Diesel prices are they dropping

[b0atman]

I run a diesel car and the pump price has dropped significantly with my Tesco discount I just paid £1:13 a litre not too long ago I was paying £1:34.

Has anyone noticed any drop in red diesel prices.

[craftycarper]

I run a diesel car and the pump price has dropped significantly with my Tesco discount I just paid £1:13 a litre not too long ago I was paying £1:34.

Has anyone noticed any drop in red diesel prices.

all fuel prices are dropping though it should have dropped faster and sooner as crude oil has been dropping for quite a while

[Southern Star]

For DERV this week I'm paying 97.41 pence per litre (ex VAT). I'd imagine red diesel is following the downward trend.

[Neil2]

The market is in free fall apparently, crude oil price has tumbled by 40% this year. There was talk of 35,000 jobs in the UK industry going earlier today. Falling prices might sound good but it's a short term thing. When the industry balances itself there will be fewer providers and the lack of ongoing investment will create a long term problem. Make the most of the low prices while it lasts.

[Guest]

The market is in free fall apparently, crude oil price has tumbled by 40% this year. There was talk of 35,000 jobs in the UK industry going earlier today. Falling prices might sound good but it's a short term thing. When the industry balances itself there will be fewer providers and the lack of ongoing investment will create a long term problem. Make the most of the low prices while it lasts.

Some political commentators claim that the falling oil prices signal much larger economical problems ahead (which means some don't of course.) Time alone will tell.

[Mickj]

we are buying red diesel at 51.50p per litre plus 5% vat at work this week

[Neil2]

Some political commentators claim that the falling oil prices signal much larger economical problems ahead (which means some don't of course.) Time alone will tell.

If the drop in crude oil prices tells us anything it is not to trust anything any "expert" says, ever.

 

Only a few weeks ago I heard some oil industry specialist tell us that Saudi Arabia was definitely up to something as they were not cutting back production. Now everyone seems to agree the whole thing is out of control and the Saudis have no idea what to do.

 

And what mention of this in the Scottish Independence issue? Those who forecasted that Scotland would become stinking rich overnight because of oil revenues carefully avoided mentioning what might happen if there was a sudden recession in the industry, yet the writing was on the wall well before September. The fact that the "No" campaign didn't mention it either tells you a lot about the quality of today's politicians.

[Guest]

If the drop in crude oil prices tells us anything it is not to trust anything any "expert" says, ever.

 

Only a few weeks ago I heard some oil industry specialist tell us that Saudi Arabia was definitely up to something as they were not cutting back production. Now everyone seems to agree the whole thing is out of control and the Saudis have no idea what to do.

 

And what mention of this in the Scottish Independence issue? Those who forecasted that Scotland would become stinking rich overnight because of oil revenues carefully avoided mentioning what might happen if there was a sudden recession in the industry, yet the writing was on the wall well before September. The fact that the "No" campaign didn't mention it either tells you a lot about the quality of today's politicians.

Yes, interesting times. It will be interesting to see how it all shakes down.

[churchward]

Some political commentators claim that the falling oil prices signal much larger economical problems ahead (which means some don't of course.) Time alone will tell.

I think it is true to say ALL fluctuations of significance in the market as a whole can have both positive and negative consequences.

 

I do think though that in the short to medium term lower fuel costs will have a positive effects on GDP for many countries and productions will rise. people could also be stimulated to spend more further encouraging a production rise. In fact it may all balance out as consumption meets supply of fuel and we reach an equilibrium on fuel costs. However, the risk of course is that productions and economies overheat and consumption goes to far and fuel prices rise dramatically possibly causing some markets to go into crash mode.

 

It is also true that a few large producers of oil in the middle east will decide on a whim to cut production at some point just as currently they have decided to maintain production levels in the face of falling demand. then again prices will rise again.

 

perm any one from ten the economics of all this has many variables and many possible outcomes and consequences.

 

I would expect some red diesel outlets on the cut will be slower to drop prices than the garage forecourt not for reasons of greed but just it can take a while to sell the diesel bought at higher prices i.e. it is a matter of turnover how fast the price drops. Mind you the falling prices have been going for a while now so it must be filtering down most places by now.

[NB Lola]

All depends on spot price purchases where you can agree a price for a set amount, whether in your tanks or not, yes it's a form betting

[Paul G2]

I think it is true to say ALL fluctuations of significance in the market as a whole can have both positive and negative consequences.

 

I do think though that in the short to medium term lower fuel costs will have a positive effects on GDP for many countries and productions will rise. people could also be stimulated to spend more further encouraging a production rise. In fact it may all balance out as consumption meets supply of fuel and we reach an equilibrium on fuel costs. However, the risk of course is that productions and economies overheat and consumption goes to far and fuel prices rise dramatically possibly causing some markets to go into crash mode.

 

It is also true that a few large producers of oil in the middle east will decide on a whim to cut production at some point just as currently they have decided to maintain production levels in the face of falling demand. then again prices will rise again.

 

perm any one from ten the economics of all this has many variables and many possible outcomes and consequences.

 

I would expect some red diesel outlets on the cut will be slower to drop prices than the garage forecourt not for reasons of greed but just it can take a while to sell the diesel bought at higher prices i.e. it is a matter of turnover how fast the price drops. Mind you the falling prices have been going for a while now so it must be filtering down most places by now.

 

The US has become a net exporter of oil in recent years. That's making a big difference on the international market. Saudi Arabia's break even point on oil is about $30/bbl, and they've said they have no intention of cutting production. Russia relies heavily on their oil income, and will probably increase production to make up for lower prices. There's a glut of oil on the market, and oil producers are unable to control production to create a shortage so they are selling more to make up the income loss. There has also been downward pressure on prices due to legislation in the US that prohibits much of the speculation in oil futures. That speculation was adding about 40% to the cost of oil.

 

Petrol prices here have only dropped about 20% - 25%. Funny how when the price of crude is going up, the price at the pump rises immediately, but when it is going down, pump prices remain stubbornly high.

 

This is a long-term situation that bodes well for everyone but oil producers and the environment. Although, if it puts the brakes on fracking and tar sands production, that would certainly be a bonus.

[churchward]

 

Petrol prices here have only dropped about 20% - 25%. Funny how when the price of crude is going up, the price at the pump rises immediately, but when it is going down, pump prices remain stubbornly high.

 

Indeed there does seem more inertia to overcome on lowering prices but it also has to be remembered that our forecourt price is only made up of around 28% due to the price of oil the remaining is mostly tax in some form or another plus the operating costs and profit margin.

[YamYam]

Think it will certainly bugger up the latest Osbourne maths esp if it doesn't improve soon

[ditchcrawler]

The TV said Petrol is below £1 20p Lt

[peterboat]

I am just going to order another 1000 litres whilst its cheap so will post how much it costs when I get the bill

 

Peter

[Southern Star]

The current price manipulation is simply designed to bring war between the eu and Russia closer, this being the long-term aim of the eu.

[Richard10002]

Fuel Duty is fixed at 58p per litre, so the Chancellor loses nothing here due to the reduced price. The fall from around £1.40 to £1.20 per litre represents a reduced VAT take of about 3p per litre.

 

Given that the Fuel Duty Stabiliser was on the basis that oil prices were high, it would not be inappropriate for The Chancelor to raise the duty by the 3p he is losing in VAT.

 

Thus it would be relatively painless for consumers if steps were taken to maintain the tax take from fuel.

 

The fact that business will find it less expensive to make and transport stuff means they will have room to either reduce prices, or invest more, or pay higher wages, or a bit of all three.

 

The Middle East producers will still be collecting more money than they could ever spend, Russia will be supplying as much as anyone can buy, so less danger of them restricting supply... Ditto gas?? Oil companies will still be making massive amounts of money, as they always did, no matter what the price of oil was.

 

Extemely simplified, but hard to see much if a downside from where I'm sitting.... Except that it might lead to interest rate increases sooner, rather than later, at which point some people will be screwed.

[Detling]

Paid 119.7 per litre of white diesel at Asda when I filled up the car today, I saw a few garages still stuck at 128.9 and suspect that many boat yards and marinas will also have the same problem, 'they have a huge tank full of diesel they payed for in September or August and the going rate is now lower than they bought at' so to sell they will have to make a loss on every litre. Or they can sit it out and see if they can sell it bit by bit to desperate users or wait till the price goes back up. Could make for an interesting few months in spring when we all start moving again.

[David Mack]

There's a graph of oil prices at boilerjuice.com, but I can't get it to display directly here.

 

 

[matty40s]

Russia is playing a dangerous game in the Baltic, they are also seeing the rouble in freefall because of the oil prices, both might be linked. Putin is not scared of playing dangerous games.....

[peterboat]

Russia is playing a dangerous game in the Baltic, they are also seeing the rouble in freefall because of the oil prices, both might be linked. Putin is not scared of playing dangerous games.....

Very true wait till he turns the gas off to europe and us on the coldest week this winter

 

Peter

[zigspider]

The current price manipulation is simply designed to bring war between the eu and Russia closer, this being the long-term aim of the eu.

Or more rightly, the long term aim of the US.

 

Jerry

[furnessvale]

Paid 119.7 per litre of white diesel at Asda when I filled up the car today, I saw a few garages still stuck at 128.9 and suspect that many boat yards and marinas will also have the same problem, 'they have a huge tank full of diesel they payed for in September or August and the going rate is now lower than they bought at' so to sell they will have to make a loss on every litre. Or they can sit it out and see if they can sell it bit by bit to desperate users or wait till the price goes back up. Could make for an interesting few months in spring when we all start moving again.

Happened to me, thankfully only once, where I was left high and dry with full tanks of 5000 litres when the price suddenly dropped.

 

Nothing for it but to bite the bullet, drop the price and get it sold ASAP.

 

George ex nb Alton retired

[matty40s]

I used to run motorway services stations and the staff were under strict instructions on price changes.

Rise, went up immediately notified - usually within an hour - so whatever was remaining in the tanks at lower price was clear bonus.

Drop, would not be actioned until the next fuel tanker was sighted coming onto the services with fuel at the new price, so minimal loss made.

The South side alone made over £60k profit on fuel price changes in one year......we were shifting massive volumes though.

[rogeriko]

My car and van both run on homemade Biodiesel, works out at about 30p a litre and thats with buying the used cooking oil on Ebay and the cost of the chemicals to process.