To illustrate what happens, let’s go back to this time last year when the price of a litre of petrol was around £1.33 – in other words, before the prices fell. Needless to say, prices remain far higher than they were as recently as early 2009, when one litre was 87p on average. The taxes that the UK government make up 60% of the price of a litre of fuel, which means that those taxes are making your petrol more than two and a half times as expensive to buy. Reply ... Also, last time I checked, their 99RON was 16p/l cheaper than Shell V Max Nitro+ Plus fuel save or whatever it's called nowadays. RACV vehicle engineers say average petrol prices are influenced by an underlying increase in oil prices. This may well be the case but it is difficult to verify, especially since all cars are slightly different when it comes to which fuel performs best. Petrol prices leapt to the Rs 85 per litre mark in New Delhi and so we are paying almost half the money that we feel have the money of the cost of petrol is for taxes. 1. TAX. In the summer of 2012 they were more than three times the American gas price and more expensive than coal. It’s no surprise that 7 out of the 10 cheapest countries for petrol are in the oil-rich Middle East, with the vast majority of the oil coming from the area. Since the Automobile Association (AA) feels this is something each driver ought to be educated about, it has distributed a breakdown to teach shoppers on how the fuel cost is resolved, and where the cash from fuel demands is designated. Does anyone else notice this with BP garages in their area? In the last month the oil price has been around what it was at the start of the year and the pound is almost on a par with what it was. Since the start of the year petrol was going up about a penny a week. In the case of Stornoway and the Shetland Isles the expensive petrol can probably be explained by all these factors and also by the fact that the petrol has to be transported across water. But one need not be a radical cynic to see that the real scandal is how the taxman has further increased its share of pie as the price of oil has fallen, and how it has barely cut its tax take despite the big slide in the price of oil. We are paying 3298 per liter, petrol as taxes alone and 3183 as taxes alone. The stark reality is that even if there were collusion of some sort – and again, that is entirely unproved – the worst case scenario probably would be that prices are 1p-2p too high some of the time, a trivial problem compared with 79p “overpricing” caused by taxes. This is a ludicrously high percentage. In recent months, South Africans have felt the frustration of rising petrol and diesel prices that have made travel far more costly. Petrol suppliers are 'dishonestly holding back' savings from the pumps, campaigners say. “There are a number of factors, like the exchange rate and oil prices. Money off Vouchers Since then, the price of petrol has dropped by 9p, almost all of which has been absorbed by the private sector and very little (bar a dip in VAT) by the Treasury. However it is suprising that this whole process isn't the most expensive part of petrol! a price of 148p/Litre in July 2011 which was a whopping 12p a litre more than the national average and the Shetland Isle prices were breaching 1 pound fifty for unleaded petrol. They need to explain much more clearly why they are changing their prices, or keeping them constant, and divulge more information about profit margins. At the moment, oil prices are high. Covid-19 variants: Are new mutations more deadly, and will vaccines work against them? But the last thing anybody needs is yet more useless, disruptive, top-down bank break-ups that don’t really change anything or more inane, demagogic banker-bashing. On balance, this latest inquiry is likely to be nothing more than a costly waste of time. In this article, we’ll be taking a closer look at just why petrol is so expensive in the first place, and how you can budget effectively should petrol prices increase in the future. A pint is ~570ml, but round down to 500ml. Why fuel prices have become so expensive. The petrol is so cheap that petrol smuggling is a mult… They also tend not to pick up as much 'cross-selling' of products such as snacks and groceries thus eating into their profit margins further. Needless to say, none of these figures include the massive tax that the Government grabs on oil companies’ profits. 1. Without the taxes petrol would be no where near as expensive as it is at the moment. I just don't get how they think it's worth so much more! Why the cost of petrol won't follow the collapse in oil prices Only 12.3p of the petrol price is based on the oil price By Jonathan Jones 21 April 2020 • 1:02pm Despite George Osborne’s best efforts, petrol retailing remains a joint venture between the taxman and the private sector, with the latter merely a minority shareholder. There have often been cases of a weakening sterling cancelling out entirely a drop in the price of oil. The last time the Government tried to increase the price of fuel there was national riots. It is no wonder, therefore, that the critics are out in force again, egged on by vote-hungry politicians keen to be seen to be tackling the cost of living crisis, and arguing that the petrol market is somehow rigged or cartelised. Why Is Petrol So Expensive? So when you start talking about .410,28 and 16 ga. shells in general they can be more expensive depending on how you buy them Yet it is the politicians who are taking the moral high ground, and pinning the blame for high prices on the private sector. The price of petrol peaked at £1.42 a litre in April 2012, according to petrolprices.com, before sliding back; it hovered at around the £1.30 level for much of this year, falling to an average of £1.297 in August, £1.291 in September and £1.267 in October. When will schools reopen for primary and secondary pupils - latest updates on coronavirus lockdown. There are just claims and no proof. The Treasury is still collecting 58p from duty, its take from VAT has dropped slightly to just under 21p, the oil companies get just over 40p (which means that their revenues are down by around 17pc) and the retailers still make around 5p. Fuel prices have breached record highs in the national and financial capital on Tuesday. Petrol is made from oil, which is dug up from the ground, often underwater, and then transported halfway across the world. I have long thought that full bank account portability, allowing customers to keep the same account number despite moving between banks, would help. These expensive petrol brands claim to offer a better quality fuel and sometimes even more miles to the gallon out of their standard petrol. The rural petrol prices may be high because there is a captive market there and so the fuel stations can easily extract more money from the motorist who doesn't have any other choice. Petrol is made from oil, which is dug up from the ground, often underwater, and then transported halfway across the world. Every consumer that purchases petrol ought to be given an itemised receipt that very clearly shows just how much tax they have paid, and how little money has gone to the retailer. Despite George Osborne’s best efforts, petrol retailing remains a joint venture between the taxman and the private sector, with the latter merely a minority shareholder. They feel that, as a rule, prices at the pump tend not to be cut fast enough whenever the price of oil actually falls, even though prices are (supposedly) hiked immediately whenever the price of oil rises. The really big issue is tax. The quick answer is that the most expensive petrol is often in Stornoway or the Isle of Lewis. Unless you’ve already made the switch to an electric (or hydrogen fuel-cell) vehicle, the regular schlep to a petrol station is an inescapable and expensive drawback of owning a car. For the 4 days or so I have been keeping an eye on the petrol prices in Melbourne. Across the road is united and Caltex and they charge 110.3 (mind you these prices were there for the last 3 … Good morning bravastar1: I don't think many will disagree that the two most popular gauges are 12 & 20. If the Competition and Markets Authority felt like being brave, it would find that the real impediment to competition in banking is the practice known as “free banking” – the fact that costs are hidden and that in-credit banking is often unpriced, subsidised instead by overdraft charges and hidden gaps between the rate at which money is lent out, and the interest rate paid on deposits. For a start, what matters is not the price of oil – but its price in sterling. Bizarrely the UK is the only developed Country whereby diesel is the more expensive of the two fuels.The answer isn’t pretty. By far, the number one reason oil prices are so expensive is simply supply and demand. On current pump prices, tax accounts for 63.4pc of the money handed over by motorists. Natalie Brown. Shell charges are way more than the current market prices for fuel. There is also still a case for reforming the payment infrastructure to make it easier for new banks to enter and to ensure it isn’t biased in favour of the old clearing banks. I put it to you, why is petrol so cheap? If oil is so cheap why is petrol still so expensive? At the same time the prices in Snowdon national part were only 5p more expensive than the national average. In London, and other parts of the country, it's not unheard of for pints of beer to be £5. My local BP charge more than 5p per litre than anyone else in the area. Just before I go to my conclusion, I also like to tell you that the tracks on patrol was 948 per per when the government to cover office in 2014, and that diesel was 356. Shell has also been always active in their marketing, making me feel that Shell is indeed a superior and reputable fuel brand. It makes sense for the drop in the price of petrol to be a little less than the drop in the price of oil, even excluding exchange rate effects: the latter is a raw commodity, the former a product that requires various extra inputs and costs to turn into its final form. 13 votes, 17 comments. then the oil price was climbing and the pound to dollar rates were more in favour of the dollar. I honestly have no idea why it's so expensive in Adelaide, I live in Ballarat (100km+ away from Melbourne) with just under 100,000 people and LPG here is 52cents pretty much everywhere, the 20ish servos in town are all pretty comparable (with Caltex/Supermarket-Servos usually being abit more) petrol is … UK quarantine hotels: how will they work and what do new rules mean for holidays? It still costs a fortune to fill up one’s tank, but prices have fallen noticeably, thanks to a large drop in the price of oil. Here's why filling up your car keeps getting more expensive. However some rural places are more expensive that others, for example Stornoway on the Isle of Lewis in Scotland boasts (?) Fuel is essential and an increase hurts family budgets and contributes to the cost of living. As I said, it may be that petrol prices could have fallen slightly more quickly, though nobody has yet proved this allegation. Why is … They point to the price of oil, down by around a quarter since June, and compare it unfavourably with the 6pc or so drop in the price of petrol during the same period. Countries such as China drastically increased their intake in the 2000’s. Petrol Prices As a result, one ought to expect only a small proportion of any fall in the price of oil to filter through to the cost of petrol. Its hardly suprisingly that petrol is expensive when you think about it like this. The best way companies can fight back is by being more transparent. The news has been slightly less miserable of late for motorists and any business that uses buses, lorries or vans. Cheap? But the reality is that the market is giving customers what they want, even if the outcome is inefficient: the public would be enraged if it were forced to pay a fee for every bank account and every cash machine transaction. That means that fluctuations in the value of the pound against the greenback matter just as much as changes in the price of oil itself, which of course is priced in dollars. Why is petrol so expensive? In fact, some of this is clearly happening today: The value of the pound has just slumped to a 14-month low against the dollar, partly as a result of strong employment figures from the US, which is always bad news for motorists. The common petrol oil company petrol brands tend to have the most expensive fuel, with the likes of BP and Shell charging on average around 2p more than the national average, compared to the supermarkets that charge around 2p less than the national average. However it is far more likely that a combination of higher overheads and lack of negotiating power with the oil companies is the real culprits. When it comes to reducing costs, opting for cheaper supermarket unleaded is a convenient way … Why Petrol And Diesel Are So Expensive There has been 77% slump in price of Indian basket of crude oil from $132.47/barrel in July 2008 to around $30/barrel currently… Lola Nayar 08 February 2016 I have been a faithful user of Shell, partly because my company sponsors me a fuel card that happens to be by Shell. To find the most expensive petrol in the UK you tend to have to look at the more rural areas, generally if you find yourself in a remote part of the countryside with only a couple of independant garages to choose from then you can expect to pay a lot more for your petrol. They need to demonstrate, time and again, that the taxman is the only real price gouger. For example, shell charges 132.9 for unleaded 91. On current pump prices, tax accounts for 63.4pc of the money handed over by motorists. Our horrendous tax rates are the real reason why petrol is still so expensive. Over time many countries around the world have increased and decreased their thirst for oil. Drivers in the South American country of Venezuela pay an unbelievable 2p for a litre of petrol – a whopping 6700%less than drivers in the UK! Somebody may one day be able to prove or demonstrate this, of course, and anybody guilty of breaking the law would have to be prosecuted severely, but so far the empirical evidence has been entirely lacking. The oil is then refinedin petroleum so that it is suitable for use in a car, before being transported to the garages where you buy it. HustleRussell. For many Venezuelans, access to cheap petrol is considered a birthright. That now makes a litre of beer £10. No politician would ever ban “free banking” and introduce fully transparent pricing. 4 Reasons, Why is petrol so expensive in South Africa : #PetrolPrice It is safe to say that you are asking why is petrol so costly in South Africa? What we usually see in this debate is lots of emotion and an insufficient understanding of how petrol prices are actually determined. Petrol prices will hit an 11-year high this long weekend. So if the pound falls in value, the price of petrol on sale in the UK would go up; and vice versa. Fuel prices have breached record highs in the national and financial capital on Tuesday. The more remote petrol stations also tend to suffer from a low volume of customers so their overheads as a proportion of sales are much much higher than a petrol station on a busy A-road. The increased oil price affects the wholesale price of refined petrol and has a flow-on effect at the pump. If you require any petrol pricing information then please contact us, Sitemap ©Whatgas.com 2003-2018 Disclaimer Contact Us Use our Data Privacy. When the [Australian] exchange rate depreciates, it will increase the prices of imported petrol,” said Abbas Valadkhani, a … Why is petrol so expensive right now? And why is petrol so expensive right now? So there are a number of reasons why Britains fuel prices are higher overall, but these haven’t yet explained why is diesel more expensive than petrol in the UK? mind you. 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