UK petrol prices continue to rise

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

UK petrol and diesel prices continue to rise in the wake of Hurricane Katrina, with the average cost of petrol now at 94.6 pence a litre.
The average cost of a litre of unleaded petrol rose by more than 2p over the weekend from 92.3p on Friday, according to figures from industry body Catalist.

Average diesel prices now stand at 97.3p - up from 95.8p - and are expected to top £1 in the coming weeks.
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.
 
#6
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.
 
#7
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
 
#9
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?
 
#10
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.
 
#12
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 ;)
 
#13
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.
 
#14
Didn't some guys get done for running there cars on chip shop oil a while back, somewhere up north if i remember correctly.
 
#17
The arab countries are running at full production, and while Russia is running at about 75% of full capacity it cannot store it or ship it out fast enough (not enough capacity in its pipelines). China and India are currently buying all they can get their hands on which means that there is strong demand in a market with little room to increase supply.

The main reason why demand is still outstripping demand in Europe is because the EU has grown tremendously in economic terms since the early '80s, and car ownership has more than tripled since then. Problem with this is that the environmentalists have prevented any new refineries being built in the last 25years!

The only long term solution is newer and more efficient refineries (they cost about 2billion euros each) and improve the supply chain from Russia.
 
#18
sparkysapper said:
Didn't some guys get done for running there cars on chip shop oil a while back, somewhere up north if i remember correctly.
Probably because they didn't pay the "duty" to HM Customs. Yes, if you are honest you will pay around 45p per litre with a percentage going to JMC (they get you every time), if you are not quite so honest then you pay whatever for the stuff from the super market. It is not illegal to use it in you motor.

JJ
 
#19
sparkysapper said:
Didn't some guys get done for running there cars on chip shop oil a while back, somewhere up north if i remember correctly.
And the fact that it is effectively bypassing the tax man, so it's more or less guarenteed to be made illegal or taxed in the very near future. :roll:
 
#20
Well folks, its about time they started opening up some of the railway lines that Mr Beeching shut in the 60s, and got proper, clean and reliable public transport running again.
 

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