Why is petrol so slow to go down and very fast when they put the price up? Government dont complain,more money

Answer 1

I have often wondered this, seems to rise by 4p then down 1p then up 5p down 2p, i remember filling my MTX 50cc motorbike with 34p a litre leaded fuel imagin that nowerdays.

And yes the goverment does get the money, the oil companies get something like 2p a litre the goverment takes something weird like 65% tax

In Europe fuel is around 1 Euro a litre and in the US its £1 a gallon which is 4 litres! (ie they get 4ltrs to our 1ltr)

This country is way to expensive, and just think about this, you get taxed on your wages that you earn and then to actually get to your workplace (assuming you drive) you then get taxed on the fuel to get there, what a load of S**T.

Not to mention the VAT on goods, after you have been taxed on your wages!!!

I think england is fast becoming the most taxe'd nation in the world!

Answer 2

Around 70% of the price of petrol is tax. So the government do make a lot of money from fuel sales.

I'm not sure why you think it goes up quickly but down slowly. Personally I've found it fluctuates a lot and has been going up and down recently.
The variations are to do with the price of crude oil, from which petrol is derived and competition. Over the last few years the price of crude oil has gone up by huge amount which is why petrol was very expensive. However recently it has come down again as the supermarkets started a price war. It's now around 90p a litre for premium unleaded which isn't bad. At the end of the day comnpanies like shell and BP need to make a profit on fuel sales. It is irrelevant how much money they are making elsewhere, no company would use profits made in one part of the business to bankroll selling products for a loss in another. As crude oil is very expensive and will remain so for some time Petrol is likely to remain at the 90p or over mark for some time.

Edit:
the price of oil is around 60-70 Us dollars a barrell at the moment. Around 5 years ago it was about 30. So a 100% increase in 5 years. Inflation over the same period will have been around 15%.

Answer 3

The only money the government get from petrol is the tax they put on it, that doesn't vary, the rest of the increases is from the companies, based on supply and demand, and on the cost of the crude oil on the market. If they have had to pay 35 dollars a barrel for the 2,000,000 barrels they have in transit, and the price goes down to 33 dollars, then they are going to use all they have bought at the higher price and charge accordingly then only when they start selling the petrol for the oil at the lower price will they pass it on, this is why it can take a while for the decrease to take place. Increases are down straight away so they can make more money.

Answer 4

on an identical time as accepting that gasoline accountability is a rip off you may't blame New Labour for the extensive develop over modern months, that is all the way down to the oil agencies who see the united kingdom as a funds cow. income have dropped as call for dropped - so they simply placed the cost up. some months in the past we've been instructed diesel become extra costly thar petrol because it cost extra to produce - now the cost is the comparable as call for for diesel has dropped. there is not any doubt that a litre will hit £a million.20 by ability of January. that is £a million.05 now and international call for is beginning as much as upward push. we've yet another 1p upward push in accountability next April plus the return to 17.5% VAT to bypass on in January. Petrol become 85p on the beginning up of the 12 months. yet, as typical the British inhabitants will shrug their shoulders, moan lots - and then pay it. that's what the government and oil agencies anticipate - and why they get away with it.

Answer 5

In the north east petrol has steadily been going down.The goverment do not get the money, the petrol companys are rolling in it.

Answer 6

because petrol is declining comodity