BOOMED : Petrol price falls to three-year low

[Spacecadet]

87.79?

I've been paying less than that for a couple of weeks now. It's been 85.8 - 85.9 here since before Christmas. The last time it was as high as 86.9 was around the 15th of December. It was 88.9 around the 8th, so assuming even interpolation between those dates, it was somewhere around the 87.8 mark on the 12th or 13th.

same where I am, most petrol stations are selling at 85.9

[Mich the Tester]

Britain must now have the cheapest petrol in western Europe. I paid 1.11 euros per litre this morning and that's the cheapest it's been in 6 or 7 years.

[BrilloPad]

I must ask the chauffer how much petrol costs round our way...

[fzbucks]

Good grief - is there any subject that AtWat doesn't talk out of his backside on???

The reason diesel is more expensive than petrol is simple supply and demand. Much of the growth in demand in China over recent months has been in diesel rather than petrol, and there is a shortage of refining capacity. So inevitably the price of diesel has risen faster than that of petrol because demand almost outstripped supply.

Another basic economic concept that flies over his head. I guess if we adopted the Euro the price of diesel would match that of petrol though.

So HMRC base their duty levels on China's hunger for energy?

Coal must cost a frikin fortune then

[ace00]

Britain must now have the cheapest petrol in western Europe.

Does now - here it's about 1 euro.
Undersea pipeline based plan B opportunity here I think.

[AtW]

The reason diesel is more expensive than petrol is simple supply and demand.

http://www.see-search.com/business/f...iceseurope.htm

For some reason in Europe price of diesel is lower - this data is for 2005, but observe that UK's price of petrol and diesel was at the time almost the same, where as in other places in Europe diesel was considerably cheaper than petrol in the same country.

Usage of diesel may indeed to be growing - this means oil compaines need to invest the money they get into new refinaries rather than pay them out as dividends.

[Sockpuppet]

Good grief - is there any subject that AtWat doesn't talk out of his backside on???

The reason diesel is more expensive than petrol is simple supply and demand. Much of the growth in demand in China over recent months has been in diesel rather than petrol, and there is a shortage of refining capacity. So inevitably the price of diesel has risen faster than that of petrol because demand almost outstripped supply.

Given that end product is usally refined in the country of use and not shipped round the world and sold (i.e. crude is traded not petrol) that argument doesn't stack up.

Yes China may have a lack of refining but that will affect China, not us. We refine the diesel we use - so demand for crude may change the price but that would also have some effect on petrol.

[dang65]

While drivers are benefiting, however, no gas and electricity customers have benefited so far from the plunging oil and gas prices on the wholesale market.

There is mounting pressure on the 'big six' energy suppliers to announce a price cut in the New Year.

How about all those transport companies that have spent the last few years putting up their prices every few days to compensate for fuel price increases? Are they dropping their prices now?

Hopefully we can look forward to a little less whining from "hard-pressed motorists" now as well. They might even be able to afford the parking prices now.

[Scotchpie]

Considering how much the price of oil has dropped and since the gas companies claimed that their prices were rising as the gas price is pegged to oil it's reasonable to question why the gas price hasn't dropped considerably recently.

Maybe because Russia doesn't want it to.

Link to BBC Report.

[Mich the Tester]

Maybe because Russia doesn't want it to.

Link to BBC Report.

Putin