UK petrol prices continue to rise

Discussion in 'Current Affairs, News and Analysis' started by PartTimePongo, Sep 5, 2005.

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  1. http://news.bbc.co.uk/1/hi/business/4215346.stm

    I'm confused, but I know some of you oil experts can answer this. Just why are UK prices going up?
     
  2. I'm not an oil expert PTP but from my very rudimentary understanding of business I believe it comes down to the market stability and the perceptions therein.

    With any major crisis comes a good amount of upheaval and by extension investors will get worried in the various markets. This could lead to an increased aquisition of resources to weather out the storm, no pun intended. So the stockpiles will be developed.

    I also remember seeing a chart online which tracked the cost of oil barrels in proportion to various world events or a bad nature. Every time something bad happens, the prices rise.

    It could also be OPEC being greedy but they come across as a quite sensible group to me. Especially when you bare in mind the prices they could go up to in proportion to the amount of the worlds oil they control.
     
  3. Buggered if I know but Diesel hit 99.9/litre here today.
    Also, why are there so many Supertankers anchored up & full of oil, that there aren't any available to move some of the European Strategic Reserve to the US?
    Greed by the Oil Companies must play a part - they're already coining it in from the more than doubling of their "cut" of the wellhead prices.
    The Chancellor is getting an extra 3p/litre in VAT.
     
  4. Some petrol pumps are being tweaked as they only go up to 99.99 pence!
     
  5. PTP, "Katie" shut down a great deal of US refining as well as a lot of production. Much of the production shutdown is temporary (workforce taken off the rigs pre-storm), but some is due to physical damage. Anyway, the crude shutdown is being made good by drawing oil from the Strategic Reserve. Some of the refineries, though, are flooded, and there's a shortage of capacity anyway. The problem isn't getting hold of crude oil, it's refining the stuff.

    Where is the nearest industrialised region with lots of oil refineries, that doesn't get its oil from the Gulf of Mexico? Europe. The Yanks are buying as much petrol and other refined products as they can over here for import. Which makes sense - almost half the cars in the UK are now diesels, but because this wasn't always so our refineries are set up to make more petrol than diesel (this is why diesel costs more), so there should be an exportable surplus. But it does mean the price is going up.
     
  6. As stated above, the problem is that a sizeable part of America's refininery network has been shutdown, leading to a reduction in the rate of petroleum products that can be made. This will impact upon the American economy for some time (at least until the refinery network is back up to previous output levels), and thus will also effect the world economy. Add to that the oil industry are still very nervous about disruptions to oil production, the prices go up as demand outstrips supply. We see this in the increased prices on service station forecourts, which i doubt will ever go back down below these prices as the OPEC and oil companies will conveniently forget to lower the prices once supply meets cemand (unless there is a sudden over-production)

    A_S
     
  7. Why should the price be rising now, when we are using the oil which was bought last month???
     
  8. Thanks Sparky , that's the crux of what I am driving at. Why are prices going up on oil that's already bunkered and refined. not in transit on the high seas. Why for example, have prices gone up by 0.2p in my local Tankstelle this morning , when they haven't had a new delivery since last Thursday?

    Has the price of crude gone up dramatically? I note the RAC are asking for a cut in duty. Ok, by all means the chancellor can cut duty , but what stops the producers "filling the gap" with a price rise?
     
  9. Prices are not based on what it cost to get in, but the price to replace it. The only saving grace is that as the US Dollar has weakened, due to this, the price has not risen even higher.
     
  10. Seems to me that the oil companies are just lining their pockets a bit more than normal.
     
  11. Slightly off-topic, but been looking at alternatives as prices go silly. Has anyone tried Biodiesel yet? Seems it's fairly easy to brew up at home, good for your engine & good (or at least a LOT less bad) for the environment. Also runs in completely unmodified engines & will mix with pump diesel in any proportions.

    Been costing it up & reckon in small batches it'll work out at between 20 & 40p a litre to make, depending on whether or not I can blag waste oil from my local chippy. Not totally convinced it will work, but seem to be a lot of people doing it, specially in the States (they reckon they can home brew it for as little as 60c a gallon over there!) Just need to get hold of some methanol & will run a batch to test.

    Main thing (until the Govt step in & make it illegal) is that it gives at least partial independence from ANY of the oil companies and I like that idea ;)
     
  12. Read somewhere that the pumps can't, or at least couldn't, handle three digit prices. ie .99 is manageable, but 1.01 falls off the end of the display.

    I do hope so.
     
  13. Didn't some guys get done for running there cars on chip shop oil a while back, somewhere up north if i remember correctly.
     
  14. Because if they weren't, you could make free money by buying the stuff now and selling it back to the garage...