Oil is bought by dollar. When pound was weak against dollar, prices rose. Pound is now very strong against dollar, yet prices have rocketed recently. WHY!!!
2007-12-13 02:12:29 · 27 answers · asked by Ken 1 in News & Events ➔ Current Events
The highly populated nations of India and China are undergoing an industrial revolution so the demand for oil has increased significantly. This has much greater influence on the price of oil than the sterling/dollar exchange rate.
Also the tax on oil varies (as a multiple) depending on the base price. So an increase in the price of the commodity is compounded by proportionate increase in tax. The oil producers are making less money from UK consumers than the government from every litre bought.
2007-12-13 02:24:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The price of petrol at the pump, is somewhat determined by the people who refine it. It comes out of the earth as crude, remember.
Anyway, the price of petrol has ALWAYS been equal to the average pay for an hourly paid worker.
Back in 1972, a gallon of petrol was 33 pence, and my wage per hour as a factory worker, was about the same.
2007-12-13 10:27:34 · answer #2 · answered by ? 5 · 0⤊ 0⤋
Oil is pushing towards $100 per barrel, and will eventually get there.
That's close to £50.
Refinery is a contributing factor to petrol prices. EPA in US has fought against new refineries for years. And it takes nearly 10 years to build one.
Global demand is the real culprit.
2007-12-13 10:25:58 · answer #3 · answered by ed 7 · 0⤊ 0⤋
Don't blame taxes, Don't you remember last year when Tony Blair told us that we're suffering from global warming so he has to raise the taxes, The very next day it snowed! Raise taxes on petrol and the pollution will reduce and more oil will be found. Sorted
2007-12-13 10:17:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You expect oil companies to pass on the benefits of favourable exchange rates? I don't think that is likely.
Also, I'm not an expert but I don't think much of the oil in the UK comes from the US, I expect most of it comes local sources such as off-shore rigs around the UK.
2007-12-13 10:17:13 · answer #5 · answered by maniacfox 2 · 0⤊ 0⤋
Oil prices are at an all time high. See the relationship?
2007-12-13 10:17:12 · answer #6 · answered by ? 7 · 0⤊ 0⤋
Gordon Brown
2007-12-13 10:17:48 · answer #7 · answered by *Sparki* 5 · 1⤊ 0⤋
Oil is a commodity. It's all about supply and demand. When demand is high and supply is low the price of gasoline goes through the roof!
2007-12-13 10:16:01 · answer #8 · answered by Anonymous · 1⤊ 0⤋
It is all greed with the Government. They have to make the money somehow for the Olympic Games in 2012.
2007-12-13 14:31:33 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Robbers the lot of them...
P.S. we have been sent an email about blockades starting this Saturday and have been advised to fuel up tomorrow (we are a transport company)
2007-12-13 10:16:39 · answer #10 · answered by Shades 3 · 0⤊ 0⤋