GT190
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Registered: 6th Dec 07
Location: Greater London
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quote:
Originally posted by Ian
How exactly do you propose to draw the line? This isn't a luxury good which people have a choice about buying...
exactly, all the petrol threads are stupid.
petrol is an inelastic good, whatever the price the people will pay (to an extent)
govt has no reason to put it down.
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by John
Naa there will be big changes soon, this place is full of people just ready to burst and I think it will be big style, the government are making a big big mistake.
Everything they tell us is all propaganda and people are slowly realising this.
Only thing im realising is im giving the government £40 a week tax every week just to make it to work & back home.
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John
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Registered: 30th Jun 03
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quote:
Originally posted by Colin
quote:
Originally posted by Robbo
Cease the oil futures market and hey presto fuel will be down to 60p a litre within minutes 
 Explain?
Fuel is the price it is mostly because of the futures market, the other part being the tax on it.
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by Colin
quote:
Originally posted by Robbo
Cease the oil futures market and hey presto fuel will be down to 60p a litre within minutes
Explain?
The ONLY thing driving up the price of fuel are speculators... speculating on how much gas/oil etc. will be worth in 10 years time... there is no real shortage (danger of it anyways) and no shortage of supply... the weak dollar and economic problems ahve meant people have invested in oil and gold to secure their cash as safe... more purchasers = prices goign up... that is the sole reason for whats going on
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Robbo
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Registered: 6th Aug 02
Location: London
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http://en.wikipedia.org/wiki/Price_of_petroleum
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ed
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Registered: 10th Sep 03
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The government can't afford to put it down either. In fact, it's OPEC who have set these high prices. Saudi Arabia is upping fuel production in efforts to bring the price down, but it's going to take more than one nation to up production to solve this global problem. Yes, guess what, it's a global problem, not 'the government being wankers and not wanting us to drive' like the comic books you lot all read are saying.
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Robbo
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Registered: 6th Aug 02
Location: London
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http://en.wikipedia.org/wiki/Futures_contract
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John
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Registered: 30th Jun 03
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quote:
Originally posted by ed
The government can't afford to put it down either. In fact, it's OPEC who have set these high prices. Saudi Arabia is upping fuel production in efforts to bring the price down, but it's going to take more than one nation to up production to solve this global problem. Yes, guess what, it's a global problem, not 'the government being wankers and not wanting us to drive' like the comic books you lot all read are saying.
It is, them and the futures market, the rest is what they want you to think.
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Robbo
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Registered: 6th Aug 02
Location: London
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OPEC don't set prices, they control supply etc.
Financial markets set the price of oil... be it Brent Crude or Sweet Brent whatever etc!
[Edited on 17-06-2008 by Robbo]
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by John
quote:
Originally posted by Colin
quote:
Originally posted by Robbo
Cease the oil futures market and hey presto fuel will be down to 60p a litre within minutes
Explain?
Fuel is the price it is mostly because of the futures market, the other part being the tax on it.
Never heard of it, my understandings petrols costs £1.26 a litre because the duties 65p with 17.5% tax ontop (87p of the 1.26?), the other 39p's shares sparingly between oil company (product cost/profit), transport & garage profit.
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ed
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Registered: 10th Sep 03
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Fair game. On another note, it's probably more of a problem that inflation is at 3.3% now.
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John
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Registered: 30th Jun 03
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the tax is a massive massive amount, the barrel prices are because of the futures market though.
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Robbo
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Registered: 6th Aug 02
Location: London
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Nope Col... the markets determine the price of oil... the extractors sell/deliver to the oil companies at that price, duty gets whacke don, VAT on top + overheads etc and you have the petrol price
Fuel duty is a %age of the price then VAT on top
[Edited on 17-06-2008 by Robbo]
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dan-h
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Registered: 28th Jan 06
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biggest scandal of fuel pricing is the fact that the fuel is loaded with duty (or tax) and then you get a final nett price.
then the government add a further 17.5% in vat on top, so effectively you are paying tax on top of tax
the UK is the only country that does this to my knowledge, how they can justify making their public pay tax on top of tax is impossibe, it actually goes against the guidelines of the VAT principle.
so in effect you make your wages and get taxed on that, an average of 28%. so for every £10 you make you pay £2.80 in income tax. This leaves you with £7.20. you then buy £7.20 worth of fuel, which is made up of around £2.94 worth of actual fuel. £3.19 is then added in tax which makes the total up to £6.19 and with vat added you are back to the £7.20.
so in all, from the £10 you earned to buy fuel you end up with £2.94 worth 
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Robbo
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Registered: 6th Aug 02
Location: London
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Agreed, VAT on fuel should be removed as it is technically illegal
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by Robbo
quote:
Originally posted by Colin
quote:
Originally posted by Robbo
Cease the oil futures market and hey presto fuel will be down to 60p a litre within minutes
Explain?
The ONLY thing driving up the price of fuel are speculators... speculating on how much gas/oil etc. will be worth in 10 years time... there is no real shortage (danger of it anyways) and no shortage of supply... the weak dollar and economic problems ahve meant people have invested in oil and gold to secure their cash as safe... more purchasers = prices goign up... that is the sole reason for whats going on
Riiiight so US refinery fires & gulf closing production, UK Brent dwindelling production, Nigerian attacks on pipelines/Hostile rig boardings, general trouble in the middle east, iraq etc (situations were experiencing today!) have NOTHING to do with oil price its all down to some yesmen deciding how much it will be in 10yrs time
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John
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Registered: 30th Jun 03
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UK brent isn't dwindelling colin.
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Robbo
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Registered: 6th Aug 02
Location: London
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Well the speculators speculate on what effect those issues will have on the price in, say, 10 years time and adjust accordingly... that has zilch to do with the actual cost of gettign oil though
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by ed
The government can't afford to put it down either. In fact, it's OPEC who have set these high prices. Saudi Arabia is upping fuel production in efforts to bring the price down, but it's going to take more than one nation to up production to solve this global problem. Yes, guess what, it's a global problem, not 'the government being wankers and not wanting us to drive' like the comic books you lot all read are saying.
Oils running out, the government are happy its soaring in price - I dont read comics
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Robbo
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Registered: 6th Aug 02
Location: London
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It doesnt cost Shell out in the North Sea anymore to extract their oil just because some oil pipelines in Nigeria had to shut for a few days does it... and thats the key
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ed
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Registered: 10th Sep 03
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I'm going to start hedging my fuel 
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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Should be less than a quid.
Corsa 2.0 16v Vegas - Sold
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John
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Registered: 30th Jun 03
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quote:
Originally posted by Colin
quote:
Originally posted by ed
The government can't afford to put it down either. In fact, it's OPEC who have set these high prices. Saudi Arabia is upping fuel production in efforts to bring the price down, but it's going to take more than one nation to up production to solve this global problem. Yes, guess what, it's a global problem, not 'the government being wankers and not wanting us to drive' like the comic books you lot all read are saying.
Oils running out, the government are happy its soaring in price - I dont read comics
It will most likely run out evntually yes but nowhere near as soon as they'd have you think.
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by John
UK brent isn't dwindelling colin.
I think you'll find it is, look at how many barrels their lifting today comared to past years, there still oil there just smaller reservoirs, more difficult & expensive to extract it from.
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John
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Registered: 30th Jun 03
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Thats what they'd like you to think.
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