Sudden Drop in Petrol Price after budget increase was implemented

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PaddyH

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Anyone know why the petrol price dropped suddenly on Friday.

On Thurs in Killarney the petrol price was 1.18 and the diesel was 1.22. On Friday morning they implemented the 8c increase from the budget so the price was 1.26 petrol and 1.22 diesel. On Friday evening both prices had reduced - petrol down by 7 cent to 1.19 and diesel by 2 cent to 1.20.

Has the same thing happened across the country? If so what's the reason behind the sudden drop in petrol prices - after the 8 cent increase?
 
I'd be interested in the answer to this one myself. Have noticed in Carlow the very same thing, instead of the Petrol having gone up it has stayed as is or indeed dropped by 1 or 2 cent.
 
Maybe it was just the price of oil kicking in, perhaps the drop would have been greater were it not for the budget increase. It’s all swings and roundabouts.
 
Sligo's the same - went up day after budget to around 1.24, then down again to 1.19 where it is now.
 
Yup, seen the same. pre-budget price for petrol was 1.179, post-budget 1.259. Over the weekend I paid 1.129. I would imagine that the oil price has kicked in, at least a bit, and demand for petrol being on the way down due to economic downturn pretty much everywhere.
 
Saw where some of the money buffs explained that the price per litre should decrease by 10 - 15 cents in line with the price of crude ......... this may be the answer.
 
there was a drop in wholesale rates due two days after the budget.... there was never a chance we were going to see any of it...
 
it's just interesting timing for petrol to drop alot more than diesel - 4 months ago there was probably 10 cent between petrol and diesel - this had dropped to 4 cent approx recently - if you ignore the budget there would be a 10 cent different between petrol and diesel again today - would be interesting to see what happened in the UK last week - did the gap between petrol and diesel widen etc...
 
jhegarty said:
there was a drop in wholesale rates due two days after the budget.... there was never a chance we were going to see any of it...
Click to expand...
So it was slipped in on the budget stealthily - under the guise of doing something green. How about the ministers being driven around in one of those little things that do over 50mpg. Or better still driving themselves around in one.
 
I noticed this as well.

I had assumed that oil companies/petrol stations had been pocketing a sizeable profit over the past few months but when the budget increased petrol prices by 8c they decided not to pass it on as the "shock" would have greatly depressed demand.

But it was the government that was pulling a fast one!
 
One garage in Monaghan didn't seem to increase prices at all. 117.9 on Tuesday, and each day from Wednesday to Friday, down to 115.9 on Saturday.
 
Petrol station in Raheen, limerick is selling litre for €1.14.5 for both fuels. Lowest price I have seen.
 
On a litre of petrol what is the government's tax take now, after the 8c hike in the budget??


When a barrel of oil hit $147 a barrel the highest a litre of petrol went in my area was around €1.35. Asked the above question because I want to see how far we can expect a litre of petrol to come down now that it is at near $60 a barrel.

Thanks
 
well it is 52c now and was 44c

by that reckoning when tax was 44c and a barrel of oil was $146 a litre of petrol was €1.34

now that tax is 52c and a barrel of oil is lets say $65 a litre of petrol should drop to around 92c by my calculations.

Probably take a number of weeks....the lowest I have seen so far is €1.12
 
leesider29 said:
well it is 52c now and was 44c

by that reckoning when tax was 44c and a barrel of oil was $146 a litre of petrol was €1.34

now that tax is 52c and a barrel of oil is lets say $65 a litre of petrol should drop to around 92c by my calculations.

Probably take a number of weeks....the lowest I have seen so far is €1.12
Click to expand...

Its the refined price you need to be looking at rather than the raw material.

My calculations suggest a drop to €1.05 petrol & €1.09 diesel in 2 weeks + €580 per 1000 litres on home heat.
 
This happened because of a very significant drop in the cost of refined petrol that had been withheld for some time.

For more information, see http://paddycounterpoint.blogspot.com/2008/10/irish-retail-petrol-price-analysis.html.

This analysis is restricted to 95 Octane unleaded petrol. The attached document contains the detailed results of this analysis.

Performing this analysis involves gathering data from multiple sources:

  • Price of crude oil – normally priced in USD
  • Price of unleaded petrol (called EN 228 in the industry) – normally priced in USD
  • USD to EUR exchange rates
  • Effective excise and VAT rates
  • Average selling price per litre
This information has to be normalised across changes in currency type and dates on which the information is available.

The EN 228 standard is defined by the Committee for European Standardisation – see http://www.cen.eu/. The relevant standard is EN 228:2008 - Automotive fuels - Unleaded petrol - Requirements and test methods and EU Directive 98/70/EC.

Similarly, diesel is defined by standard EN 590 EN 590:2004 Automotive fuels - Diesel - Requirements and test methods and EU Directive 93/38/EEC.

EN228 is priced in USD per tonne. A tonne of petrol is about 1,335 litres. (This can vary because the specific gravity of EN228 can vary from 720-775 Kg/cubic metre. A cubic metre is 1,000 litres so 1 tonne or 1,000 Kg represents from 1,389 to 1,290 litres. I have used a value of 1,335 litres of petrol per tonne.)

Excise duty increase in increments over the analysed interval. The Oct 2008 budget increased duty (before VAT) to €0.5088 per litre. Prior to that it was €0.4427 per litre for about three years. And so on.

The price of petrol consists of the following elements:

  1. Buy price of litre of petrol
  2. Excise duty
  3. National Oil Reserves Agency levy of €0.01 per litre
  4. Margin added by from retailer and supplier
  5. VAT
according to (1 + 2 + 3 + 4 ) x 5.

However, the public buy price of petrol is not necessarily the price at which it is bought by retailers. Many retail petrol companies are part of larger entities that have direct access to the raw material and refining resources. But the calculated buy price is still a valid index against which sell prices can be compared. This is the price you and I would buy bulk refined fuel for resale at.

Having stated this, the difference between the actual sell price of a litre of petrol at petrol stations and the derived buy price based on the public price of bulk refined petrol should be roughly constant.

There have been long intervals when falls in the cost price have not been matched by falls in the price charged. Price increases are however passed on quickly. Price reductions are passed on slowly if at all.

So, the answer to the question “Are Irish motorists being ripped off?” is a fairly certain yes. The answer to the question “Are the Government doing anything to question retail petrol prices and ensure savings are passed to motorists?” is a definite no.


 
Is the fact that Diesel in my area is suddenly exactly the same price as petrol (Hurrah!), down to the budget, i.e did the extra 8c tax only go on petrol??

Or could it possibly be anything to do with Motoring organistaions across Europe putting pressure on the EU to investigate the inexplicable differences we have endured in diesel versur petrol prices for the last six months?

Meanwhile Shell and BP report "better-than-expected first-quarter profits" :mad:
 
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