Diesel prices below €1!

highdef

Looking on pumps.ie, I see that the price of a litre of diesel has dropped below €1 (99.9c to be exact) in 3 stations in Boyle and Ballina. I've noticed in the NW part of the country has been getting cheap since the Corrib oil plant went into action.

It's been many a year since I saw fuel that cheap. Long may it last.

bruno1x

When oil increases in price it goes up like a rocket at the pumps, when it falls in price its is like a feather slowly falling. The oil companies must be making money hand over fist the last few months, oil is now below $30 a barrel and it is still priced the same at the pumps as when it was up at $80.

highdef

The main reason for such a slow fall is that the government take on a litre of petrol or diesel is static....it's not a percentage of the current cost of oil. The following link should provide a bit more insight with regards to the breakdown of who gets what amount of money per litre:
http://www.pumps.ie/FAQPricesExplained.php

Geuze

highdef wrote: »

L I've noticed in the NW part of the country has been getting cheap since the Corrib oil plant went into action.

Local competition is the reason for low prices, not the natural gas flowing from Mayo.

eeguy

bruno1x wrote: »

When oil increases in price it goes up like a rocket at the pumps, when it falls in price its is like a feather slowly falling. The oil companies must be making money hand over fist the last few months, oil is now below $30 a barrel and it is still priced the same at the pumps as when it was up at $80.

It's not so easy to look at crude costs and relate it to pump costs.
There's a supply and demand at the refinery and transport stages that influences refined fuel costs.

It may be cheap to extract, but more expensive at various stages of the process.

L1011

bruno1x wrote: »

When oil increases in price it goes up like a rocket at the pumps, when it falls in price its is like a feather slowly falling. The oil companies must be making money hand over fist the last few months, oil is now below $30 a barrel and it is still priced the same at the pumps as when it was up at $80.

Your memory is crap. Oil was last $80 in mid 2014, when diesel was roughly 1.45 a litre.

Oil hasn't been over $60 in a year.

Since the last time oil was this cheap, there has been significant moves in the $-€ exchange rate, 4c on petrol and 10c on diesel between duty and carbon tax.

Tarabuses

highdef wrote: »

The main reason for such a slow fall is that the government take on a litre of petrol or diesel is static....it's not a percentage of the current cost of oil. The following link should provide a bit more insight with regards to the breakdown of who gets what amount of money per litre:
http://www.pumps.ie/FAQPricesExplained.php

The question arising isn't the cost of a litre as such but the fact that some garages don't seem to react very quickly to reduced oil prices.

D4 Fuels in Ballsbridge is now selling diesel for 99.9c per litre whereas others not much further along the road are still charging 117.9c. And they still have customers!

Avatar MIA

Tarabuses wrote: »

The question arising isn't the cost of a litre as such but the fact that some garages don't seem to react very quickly to reduced oil prices.

D4 Fuels in Ballsbridge is now selling diesel for 99.9c per litre whereas others not much further along the road are still charging 117.9c. And they still have customers!

To make it even more confusing. Different fuel stations will pay different prices for their supplies, even among the same brands. The guy selling it for €117.9 may be making the same cent per litre profit as the 99.9c guy.

Unlikely in this case though as that's a massive difference.