right now and the oil companies are still charging a premium at the pump. That's the issue. They never dropped prices in accordance with the cost per barrel but if it goes up now they'll up the prices even though they're sitting on a massive stock that cost them less than $40 a barrel. They're raking it in.

Captain Chaos

Any yet Irish Rail and Dublin Bus increase fares year on year due to "increased fuel prices" yet it's lower than boom times when fares were much lower too. Who are they kidding.

shietpilot

smash wrote: »

The tax take isn't the issue. Oil costs fcuk all right now and the oil companies are still charging a premium at the pump. That's the issue. They never dropped prices in accordance with the cost per barrel but if it goes up now they'll up the prices even though they're sitting on a massive stock that cost them less than $40 a barrel. They're raking it in.

Avoid expensive petrol stations and they will lower their prices. If you only filled up at the cheap stations, the expensive ones would need to lower their prices if they want to survive.

smash

shietpilot wrote: »

Avoid expensive petrol stations and they will lower their prices. If you only filled up at the cheap stations, the expensive ones would need to lower their prices if they want to survive.

Right now, what's considered a cheap petrol station is still very expensive considering the cost of oil.

shietpilot

smash wrote: »

Right now, what's considered a cheap petrol station is still very expensive considering the cost of oil.

Well to me it seems like it's the only option we have right now.

Petrol stations are entitled to make a profit by selling things with a big mark up. The only thing that stops them is if they don't get a lot of buyers.

duffman3833

shietpilot wrote: »

Avoid expensive petrol stations and they will lower their prices. If you only filled up at the cheap stations, the expensive ones would need to lower their prices if they want to survive.

Gotta be careful on which "cheap" stations there are out there, cause you could get dodgy diesel, but if its like topaz, esso or any good branded stations will be fine

smash

shietpilot wrote: »

Well to me it seems like it's the only option we have right now.

Not really. The energy regulator needs a kick up the arse over this one.

bear1

shietpilot wrote: »

Avoid expensive petrol stations and they will lower their prices. If you only filled up at the cheap stations, the expensive ones would need to lower their prices if they want to survive.

I doubt that somehow.

ifeelstupid

I passed by Corrib Oil in Westport, Castlebar and Ballinrobe yesterday - all 3 on different prices with Westport being the cheapest, probably because the Texaco just up the road from it has lower price. How can one company justify 3 different prices within 20 miles of each other - all fuel would surely be coming from the same source at the same price.

Alanstrainor

I saw petrol at 124.9 last night. I wonder if we'll see it drop to below 120 any time soon?


:D:D:D:D:D

Or is that wishful thinking!?

Truckermal

Alanstrainor wrote: »

I saw petrol at 124.9 last night. I wonder if we'll see it drop to below 120 any time soon?


:D:D:D:D:D

Or is that wishful thinking!?

Happy days I can leave my car in power mode now...:D

Vic_08

smash wrote: »

The tax take isn't the issue. Oil costs fcuk all right now and the oil companies are still charging a premium at the pump. That's the issue. They never dropped prices in accordance with the cost per barrel

Care to provide a breakdown of these prices for us?

smash

Vic_08 wrote: »

Care to provide a breakdown of these prices for us?

You can find the figures yourself but here's a quick example I gave a while back, and oil is even cheaper now.

http://www.boards.ie/vbulletin/showpost.php?p=97789088&postcount=6483

Nody

Vic_08 wrote: »

Care to provide a breakdown of these prices for us?

I'll drop you a number in between; 67% is tax on fuel as per September this year according to AA. So that leaves 33% of the price to cover the fuel cost, refining, transport etc.

Vic_08

Nody wrote: »

I'll drop you a number in between; 67% is tax on fuel as per September this year according to AA. So that leaves 33% of the price to cover the fuel cost, refining, transport etc.

The % that is tax goes up as the base price goes down though, as the duty is a fixed amount and vat is charged on the base price + duty it is not a linear calculation.

There was a poster on here that gave a comprehensive breakdown some months ago and AFAIR proved there was not a massive increase in profit from the retailers.

Special Circumstances

http://www.pumps.ie/FAQPricesExplained.php

jimgoose

Vic_08 wrote: »

The % that is tax goes up as the base price goes down though, as the duty is a fixed amount and vat is charged on the base price + duty it is not a linear calculation.

There was a poster on here that gave a comprehensive breakdown some months ago and AFAIR proved there was not a massive increase in profit from the retailers.

pumps.ie has this handy page: http://www.pumps.ie/FAQPricesExplained.php

Special Circumstances

too slow goosie bai

jimgoose

Special Circumstances wrote: »

too slow goosie bai

Yerra the divil carry 'oo!

Vic_08

smash wrote: »

You can find the figures yourself but here's a quick example I gave a while back, and oil is even cheaper now.

http://www.boards.ie/vbulletin/showpost.php?p=97789088&postcount=6483

The problem with those figures is that the pump price is in € but the oil is in US$.

€1=$1.35 in Mar 2007
€1=$1.05 Dec 2015

Adjust those figures to take account of the exchange rates and they will not be so far off.

smash

Vic_08 wrote: »

The problem with those figures is that the pump price is in € but the oil is in US$.

€1=$1.35 in Mar 2007
€1=$1.05 Dec 2015

Adjust those figures to take account of the exchange rates and they will not be so far off.

They're still pretty far off. The dollar price is for a barrel, not a litre.

ShaunieVW

Exactly, the euro is in an awful state atm, in 2008 the dollar was weak and the euro was strong. No sign of it improving either.

corsav6

ifeelstupid wrote: »

I passed by Corrib Oil in Westport, Castlebar and Ballinrobe yesterday - all 3 on different prices with Westport being the cheapest, probably because the Texaco just up the road from it has lower price. How can one company justify 3 different prices within 20 miles of each other - all fuel would surely be coming from the same source at the same price.

The new dual carriage way will bypass topaz in Westport so I'd say their trying to hook some loyal customers now.
3 topaz stations in Castlebar and all 3 have a different price.

Edit: 4 topaz stations in Castlebar and only 2 have the same price for fuel.

Alun

There are so many factors involved in determining the final price of petrol at the pumps, some of which are fixed, and the actual cost of the raw ingredient, crude oil, in dollars is by far the smallest of those. Expecting the price of petrol to drop by, say 25% when the price of crude drops by the same percentage is being very naive, I'm afraid.

smash

Alun wrote: »

Expecting the price of petrol to drop by, say 25% when the price of crude drops by the same percentage is being very naive, I'm afraid.

Except crude oil has dropped by over 60%.

Alun

smash wrote: »

Except crude oil has dropped by over 60%.

I was just using the 25% as an example.The fact still remains that any percentage drop in crude prices will result in a much smaller drop in the cost of the end product, petrol, to the consumer.

shugy

good time to buy oil shares i would think. give it 5 years and theyll go through the roof again