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Oil To Drive Inflation?

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I posted some of this under Jason's MPC thread but it was suggested it should be a seperate thread, so here goes.

Oil prices are up massively over the last two years, but petrol prices over here have not risen anywhere like as much. True we pay a lot of tax but even so petrol prices should have gone up. They have not because the pound has been strong over the same period, all but cancelling out the rise in oil prices.

If the pound falls now we will be exposed to the full price of oil and it could happen quite quickly. Since the pound started to fall recently and oil started to rise again I have noticed that the price at the pumps are going up quite quickly. If the MPC cut their rates too quickly I think we will see oil driven inflation, big time.

As a simple survey what is the price of fuel doing in your area?

I am in the Bristol / Bath area average prices are; Unleaded 87p, Diesel 90p, up 5p in a month.

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As a simple survey what is the price of fuel doing in your area?

I filled up yesterday in Rugby and it cost me 88.9p for Unleaded - and that was at a Tesco ! :huh:

Oh well at least I'm earning points on my Clubcard.... fortunately as well I don't have to drive great distances on a regular basis.

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I am in the Bromley/Lewisham area S.London average prices are; Unleaded 89.9p, Diesel 93.9p, up 7p in a month.

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Never mind oil, what about gas? Only a matter of time before what is left of heavy industry chokes on the banker's low inflation lie?

http://www.telegraph.co.uk/money/main.jhtm.../24/ccgas24.xml

<i>Whatever the eventual outcome of this, time is running short for Britain's manufacturing industry if it is to keep operating this winter. With forward gas prices for the winter trading at record levels, companies face having to pay substantially more for gas when they renew their energy supply contracts later this year

.....

The price of gas for delivery in the coming winter months is even higher. Earlier this month, the price for gas for delivery in the first quarter of next year reached almost £1 per therm. This compares with a price of around 32p per therm for gas last week. As a result, companies like Ineos Chlor, a multinational chemicals manufacturer, have decided not to commit to buying gas supplies for the winter months.</i>

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OnlyMe,

You are absolutely right regarding the price of gass. The UK is utterly unprepared for gass shortages. The race for natural gass that occured in the 90's is about to back fire big time.

The reason I highlighted oil, is simply because it is the one that is reported the most, and thanks to the car, it is also the one that most people notice everytime they fill up. It is a Sentiment Thing!

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Yep, gas and power price hikes are once again feeding through. This may have been posted (from Friday), but in case not..

http://www.sky.com/skynews/article/0,,30400-13397118,00.html

ENERGY PRICE WARNING

One of the UK's biggest energy suppliers has increased its prices for the fourth time in 18 months.

EDF Energy - which supplies five million customers under the London Energy, Seeboard and SWEB Energy brands - said electricity charges would rise by 10.7% and gas bills by 12%.

The company blamed the continued rise in wholesale energy prices, which last week prompted rival Powergen to increase its tariffs.

The price hikes, introduced on Friday, are the largest imposed by EDF over the past 18 months.

It last raised tariffs in January, when it increased electricity prices by 5.4% and gas bills by 8.1%.

As well as the rising wholesale market, EDF said a new emissions trading scheme to control carbon dioxide emissions had added an additional 12% to energy costs.

EDF, as a power generator, has to buy the right to emit CO2.

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Here in Devon it's 95p litre for diesel.

Petrol is for gaylords, trucks run on diesel!

sorry!

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Guest rigsby II
Here in Devon it's 95p litre for diesel.

Petrol is for gaylords, trucks run on diesel!

sorry!

Just been for a run out in Lincolnshire, mainly farming areas, some of the garages sell red diesel off the forecourt.

Black diesel 95p

Red diesel 45p

How many MPG you get out of a Massey Ferguson tractor ?

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;) AVTUR,

22p a litre. Plus no red dye in it either. Little bit of heavy oil mixed in prevents your fuel pump shredding itself.

Apparently. (So the bloke down the pub says so anyway).

B)

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Just been for a run out in Lincolnshire, mainly farming areas, some of the garages sell red diesel off the forecourt.

Black diesel 95p

Red diesel 45p

How many MPG you get out of a Massey Ferguson tractor ?

What you want is one of these,http://cgi.ebay.co.uk/ws/eBayISAPI.dll?Vie...6547970619&rd=1although this is not a good model IMO.

You can run on red, tax is free, no MOT required and a crew cab version is available to drop the kids to school.

You can also earn a living with it!http://www.unimogs.co.uk/showallstock.asp?...t1=View+Unimogs

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I filled up yesterday in Rugby and it cost me 88.9p for Unleaded - and that was at a Tesco !  :huh:

Oh well at least I'm earning points on my Clubcard.... fortunately as well I don't have to drive great distances on a regular basis.

$45 to fill on Friday up from $30 last year and I'm still quids in cos fat **** brown aint getting no tax from me.

I put $45 thru my truck every 2 days

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OnlyMe,

You are absolutely right regarding the price of gass. The UK is utterly unprepared for gass shortages. The race for natural gass that occured in the 90's is about to back fire big time.

As I've been saying since about 1992. :D

Seriously, we are going to be heavily dependent on gas as a replacement for oil for transport fuel, industry etc. It's absolutely criminal to be squandering the stuff to generate electricity.

Criminal to the point that it needs some sort of international protocol to phase out this practice before it leads us back to the Middle East / Russia and another war.

Oops! Might be too late with North America, New Zealand and the UK having already squandered much of their gas and talk of war with gas-rich Iran. That means that it makes even more sense to save what's left though.

Time to face the reality that our options are renewables, coal and nuclear and that we are going to need all of them at least for the next few decades. (Tar sands etc. are useful to help maintain oil supplies but we're extremely unlikely to produce enough (worldwide) to be considering going back to oil for electricity, industry etc).

Edited by Smurf1976

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Gordon always used to increase fuel duty in line with inflation.

Since the petrol protests, he's been too scared to do so. And with high crude prices, it's become even harder for him to twist the screw on motorists.

This is interesting because it means that the Government's revenue from fuel is not keeping up with inflation and is probably actually decreasing in nominal terms. GB is going to find yet another hole in his pocket.

Personally I favour high fuel taxes over other means of taxation: if fuel duty is high enough, all the chavs will be taxed off the road :)

Btw, don't forget that high forecourt prices are just one effect of expensive crude. Just about everything we buy/use depends on oil at some point (either it's made from the stuff or energy was used to make it and transport it).

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Gordon always used to increase fuel duty in line with inflation.

Since the petrol protests, he's been too scared to do so.  And with high crude prices, it's become even harder for him to twist the screw on motorists.

This is interesting because it means that the Government's revenue from fuel is not keeping up with inflation and is probably actually decreasing in nominal terms.  GB is going to find yet another hole in his pocket.

Personally I favour high fuel taxes over other means of taxation: if fuel duty is high enough, all the chavs will be taxed off the road :)

Btw, don't forget that high forecourt prices are just one effect of expensive crude.  Just about everything we buy/use depends on oil at some point (either it's made from the stuff or energy was used to make it and transport it).

He will be getting taxes from oil producers though. However, to the extent that rising fuel increases businesses' costs, corporation tax receipts will be correspondingly lower.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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