Discussion in 'Current Affairs, News and Analysis' started by Norfolknchance, Aug 19, 2008.

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  1. Why is it that when the price of crude oil has fallen 23% from it's record high of $147 in early July to today's price of $113, I'm still having to fill up Mrs Chance's car at 113.9p per litre? In early July, I was paying 119.9p so why has the price not gone down 23% to somewhere around the 97p mark? :?

    Or is it that the oil companies are profiteering from Mr and Mrs Joe Public yet again? :twisted: And this bl00dy governement are quite happy as they rake in yet another few billion in VAT and duty.

    Rant over (for now!)
  2. Biped

    Biped LE Book Reviewer

    Because there's been no 23% fall in the price of TAX?
  3. Chanc,I think you have answered your own question.Still,keep smiling.When the present thieves and liars get ousted at the next General election,they will be replaced by more of the same.Why would any Gobment kill their Golden Goose.Get used to it,bend over and open wide.
  4. The prices quoted are usually 3 month advance prices so the price falls have yet to show through properly. Its not the oil companies that are raking it in, but Darling and all the other smug B'stards in government!
  5. Whilst It's true that the Government coins it in from taxing our fuel, it can hardly be said that £13.7 billion profit ( thats about £38 million per day) is not raking it in
  6. Biped

    Biped LE Book Reviewer

    That depends whether you factor in that 13.7 billion profit is divided by the number of oil companies and then by the number of countries in which they operate. These are GLOBAL businesses that make money in a large number of countries, and those quoted profits are the cumulative profit from the entire multinational company.

    Let's say for argument's sake that it's one oil company making that profit, but it works in 90 countries . . . . that's only 152 million profit for each country. Quite a lot you might say, until you consider the rake-in for this government (for just ONE of tyhe countries): 2006/07 - over 8 billion in tax revenue from oil companies alone, and just the ones operating in this country - That's Petroleum Revenue Tax, Supplementary Petroleum Duty, Mainstream Corporation Tax, Supplementary Corporation Tax.

    What do you think that 8 billion in tax revenue does to the price of fuel that we pay at the pump? That's right - we pay ALL of that duty levied on the oil companies, because these 'operating costs' are passed down to the customer, plus the directly levied 'fuel duty' and 'vat'.

  7. Thats's a fair point Biped. No arguments there. I'm just saying that it's not exactly chicken feed. I've always found it amusing though that as petrol is effectively a watse product of oil refining that it gets taxed so heavily. I also get a bit miffed that we get taxed on insurance (something that if you have to have if you drive. It just seems a tad off to me)
  8. Always the same BS from these companies. Its not our fault, we don't make any money from fuel, its the government tax, don't blame me etc etc.

    That £13Bn profit was for 1 company. Just the one.

    Its profits (note this is profits after tax etc) have increased by 9% on last year and it has increased very year since 2004.

    As to the rest of your post. Nice use of obfuscation there.
    You say that the profit is divided by the number of companies and countries but then forget to do the same thing with the tax the companies pay.
    You quote 8 billion in tax, but from how many companies?

    If as you say the oil company only made 152Million in profit from the UK
    then exactly how much did they pay in tax? Oh that right - nothing as we the customers pay all of it.

    Just because the government gouge us doesn't mean the oilcompanies are any better.

    If they were really so hard done by then they could use some of the obscene amounts of PROFIT that they make to cut the price.
    Oh I don't expect them to and why should they, this is capitalism at its best but I do wish they would stop pretending to be the good guys.
  9. Some of these oil companies shares are held by pension funds and as the make a worldwide profit this profit is funneled back to the UK/Europe,(and taxed) so we dont do to badly out of it.
    What is the price of litre of petrol without the tax? Isn't it something like 45p, Why should they subsidise a tax levied by a goverment that was elected by the British people. Do you expect your pub landlord to pay part of the tax on beer with the profits of his fruit machine? If the oil companies were losing money in other areas would you mind paying even more to subsidise them?
    There is nothing obscene about their profits its just business.
  10. In UK at least,fuel prices go up-to reflect what is happening in the world market.They always come down less slowly,when world market prices drop.It was ever thus.
  11. Biped

    Biped LE Book Reviewer

    As already pointed out Stephen - the average price for a litre of petrol in other countries (outside the EU) is something like 45 pence.

    Now, this is what the oil companies ACTUALLY charge the customer. In the UK, the difference between what the oil company is happy to charge, and what it has to to cater to OUR gobment's taxes is thus 68 pence per litre. That 68 pence is ALL UK taxes, and the other 46 pence is the price charged by the oil companies.

    So, there's been a 23% drop in the price of crude has there? Well, 23% of 45 pence is 10 pence. So, you might work out that the price at the pumps in the ?UK should come down from, say, £1.19 to £1.09 at very best from the highest price charged. You will note that even though the government charges more per litre of petrol than the oil companies do, and does nothing to mine, refine or deliver that fuel, IT hasn't dropped the fuel duty.

    You want to talk about disengenuous and obfuscation? I give you Gordon Brown visiting the Middle East (at our expense) to try and get OPEC to increase production so that ITS prices come down - as if the high price of a litre of fuel in the UK is all OPEC's fault.

    Well, speaking clearly, plainly and without obfuscation - 68 pence per litre, or the higher part of the cost has got NOTHING to do with OPEC, and EVERYTHING to do with this greedy, incompetent, lying, cheating. obfuscating and disengenuous government.