We are bracing ourselves for yet more rises in petrol prices. Just over two years ago petrol in UK hit a record 1.20 per litre, with oil also a record $1.47 per barrel. Now oil is just over 0.80 per barrel, still off it’s peak, but petrol is setting new highs…So, the question is, what exactly drives the price of petrol?
Pound Vs The Dollar
For one thing, wholesale gasoline is also on the rise. Another, gasoline is bought in US dollars, and if the pound is low against the dollar we have to pay at an unfavourable exchange rate.
As stated, the price of oil drives many things, but how far can it go? If the current trend continues are we looking at £5.00 for a bag of crisps? They say no tree grows to the sky, but in this case maybe the sky itself is not the limit…
That dreaded word again…Having come from South Africa on a recent trip I discovered they are paying 7-8 Rand per litre, which is currently around 0.63-65 per litre, roughly half what we are paying here in UK.
In the last three years alone we have seen a number of fuel tax rises. The argument has often been in UK we need to fund the NHS, as we do not pay for medical treatment here. In 2001 we saw picket lorry drivers blockading roads in protest at fuel tax, and the government was forced to freeze fuel tax. Why then, have we not seen similar protests since, are we drowning in our own apathy?
We are advised to pick very carefully where we buy petrol from. Supermarkets such as Asda and Morrisons are cheaper than other filling stations. YET, when I fill up at Morrisons my car does around 40-50 miles LESS on a full tank. So, if it’s cheap it’s cheap for a reason. It simply is not worth going to Morrisons to fill up with that mile per gallon reduction.
Tips to recuce rip off’s, here is a great site I found with helpful suggestions, not only fuel, but a range of services:
Strap yourself in for the ride. If it’s any consolation, we are all riding together…
Photo by mikecogh of flickr