How long until we see €2 a litre and will it push more to EV's faster?

YFlyer

https://www.boards.ie/discussion/comment/118759537#Comment_118759537

Wow. That is mental. Can see people taken out the ole bicycle for shorter journeys.

https://www.boards.ie/discussion/comment/118759749#Comment_118759749

There is, I included that in the total excise.

The 64cent excise is made up 54c non carbon and 9.5c carbon.

All numbers rounded.

https://www.boards.ie/discussion/comment/118759769#Comment_118759769

51.5% on a €2 litre of petrol

Citrus_8

https://www.boards.ie/discussion/comment/118759566#Comment_118759566

Don't forget that crude oil price is in US dollar while currently Euro is getting cheaper against dollar meaning that it's getting more expensive to buy crude oil with Euro than before which will absorb any little price drop so no, don't give any hopes. Price is increasing too rapid (one drop in 10 days and 9 days rapid increase).

waterwelly

https://www.boards.ie/discussion/comment/118759696#Comment_118759696

Why would you be inclned to think that?

It's in response to barrels of oil going up significantly over the past week or so.

Citrus_8

https://www.boards.ie/discussion/comment/118759792#Comment_118759792

And the rest half is even before sites pay VAT, wages, electricity and other costs. There's very little profit from fuel in retail. That's why food, drinks and snacks are more expensive - to have a reasonable profit, similar to convenience shops.

I was coming back from Limerick to Dublin last Friday and stopped in Kildimo for petrol rather than use Applegreen on the motorway. Price was €173.9 and I remember laughing when I was paying saying "I never thought I'd be saying €173.9 was the best value diesel around"!

God be with the days!

Rootsblower

https://www.boards.ie/discussion/comment/118759731#Comment_118759731

I would respectfully disagree with your logic. If you buy Brent or West Texas Intermediate crude today at the spot price of $110, it’s for a may delivery. The fuel being delivered to Irish fuel stations over the last 2 weeks was bought as crude oil in December or even earlier at between $65-$73 per barrel. Unless the fuel delivered today was drilled up Monday, refined on Tuesday and delivered today the $110 price per barrel shouldn’t be seen until May. If a company can do this they should be running the country they are that efficient.

macvin

https://www.boards.ie/discussion/comment/118758946#Comment_118758946

Unfortunately that's not how it works. Diesel (Heavy Fuel Oil) and petrol (gasoline) are traded commodities in their own right.

Massive unexpected demand due to people worrying about shortages and filling kerosene tanks and car tanks when they don't really need to do so has meant that the market is searching for supply and paying a premium.

Prices in Germany hit €2.40 today for diesel, here in Portadown one station has gone from £1.62 yesterday to £1.799 today.

Normally it tracks oil prices, but we're not in normal times. Seems that southern Ireland will have some of the cheapest petrol and diesel prices in Europe from tomorrow.

macvin

https://www.boards.ie/discussion/comment/118759436#Comment_118759436

Similar in northern Ireland, England, France, Germany, Italy, Spain etc etc.

Every news report in those countries is about the huge and sudden jump today and yesterday.

The world has gone mad.

Dempo1

https://www.boards.ie/discussion/comment/118759731#Comment_118759731

A that old chestnut, mysterious deliveries in the middle of the night , now seriously, pull the other one 😳

I know for a fact , my local station got NO delivery this week and put €0.06 cent on the pumps Tuesday night, and i have since checked with a neighbour who works in an outlet in my nearest town ( 2 owned by one company) and they also got no delivery and put their prices up at 7am this morning .

I've heard this nonsense before and it's frankly beggars belief 😳

There's been literally 100's of reports of forecourts across the country attacking the maggot and its utterly disgraceful.

Citrus_8

https://www.boards.ie/discussion/comment/118759928#Comment_118759928

Fuel price in Ireland in this industry is structured based on Platts price. So it's not JUST the end product price. Calculation formula is more complex. That's why sites are quick to react to the price - due to the way price is being calculated in this market. Let say, without Platts, Ireland being in the island, when crude oil is so expensive, company orders a ship of fuel, it takes weeks to get to the terminal. Let say, until it reaches Ireland, global crude oil price drops. People would expect that fuel to be cheap, but company already put big money into that order so it wouldn't make sense. That's one of the reasons to look at Platts.

saabsaab

It looks like the 20c reduction was counter productive. It only encouraged a faster rise in prices and won't really reduce the cost at all. Reminds me of the new house grants just increasing the house prices.

Citrus_8

https://www.boards.ie/discussion/comment/118760036#Comment_118760036

That's correct. A waste of state's money and just the show to public that the government's does 'something good'. Fuel price from last week already increased by more than 20c before reaching sites! (and they still need to make margin) so these 20c has been eaten by increases in the global price already. It's no good for industry at all, as it puts more pressure for fuel sellers to not increase price us people don't really watch crude oil price and don't want to understand this 20c is long gone.

Government should have made a 60c reduce - that would have made an impact. But 20c - no. Next week we won't even remember this.

macvin

https://www.boards.ie/discussion/comment/118760036#Comment_118760036

I'll repeat what I said above. Prices jumped dramatically today and yesterday in EVERY European country.

I'm in northern Ireland. It is £1.86 in my local BP station. Same station was £1.79 earlier today and £1.66 yesterday.

In Germany it has gone from €2 last week to €2.40 today in some places. They are looking at drastic measures - introducing a 100kmh limit on autobahns!!!!

The beauty of Google is you can check prices anywhere.

People are panic buying. That is the cause of the inordinate jump in diesel.

Citrus_8

https://www.boards.ie/discussion/comment/118759985#Comment_118759985

People panic buy now too! So if site see that they are running low and delivery is after a few days only, then they of course will increase price to cover the loss while they will be dry.

saabsaab

https://www.boards.ie/discussion/comment/118760068#Comment_118760068

Even 60c would be a mstake.

Citrus_8

https://www.boards.ie/discussion/comment/118760100#Comment_118760100

It would cost the state huge money but would make an effect for a month, maybe two. And what's next? No real help to the economy, more harm actually. Ireland is too small to make an impact to this global price change.

Rootsblower

https://www.boards.ie/discussion/comment/118759827#Comment_118759827

The fuel in service station tanks was not just delivered into Ireland yesterday and drilled the day before. As I have already stated I have no problem paying more when the stuff costs more. The problem most people have is that prices rise instantly as the price of the raw material increases. This shouldn’t be so sudden if we keep being told it takes 5-6 weeks for the change in crude prices to be felt at the pump, cos if the price of crude fell to $50 tomorrow for delivery in May you can be damn sure it’ll be at least May before that price is reflected at the pump.

Rockets and feathers

Larbre34

No need to organise a lower speed limit, I don't know about everyone else, but I've noticed so many private cars cruising at 80/90 km/h on 100/120 stretches this week, its absolutely remarkable. Its so much more relaxing too, 1500 rpm, in 6th Gear, the big Green E on my digital dash board telling me I'm achieving 3.0 litres/100 km.

The key to this thing is economising and planning journeys and then the price relief should be held back for commercial and agricultural uses, those which are unavoidable.

In the meantime, probably should change the thread title to €3.00.

Dempo1

https://www.boards.ie/discussion/comment/118760097#Comment_118760097

I'm not at all sure what your on about, Panic buying 🤔, the only panicing going on is the price of fuel , this is not a crisis (at the moment) of shortage of fuel , were are you seeing Panic buying in Ireland, have I missed something 🤔

I'm not sure people here, trying to understand how the market operates, wholesale pricing etc, they are more concerned at how prices at the pump are crippling them and this on top of the cost of living increases , its not just about fuel prices.

You also seem to be in denial price gouging went on over the past 24 hours, it did and its not the first time either.

waterwelly

https://www.boards.ie/discussion/comment/118760137#Comment_118760137

Who keeps telling us it takes 5-6 weeks for changes to be seen at the pumps?

Citrus_8

https://www.boards.ie/discussion/comment/118760137#Comment_118760137

I already mentioned above that price in Ireland is structed based on Platts. That's the industry's standard in Ireland to make better profit. This allows to have a better network of garages in the state. Otherwise, if prices are based on the end product price, we see less profit, less garages... Ireland generates quite low traffic into the garages due to being an island. Let say, in Europe there is a lot of traffic between countries, lots of lorries etc... it gives a better profit. Cars don't fit a lot of fuel so it's not a big profit. Platts pricing helps a little bit for this type of business.

mikeecho

I've been buying extra fuel for the past 4 weeks, this Russia /Ukraine thing has been going on for a while now with troop build ups.

I've got ~300L diesel and ~80L petrol stored, along with two full cars.

Did I panic buy, No.

Did I stategticaly buy over a longer period , Yes.

I started buying, a little extra every week, long before the massive hike in prices.

I advised a few others to do the same, but it's only in the last few days they are looking for drums to store diesel/kero.

macvin

https://www.boards.ie/discussion/comment/118760137#Comment_118760137

Any decent business will operate on a replacement cost.

So if you are told that delivery from tomorrow is 10c higher, you'd be needing to change price today.

Watch tomorrow when excise reduction takes place.

Assuming it works the same way as northern Ireland, fuel is in bond until it is in a tanker. But that would still leave 2-3 days for some garages as most get 2 deliveries a week, but many hopefully will change price immediately.

I'm hoping to fill up in Monaghan tomorrow evening and expect your duty drop will show.

Citrus_8

https://www.boards.ie/discussion/comment/118760153#Comment_118760153

There is no gouging. Prices should be higher than they are now, sites are currently sacrificing their profit, and I'm not sure how long it will last. It's a usual thing in retail. Retailers never quick to increase price at same level costs increases. They wait long and nobody wants to be first. Look yourself the crude oil price changes and take a calculator ;) There is panic buying at some locations, some sites ran out of fuel at the weekend. Some heating oil delivery companies cancelled deliveries as they can't cope with demand either (read about this in another thread in this forum where someone complained about heating oil price)

TheTruth89

https://www.boards.ie/discussion/2058231385/how-long-until-we-see-2-a-litre-and-will-it-push-more-to-evs-faster

Where we gonna get the electricity or the infrastructure to support a mass influx of Electric cars?

VAT is charged on the excise duty and carbon tax, so the 20c per litre reduction should actually equate to 24.6c.

When VAT on hospitality was reduced during Covid I noticed a good few establishments that didn't lower their prices, so pocketed the 4.5% VAT reduction. Then when the rate went back up from 9% to 13.5% there signs up saying due to recent change in VAT prices have increased blah blah.

Plenty of opportunity for gougers to gouge, and they will.

macvin

https://www.boards.ie/discussion/comment/118760137#Comment_118760137

Probably delivered 3 days ago and left a refinery last Thursday or Friday. It's that quick. Refineries set the prices for refined fuels. They are profiteering just as the shipping companies were blatantly profiteering with high shipping costs last year.

In the overall scheme of things, very little is held by the suppliers in the country. That's why there was a massive shortage last week and you couldn't buy more than 500l of kerosene anywhere on the island.

Citrus_8

https://www.boards.ie/discussion/comment/118760204#Comment_118760204

It's not gouging. It's just using an opportunity for businesses to cover their loss to survive. Covid period in hospitality industry was basically a 2 year long dry losses. I'm amazed so many business actually managed not to bankrupt. VAT reduction wasn't meant for customers. It was for businesses - to help them survive. Government understood that, businesses understood that. Why consumers don't understand? Because not all of them have studied economy, some of them have never even been to any college/university.