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Diesel drops 5p a litre overnight

Discussion in 'Motors' started by 233, 10 May 2011.

  1. Participant

    Caporegime

    Joined: 13 May 2003

    Posts: 31,973

    Location: Warwickshire

    It wasn't me that said 1 hour. Read the dialogue again (suggest slowly) and understand.
     
  2. ubersonic

    Capodecina

    Joined: 26 May 2009

    Posts: 21,087

    The petrol doesn't transport itself from the refinery to the station so the further it will be the more the cost to the consumer can be reduced due to reductions in product cost and delivery cost, some stations may also have been selling it at cost in the first place (hoping to make money from in store purchases whereas other make profit (and some supermarkets allegedly sell at a loss to encourage shoppers) so you can't really compare prices between two stations and claim a ripoff
     
  3. [TW]Fox

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 157,259

    The current fuel price drop is a loss leader by supermarkets to appear like the amazing champions of the consumer they like to pretend they are.

    In reality crude oil is bought on a futures market - for delivery in the future. It is quite true that Brent Crude for delivery in June is now some $15 off highs of just over a week ago. But it's not even been delivered to the refinery yet let alone refined into petrol and delivered to the retailer. The fuel they are selling now was produced using more expensive crude.

    If, and I say IF because I think its very unlikely, these lower oil prices are sustained for a few weeks, you should began to see reductions across the board towards the end of next month. Anything sooner is marketing, but to be honest once the market recovers from this blip we'll be crying about 140p a litre fuel again.
     
  4. Skeeter

    Caporegime

    Joined: 8 Mar 2007

    Posts: 37,148

    Location: Surrey

    I would rather pay a bit more and be literate...
     
  5. Rilot

    Don

    Joined: 18 Oct 2002

    Posts: 20,663

    Location: Wargrave, UK

    I just paid 140.9 for diesel at an Esso station in Bracknell. That was just to top the courtesy car up.
    I noticed that the price of petrol there was unchanged though at 135.9
     
  6. [TW]Fox

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 157,259

    The price drops by the supermarkets are confusing - they've slashed 4p or so off diesel bringing it to just 1p above petrol. Now i'm unaware of anything that would cause a fall in wholesale diesel and not petrol, so is this simply for maximum 'wow, the supermarkets are great' effect, given it's diesel which was the most expensive?

    As none of them are benefitting from the oil price drop yet as they'll not be buying refined fuel made from the cheaper oil!
     
  7. The Edge

    Soldato

    Joined: 18 Oct 2002

    Posts: 5,730

    Location: Birmingham

    What about the end of winter and less diesel/parafin/kerosene being needed for heating?
     
  8. [TW]Fox

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 157,259

    Not reflected in previous years - this time in 2008 diesel was a staggering 10p a litre+ more expensive than petrol.
     
  9. The Edge

    Soldato

    Joined: 18 Oct 2002

    Posts: 5,730

    Location: Birmingham

    true, but i think back then diesel users were being had. maybe the suermarkets have seen an opportunity?

    I paid £1.35.7 tonight i think.
     
  10. [TW]Fox

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 157,259

    The problem with diesel is, as I understand it, that they are horrible ratt... no wait wrong rant :D the problem with diesel is that it is a byproduct of the petrol production process, so you cant make more diesel without making more petrol, which is why the price difference began to grow when demand grew for diesel - to make more diesel meant making even more petrol, which often wasn't possible.

    I don't think this has changed?

    I think its about time the government recognised the health issues caused by the high levels of pollutants in diesel and taxed it significantly more to encourage people to drive cleaner petrol cars, but that would involve giving up the curious opinion that all that matters is CO2 ;)
     
  11. Chris1712

    Sgarrista

    Joined: 29 Jul 2004

    Posts: 9,362

    Location: Somerset

    I concurr, add in the horrific noise pollution aswell which I'm sure can be taxed!
     
  12. Simon

    Capodecina

    Joined: 21 Oct 2002

    Posts: 23,965

    Location: Berks / Moscow

    Direct injection gasolines are no better than diesel for PM, infact the PM matter is smaller so penetrates deeper into the lungs.

    EURO6 may call for GPFs to be fitted to gasolines
     
  13. jimblowscash

    Wise Guy

    Joined: 18 Apr 2006

    Posts: 1,174

    Location: london

    I have just paid 152.9p pltr at south mims BP for diesel

    oh and all of the major oil companies just posted record proffits....
     
  14. The Edge

    Soldato

    Joined: 18 Oct 2002

    Posts: 5,730

    Location: Birmingham

    That is also true, and would justify the assymetry of the prices at that time. However surely now, two years later, with a majority of new cars still being diesel there would be even more surplus petrol and an even bigger gap in price? Unless petrol users are now being had of course?