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Petrol At £1 A Litre (again)


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are the price of petrol included in RPI/CPI?

If so with food prices still going up and lower mortgages highs out the calculation later in the year, are we gtd to get RPI back up at 5% later in the year?

No fuel will be substituted for something else..... erm trainers, or hydrogen. Deflation it is. :unsure:

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No fuel will be substituted for something else.....

exactly.

heating oil will get replaced in the 'basket of goods' by something like photovoltaic cells. then as the price falls so does inflation.

like freerange chickens replaced battery chickens, a 2quid chicken becomes 8quid without any change in inflation.

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I tend to keep an eye of this site, as a general indication of inflation.

http://www.petrolprices.com/

needless to say in january petrol was 92p or so, march 95p, today its 99.8p and im sure within a week it will be a quid.

..yes it has been there before... but this time its different... it will carry on going up, ?1.10 by september and ?1.15 come the winter (again).

deflation? not likely :rolleyes:

Interestingly Diesel hasn't gone up that much.

The price differential between petrol and diesel peaked at about 15p a litre.

Now its down to about 4p a litre.

So Diesel has been protected from the worst of the rises by this.

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Baltic Dry Index and commodity indices on the march again.

Time to convert QE into raw inflation.

does that mean things are starting to move and sell again?. I thought the ships were just about paying people to move stuff a few months ago.

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Guest มร หล&#3
does that mean things are starting to move and sell again?. I thought the ships were just about paying people to move stuff a few months ago.

No it means excess capacity has been removed from the shipping fleet.

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does that mean things are starting to move and sell again?. I thought the ships were just about paying people to move stuff a few months ago.

There is only so far you can run down inventory and China are securing as much raw material supply as is sensible, playing the long game again. The most inefficient shipping may never get back into service, which is as it should be whereas new build has been pegged back significantly. The problems with the letters of credit system seems to have largely cleared now as well.

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In terms of inflation it matters not what the price of petrol is, what matters is what the price is compared to 12 months ago.

June 2008 was when petrol prices peaked at �1.50, so petrol is still 1/3 cheaper than 12 months ago, and this is hiding inflation in other areas.

Of course, fuel prices dropper of pretty quickly after that, dropping well over a third in 6 months, bottoming out in January 2009.

I don't recall petrol hitting £1.50 a litre last year - highest I saw it at was about £1.25 with diesel at £1.35.

There was expected to be a very large deflationary effect in the next few months as last year's bubble in oil prices worked it's way out of the figures.

There still will be downward pressure on annual inflation over the next few months but as long as prices stay where they are now, ~£1 a litre, it's not going to be nearly as pronounced as the deflationists thought it would be. And that deflationary effect will have shook itself out by September so expect to see upward moves in year on year inflation then unless 'at the pump' prices collapse again.

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Guest มร หล&#3
My view too. Oil market is fixed as we know. Temporary bounce before the next wave down imho.

Now apply the same down-sizing of production capacity to all things. Can't see deflation lasting long.

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Now apply the same down-sizing of production capacity to all things. Can't see deflation lasting long.

Having seen the commodities rout production investment will likely stay down for fear of the same happening again, plus most of the investment has and is being slushed to the bankers. The Chinese will carry on though, the more production they can crowbar from the US/West the better off they will be when they hold a good level of leverage both economically and militarily over the rest of the world.

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This fuel $h1t is a load of B0ll0x,

People are pleased because it's not as expensive as it was 12 months ago. Wake Up!, Petrol is ridiculously expensive!, as someone else on here posted, approx 70p in every £1 you put in your car is Double Tax; VAT and Fuel Duty...it's completely extortionate!

If people are p1$$ed off with the price of fuel instead of moaning about it to whomever will listen why don't they do something proactive about it?

Scenario:

Unification of the Country's worker bees...Everyone who uses a car to commute to work every day simply calls in work on Monday morning to say that they are not going to be in work, (could be a sickie, car's broken down...whatever, when the real reason is because it's too expensive to get to work).

Now if you imagine even half of the Country's workforce not turning up for work on Monday how that would impact on the economy. Say this happens for a couple of days in a row...the Country's losing Billions a day in lost revenue and profit from industry as no-one is willing to pay ridiculous prices just to get to a job which they are probably only doing to pay the Government a quarter of their take home pay every month.

After say 3 days without half of the Countrys workforce doing their job, the Government is informed of the reasons why and has no choice but to reduce the level of Tax levied on fuel purchases or incur the wrath of less and less production and throughput for the Country, thus causing them to lose far more revenue than they would take at the pumps...

Remember People, there are more of us than them...we have the upper hand as we have strength in numbers and we are the ones who make the money for this Country...not them, we need to take control of this Country and stand up for things that we feel are right and oppose the things we know are wrong...(this being one of them).

The Government would have no choice but to reduce Tax and Duty...what are they gonna do instead? Sack the entire workforce for not turning up for work? and lose even more money in the process? They need us more than we need them...I think they need to be reminded of this fact.

All it takes is a little bit of organisation, on our own we are powerless...that's why they all congregate together so they outnumber us unless we all stand together and orchestrate this properly...

Oh, and the Diesel thing...a mere by-product of the distillation process to obtain petrol so Diesel shouldn't cost anything at all as it costs nothing extra to extract...

mspL4

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It is going up a further 2 per cent in September. Nothing to do with the price of oil - which is lower than it was this time last year - it's the lovely Alistair Darling putting an additional 2 pence on fuel duty. It's then going to rise EVERY YEAR. Even if the price of oil does not increase, fuel will rise every year because of the robbing b4stards, sorry, I mean delightful government.

For every pound's worth of gas you put in your tank, about 70p is government taxation (fuel tax and VAT) and 30p is for the fuel itself.

That's 30p of fuel for every pound you spend at the pumps!

Don't forget that the 30p also contains a tax componant in the form of petroleum revenue tax as well as the incidental taxes such as PAYE and NI along the supply chain.

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Guest eight
Now if you imagine even half of the Country's workforce not turning up for work on Monday how that would impact on the economy. Say this happens for a couple of days in a row...the Country's losing Billions a day in lost revenue and profit from industry as no-one is willing to pay ridiculous prices just to get to a job which they are probably only doing to pay the Government a quarter of their take home pay every month.

The CBI would claim that it had cost the country £87BN.

Nobody else would notice the difference.

eight

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$66 dollars a barrel - feck! How do you invest in oil?

Seriously, think I'll join the rally through to about 90$ then get off the train!

A bubble worth being a part of!

Any bubble is worht being part of, just got to judge when to get on and off!!

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