Are petrol prices actually reducing in line with falling oil prices?

[taxman]

Well it's nice to see First and Stagecoach reducing their fares. After all increased fuel costs was a reason they gave for putting them up so logically falling fuel prices should also result in an adjustment to fares.

[biotechpete]

The price of oil has dropped to half what it was a few months ago. The price of petrol/diesel dropped to around 114 a litre generally. But in some garages it has begun to creep back up yet the price of oil is still dropping. Asda and Tesco is 111.9. as it has been for some weeks. Yet some garages such as the Esso Garage at the Altas Junction in Brinsworth just up the Bawtry Road from Tinsley is 115.9 !! yet one a mile away it is 112.9.

Can anybody explain why the drop in prices of raw oil isn't being passed on to us poor motorists especially by some garages such as the above. Are they just fleecing people ?

 

See post 23. But for the sake of it.

 

Brent crude is on the up at $53.65 / barrel. That's £35.39 at today's exchange. So there are 159ish litres in a barrel making the crude price 35.39/159 = 22p /L. The drop in crude price is about 47% from last year (47p/L).

http://www.bbc.co.uk/news/business-31093215

 

Given at the high point the fuel cost was about 60p of the price of the fuel. So if that dropped 47%, the fuel cost would be 31.8p at the very minimum. Add duty, fixed at 57.95p, add 5p delivery and retailers margin, VAT on the total 94.75p = 113.7p so the drop is being passed on.

 

---------- Post added 03-02-2015 at 22:08 ----------

 

Just to add, to see prices go below £1/L crude will need to come down to around $40 a barrel at today's exchange. If the $ exchange improves the price will need to drop less to about $43-45

[Obelix]

The price of oil has dropped to half what it was a few months ago. The price of petrol/diesel dropped to around 114 a litre generally. But in some garages it has begun to creep back up yet the price of oil is still dropping. Asda and Tesco is 111.9. as it has been for some weeks. Yet some garages such as the Esso Garage at the Altas Junction in Brinsworth just up the Bawtry Road from Tinsley is 115.9 !! yet one a mile away it is 112.9.

Can anybody explain why the drop in prices of raw oil isn't being passed on to us poor motorists especially by some garages such as the above. Are they just fleecing people ?

 

It's 108.7 and 102.7 for diesel and petrol in Leeds. Sheffield always did have high fuel prices, for reasons that I never could understand.

[-Boomer-]

ahem http://www.mirror.co.uk/news/uk-news/oil-prices-rocket-4-month-5583361?ICID=FB_mirror_main

[Kidorry]

It appears to me that the fuel prices go up every year as soon as the holiday season starts and people use their cars more.Also i think we are the only country in the EU where diesel is dearer than petrol.https://www.drive-alive.co.uk/fuel_prices_europe.html bearing in mind that in France they do not pay a road tax as such because I think it is in the price of the fuel.

Edited April 26, 2015 by Kidorry

[kidneystone]

Fuel at Handsworth Asda today....

 

99.7p for petrol

 

103.7 for diesel

[biotechpete]

Yep and Brent is below $45 with WTI at under $42/barrel.

 

---------- Post added 09-12-2015 at 12:39 ----------

 

I heard today that pump prices are expected to drop below £1 / litre widely, as Brent crude drops to around $40 / barrel.

http://www.theguardian.com/money/2015/dec/09/petrol-for-under-1-a-litre-rac-predicts-after-plunge-in-oil-price

 

With the oil price predicted to stay low, I wonder if the Chancellor might increase tax on it in the near future.