Petrol Prices

[duncan]

quote:Originally posted by Big Col

Hmmm...it seems my point has flew over a couple of heads. Of course I don't think that the cost of canned fish is in any way liked to the cost of petrol. I was saying exactly the opposite. I wasn't being obtuse I was being facetious and was trying to say that paying less for shopping doesn't make me feel any better about spiralling fuel costs as I don't think the reduction in one compensates for the increase in the other. I wasn't saying the facts in Duncan's post were incorrect. I was saying that one fact had no bearing on the other.

Flew over heads, or not very well put, perhaps?
If the money in your pocket at the end of the month is still the same after fuel price rises, then they certainly do have a bearing on each other; other prices have lowered and your no worse off.

[Big Col]

I understand the point you're making Duncan. I just don't think it's correct. As I said, I don't think the reduction in one compensates for the increase in the other. One has no bearing on the other. The cost of food or other shopping items has no direct link to the amount that people pay on petrol each month. If petrol goes up in price shopping does not come down by a proportional amount to compensate. They are independent of each other. Agree to disagree is the way forward I reckon. :)

[The Dogfather]

Question! - Won't higher fuel prices put up the price of a tin of tuna - higher cost for the boats fuel, higher electricity bills for the canning plant and higher costs for the transportingall contributing:question:

Looks like your shopping will also be costing you more very soon as well

The Americans pay far less for their fuel as there is less tax on it, we pay a heavy slice to the government in duty. SC will know the current duty level of fuel. As a result alternative fuels will become increasingly popular, LPG has only a very small amount of duty so is much cheaper (around 37p/litre) even though the raw material is the same. LPG is also less prone to price rises as there's far less demand for the fuel (although my Omega seems to be drinking a fair old amount)

Current demand for petrol/diesel is almost outstripping supply capacity especially given the reduction in refinenary capacity caused by Katrina which is causing a bit of a bottleneck at the moment. The short-term bottleneck will be removed as there are numerous refineries under construction (overseas) so prices may drop for a brief spell however the trend will be for ever increasing pump prices as China and India become more industrialised and their needs for fuel increase and crude oil the raw material will become more valuable.

[Julz]

I also want to moan that I now pay £85 per month for kerosene instead of the £50 I had been paying up until June!!:mad:

[duncan]

I'll agree to disagree, as IMHO the costs are linked, and not completely independant.

I would agree that Oil Prices rising does not mean shopping decreases in price. Infact its more likely that shopping would rise due to the increased transport and production costs.

However, Shopping costs are coming down, as i said earlier, due to the emergence of greater volumes of Chinese and other Asian imports, which in turn is driving an economic boom in China, which in turn makes oil consumption in developing nations like China rise, making prices of oil rise.

[The Dogfather]

Duncan - Nice but flawed arguement, the protectionistic EU will block cheap imports with quotas and given that most shopping (food etc.) is UK or EU based you'll be paying more overall.

Also the main reason for China's increased oil demand is actually for their own domestic market not to produce knickers for M&S.

[Julz]

quote:Originally posted by bad dog mini

not to produce knickers for M&S.

Must admit, that made me giggle!!

[duncan]

quote:Originally posted by bad dog mini

Duncan - Nice arguement, however the protectionistic EU will block cheap imports with quotas and given that most shopping (food etc.) is UK or EU based you'll be paying more overall.

Yep, agree there, Food shopping would be more likely to rise overall due to this.

The Northern EU countires seem to be wanting to cut the restrictions of cheap clothing imports from China. Is this something to do with these countries having higher fuel costs, and if the cheap clothes dry up, inflation will rise higher? This is again why I feel that all these prices are interlinked to some degree.

[duncan]

quote:Originally posted by bad dog mini

Also the main reason for China's increased oil demand is actually for their own domestic market not to produce knickers for M&S.

Why has the level of the Chinese domestic market risen? No doubt through the levels of exports, which in turn raises the wealth of the nation, to enable them to spend more at home.

Same as how Britain became rich through the "workshop of the world" period in the 19th Century, and the US in the 20th. You export more, the domestic market develops, and gets better off, fueling greater demand from the home markets too.

[Scottie]

quote:Originally posted by Julz

I also want to moan that I now pay £85 per month for kerosene instead of the £50 I had been paying up until June!!:mad:

who do you buy your oil from:question: Don't worry don't want your business as BP don't do mainland. Depending who you buy it from I may be able to get it at cost for you any wee bit helps.

p.s. Oil companies just love planned payment they will be adding anything between 5ppl to 6ppl on because of it.

they think that they have your business now and won't loose it.