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Diesel in Spain cost
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"Reduced VAT on gasolina and electricity from 21% to 10%.
Think it got up to about €1.90 per liter a week ago so good to see it back down to around €1.50-1.60"
So you reduce VAT and put up income tax.
Fule rasing £25 billion |
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"Reduced VAT on gasolina and electricity from 21% to 10%.
Think it got up to about €1.90 per liter a week ago so good to see it back down to around €1.50-1.60
So you reduce VAT and put up income tax.
Fule rasing £25 billion "
Who is raising income tax? |
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"Why blame government yes tax could be removed or reduced but that money would still need to be raised. "
The tax is levied as a percentage on the supply cost of the fuel, around about 100%. So if supply cost goes up by 10p, the tax goes up by 10p as well, making an increase to motorists of 20p.
The government could afford to drop fuel tax by 10p per litre and still be bringing in the same amount they were getting before the recent increases. |
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"Why blame government yes tax could be removed or reduced but that money would still need to be raised.
The tax is levied as a percentage on the supply cost of the fuel, around about 100%. So if supply cost goes up by 10p, the tax goes up by 10p as well, making an increase to motorists of 20p.
The government could afford to drop fuel tax by 10p per litre and still be bringing in the same amount they were getting before the recent increases."
So if it was to drop by 0.5% yes it would leave about the same income but would it make that much of a difference to a tank full.
Considering they want cars off the road or to be electric |
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"I paid £188.9 for diesel last evening.
£30 just over quarter tank "
Ouch. Was that a BP or Esso type outlet?
I have just put in diesel and it was £1.66 at Tesco which was 10p more than I paid just over a week ago and about 27p more than a month ago. Scary times |
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"I paid £188.9 for diesel last evening.
£30 just over quarter tank
Ouch. Was that a BP or Esso type outlet?
I have just put in diesel and it was £1.66 at Tesco which was 10p more than I paid just over a week ago and about 27p more than a month ago. Scary times"
Asda franchise! |
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"I paid £188.9 for diesel last evening.
£30 just over quarter tank
Ouch. Was that a BP or Esso type outlet?
I have just put in diesel and it was £1.66 at Tesco which was 10p more than I paid just over a week ago and about 27p more than a month ago. Scary times"
But I guess you earned more club points.  |
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"I paid £188.9 for diesel last evening.
£30 just over quarter tank
Ouch. Was that a BP or Esso type outlet?
I have just put in diesel and it was £1.66 at Tesco which was 10p more than I paid just over a week ago and about 27p more than a month ago. Scary times
Asda franchise! "
Wow that's quite a variation |
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"I paid £188.9 for diesel last evening.
£30 just over quarter tank
Ouch. Was that a BP or Esso type outlet?
I have just put in diesel and it was £1.66 at Tesco which was 10p more than I paid just over a week ago and about 27p more than a month ago. Scary times
But I guess you earned more club points. "
True. Every little helps as they say |
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"According to the RAC the average price of unleaded petrol has reached £1.50 per litre
Pre war… average was £1.24 per litre….
Thanks “trumpito”……"
I constantly thank Trump for the price rises, on behalf of the profiteering fuel industry, who must surely appreciate everyone's support in their hour of need. |
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"According to the RAC the average price of unleaded petrol has reached £1.50 per litre
Pre war… average was £1.24 per litre….
Thanks “trumpito”……
I constantly thank Trump for the price rises, on behalf of the profiteering fuel industry, who must surely appreciate everyone's support in their hour of need."
Are they “profiteering”?
The main price gougers from petrol price increases are HM Government. They could easily reduce the cost of living pressure on hard working people by scrapping all taxes at the pump. |
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"According to the RAC the average price of unleaded petrol has reached £1.50 per litre
Pre war… average was £1.24 per litre….
Thanks “trumpito”……
I constantly thank Trump for the price rises, on behalf of the profiteering fuel industry, who must surely appreciate everyone's support in their hour of need.
Are they “profiteering”?
The main price gougers from petrol price increases are HM Government. They could easily reduce the cost of living pressure on hard working people by scrapping all taxes at the pump."
Well, I am left to conclude that some are profiteering after I paid 10p less per litre this morning at Sainsbury's than the prices being displayed at other local oitlets. |
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"According to the RAC the average price of unleaded petrol has reached £1.50 per litre
Pre war… average was £1.24 per litre….
Thanks “trumpito”……
I constantly thank Trump for the price rises, on behalf of the profiteering fuel industry, who must surely appreciate everyone's support in their hour of need.
Are they “profiteering”?
The main price gougers from petrol price increases are HM Government. They could easily reduce the cost of living pressure on hard working people by scrapping all taxes at the pump."
What and in crease paye tax to make up the £26 billion. That the government would lose.
Why not scrap vat on all items across the board. |
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It’s not as easy as you all think.
Every petrol retailer is on a different deal.
Asda and EuroGarages (Issa Brothers) are heavily leveraged so don’t have a very good fuel deal and pay prices today to fill tanks. They have found it hard to control prices.
I have clients who pay based on a weeks lag, so the fuel they put underground today is based on average prices last week. But in order to be able to replenish that fuel and have some money to pay operating costs they have to increase the pump price. On average they make about 15p a litre sold. But that has to cover the costs of the site. On average bottom line profit after wages, insurance, interest etc is about 1p a litre. Not many dealers are price gouging as much as RAC would have you believe. If my clients cut price they would barely break even and if not lose money. You could argue they would sell more litres but they probably couldn’t cope with the volume of transactions through the pump, and cause traffic chaos at same time.
When the war started they knew they would be paying 16p more a litre in the week following. It has settled to about 17p above pre war pricing now. Their price has moved in line plus the extra 3.5p for VAT.
Sainsbury’s has this week blown the prices down, and no one can work out how. They were priciest to raise in early days of crisis but now seem to be undercutting everyone else considerably.
The solution has been for a long time to do one of two things.
The big problem is VAT varies based on price and duty is fixed.
So the solution should probably be to do away with VAT on fuel, and instead set the duty higher. That way at least when the price goes up or down, the government gets the same take and the price doesn’t go up as much.
Currently duty is 53p per litre.
Unleaded Pre war cost (net of vat) was 33p
So 86p
Add 15p dealer margin and £1.11 + vat = £1.34 per litre
Government receives 53p duty and 23p VAT
Post war
Duty same
Cost 60p per litre
£1.13 add 15p margin = £1.28, add vat £1.54
Government now receives 53p duty and 26p vat a grand total of 3p more a litre.
So maximum discount government could give to be in same situation is a cut of 3p.
Especially if you consider that the majority of fuel is used by businesses whose profits will be reduced if they don’t pass on and therefore less corporation tax revenues next year.
It’s not a black and white situation and because of the state of the UK economy after many years of mismanagement last lot and this current government there are very few levers that can be pulled.
I could bore you all to death with fuel pricing and pre post covid trends (hint supermarkets liked the increased litre margins and never cut them back after covid when volumes started to increase again), Asda monopoly (with EuroGarages) meaning competition was reduced. Commission operators being squeezed to death by big brands (similar to pub landlords who are tithed to brewery), Independent Dealer sites (like my clients) who have to manage cashflow diligently to ensure they have fuel underground while looking at a freehold valuation that would give better returns sitting in the bank than running a business for the profit they return.
But I’ll leave you with that for now.  |
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By *cuk1999Man 6 weeks ago
Canary Islands |
So getting back to the original point of fuel price in Spain I'm in the canaries.. and pre trump tantrum.. it was €1.20 Ltr of Diesel(£1.04 ish) we topped today at €1.43 (disa) up untill Feb this year we also got a tax reduction of around 0.10 per Ltr at point of payment . .. just shows how much money is recovered in duty |
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Yesterday at around 0615. I filled up at my local Costco. Yes know have to be a member . My car is diesel. Price was £1.59. After went shopping at local Asda . Fuel there was £1.70 . Also went past a Shell garage . Price was £1.73.
Yet Asda must have more buying power than Costco for fuel ? So Asda should be cheaper ?
If I am correct . Costco has twenty fuel stations at stores and Asda over three hundred. |
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"Yesterday at around 0615. I filled up at my local Costco. Yes know have to be a member . My car is diesel. Price was £1.59. After went shopping at local Asda . Fuel there was £1.70 . Also went past a Shell garage . Price was £1.73.
Yet Asda must have more buying power than Costco for fuel ? So Asda should be cheaper ?
If I am correct . Costco has twenty fuel stations at stores and Asda over three hundred. "
Don’t forget all the EG Group stations which are part of the same group as Asda.
But their situation is probably a little unique. They have massive debt. They buy a site with funding from Probate Equity and banks. And they continually roll that finance. The interest rates when they took on Asda were relatively low Putins war and now Trumps have forced interest rates up meaning they have to make more profit on product to cover. That coupled with reduced spending by middle income on ready to go food means that their business model with food offerings on fuel courts is really taking a hit.
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Also Costco v Asda is a prime example of why sometimes big business gets too big (throw Tesco in with Asda too).
Costco doesn’t have the infrastructure spend of the likes of Asda and Tesco. So they can be cheaper across their product because the profit doesn’t have to pay for the marketing budget, the middle management positions, the logistics teams etc.
I have clients who are small independent convenience stores who can sell cheaper than Tesco and Asda with 50% margin on things like soft drinks. Because they only have to cover their salary from their store and maybe a couple of assistants. Go and look at your local Farmfoods and see how may like for like products are cheaper than the big boys.
That may be a bit different to current fuel situation but biggest stores are not always cheapest. |
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"It’s not as easy as you all think.
Every petrol retailer is on a different deal.
Asda and EuroGarages (Issa Brothers) are heavily leveraged so don’t have a very good fuel deal and pay prices today to fill tanks. They have found it hard to control prices.
I have clients who pay based on a weeks lag, so the fuel they put underground today is based on average prices last week. But in order to be able to replenish that fuel and have some money to pay operating costs they have to increase the pump price. On average they make about 15p a litre sold. But that has to cover the costs of the site. On average bottom line profit after wages, insurance, interest etc is about 1p a litre. Not many dealers are price gouging as much as RAC would have you believe. If my clients cut price they would barely break even and if not lose money. You could argue they would sell more litres but they probably couldn’t cope with the volume of transactions through the pump, and cause traffic chaos at same time.
When the war started they knew they would be paying 16p more a litre in the week following. It has settled to about 17p above pre war pricing now. Their price has moved in line plus the extra 3.5p for VAT.
Sainsbury’s has this week blown the prices down, and no one can work out how. They were priciest to raise in early days of crisis but now seem to be undercutting everyone else considerably.
The solution has been for a long time to do one of two things.
The big problem is VAT varies based on price and duty is fixed.
So the solution should probably be to do away with VAT on fuel, and instead set the duty higher. That way at least when the price goes up or down, the government gets the same take and the price doesn’t go up as much.
Currently duty is 53p per litre.
Unleaded Pre war cost (net of vat) was 33p
So 86p
Add 15p dealer margin and £1.11 + vat = £1.34 per litre
Government receives 53p duty and 23p VAT
Post war
Duty same
Cost 60p per litre
£1.13 add 15p margin = £1.28, add vat £1.54
Government now receives 53p duty and 26p vat a grand total of 3p more a litre.
So maximum discount government could give to be in same situation is a cut of 3p.
Especially if you consider that the majority of fuel is used by businesses whose profits will be reduced if they don’t pass on and therefore less corporation tax revenues next year.
It’s not a black and white situation and because of the state of the UK economy after many years of mismanagement last lot and this current government there are very few levers that can be pulled.
I could bore you all to death with fuel pricing and pre post covid trends (hint supermarkets liked the increased litre margins and never cut them back after covid when volumes started to increase again), Asda monopoly (with EuroGarages) meaning competition was reduced. Commission operators being squeezed to death by big brands (similar to pub landlords who are tithed to brewery), Independent Dealer sites (like my clients) who have to manage cashflow diligently to ensure they have fuel underground while looking at a freehold valuation that would give better returns sitting in the bank than running a business for the profit they return.
But I’ll leave you with that for now. "
This is so much more informative than the sensationalism being played. |
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"It’s not as easy as you all think.
Every petrol retailer is on a different deal.
Asda and EuroGarages (Issa Brothers) are heavily leveraged so don’t have a very good fuel deal and pay prices today to fill tanks. They have found it hard to control prices.
I have clients who pay based on a weeks lag, so the fuel they put underground today is based on average prices last week. But in order to be able to replenish that fuel and have some money to pay operating costs they have to increase the pump price. On average they make about 15p a litre sold. But that has to cover the costs of the site. On average bottom line profit after wages, insurance, interest etc is about 1p a litre. Not many dealers are price gouging as much as RAC would have you believe. If my clients cut price they would barely break even and if not lose money. You could argue they would sell more litres but they probably couldn’t cope with the volume of transactions through the pump, and cause traffic chaos at same time.
When the war started they knew they would be paying 16p more a litre in the week following. It has settled to about 17p above pre war pricing now. Their price has moved in line plus the extra 3.5p for VAT.
Sainsbury’s has this week blown the prices down, and no one can work out how. They were priciest to raise in early days of crisis but now seem to be undercutting everyone else considerably.
The solution has been for a long time to do one of two things.
The big problem is VAT varies based on price and duty is fixed.
So the solution should probably be to do away with VAT on fuel, and instead set the duty higher. That way at least when the price goes up or down, the government gets the same take and the price doesn’t go up as much.
Currently duty is 53p per litre.
Unleaded Pre war cost (net of vat) was 33p
So 86p
Add 15p dealer margin and £1.11 + vat = £1.34 per litre
Government receives 53p duty and 23p VAT
Post war
Duty same
Cost 60p per litre
£1.13 add 15p margin = £1.28, add vat £1.54
Government now receives 53p duty and 26p vat a grand total of 3p more a litre.
So maximum discount government could give to be in same situation is a cut of 3p.
Especially if you consider that the majority of fuel is used by businesses whose profits will be reduced if they don’t pass on and therefore less corporation tax revenues next year.
It’s not a black and white situation and because of the state of the UK economy after many years of mismanagement last lot and this current government there are very few levers that can be pulled.
I could bore you all to death with fuel pricing and pre post covid trends (hint supermarkets liked the increased litre margins and never cut them back after covid when volumes started to increase again), Asda monopoly (with EuroGarages) meaning competition was reduced. Commission operators being squeezed to death by big brands (similar to pub landlords who are tithed to brewery), Independent Dealer sites (like my clients) who have to manage cashflow diligently to ensure they have fuel underground while looking at a freehold valuation that would give better returns sitting in the bank than running a business for the profit they return.
But I’ll leave you with that for now. "
Oh well. So long as your clients are cushioned a bit from the effects of Trump's idiocy..
Meanwhile, the rest of use will dutyfully (pun intended) grin and bear it!
Most people, like it or not, will view it as profiteering, rather than cushioning... |
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By *abioMan 6 weeks ago
Newcastle and Gateshead |
Funny enough you are going to start seeing the same thing happening with flights and airlines… saw an article in that a lot of airlines are going to start hiking prices because of the increase in jet fuel, whereas, and I don’t give Ryanair credit often, don’t have to because they hedged and bought their fuel at a much cheaper rate and say they are good for at least a year!
The other thing to look at is going to be when the war ends, look to see what Middle Eastern carriers like etihad, emirates and Qatar do, they may slash prices to try and get tourism back, and they can basically run as loss leaders because their governments will backstop them!
So if you are going to or through they may be cheaper than western carrier
alternatives |
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"Funny enough you are going to start seeing the same thing happening with flights and airlines… saw an article in that a lot of airlines are going to start hiking prices because of the increase in jet fuel, whereas, and I don’t give Ryanair credit often, don’t have to because they hedged and bought their fuel at a much cheaper rate and say they are good for at least a year!
The other thing to look at is going to be when the war ends, look to see what Middle Eastern carriers like etihad, emirates and Qatar do, they may slash prices to try and get tourism back, and they can basically run as loss leaders because their governments will backstop them!
So if you are going to or through they may be cheaper than western carrier
alternatives "
Yeah, I was going to get away this year, maybe a hiking trip or city trip to Italy or Portugal but I think I'm just going to leave it, I've got a good house deposit saved and don't want to eat into it.
So I think I'll just do a bunch of hiking trips around the UK. |
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