Will This Work? (Petrol Prices)

This is a discussion on Will This Work? (Petrol Prices) within the The Foyer forums, part of the Off the Grid category; Sorry for disturbing you, just got this email and thought it deserved to be read and passed on. Here it ...

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Old Jun 3, 2004, 5:46pm   #1
Joined Mar 2003
Will This Work? (Petrol Prices)

Sorry for disturbing you, just got this email and thought it deserved to be read and passed on.

Here it is:

You might find this of interest

We are going to hit close to 89p a litre by the summer. Want petrol prices to come down? We need to take some intelligent, united action. Philip Hollsworth offered this good idea:

This makes MUCH MORE SENSE than the "don't buy petrol on a certain day" campaign that was going around last April or May! The oil companies just laughed at that because they knew we wouldn't continue to hurt ourselves by refusing to buy petrol. It was more of an inconvenience to us than it was a problem for them.

BUT, whoever thought of this idea, has come up with a plan that can really work. Please read it and join in! Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a litre is CHEAP at 77p -80p, we need to take aggressive action to teach them that BUYERS control the marketplace not sellers. With the price of petrol going up more each day, we consumers need to take action. The only way we are going to see the price of petrol come down is if we hit someone in the pocket by not purchasing their Petrol! And we can do that WITHOUT hurting ourselves.

Here's the idea:

For the rest of this year, DON'T purchase ANY petrol from the two biggest oil companies (which now are one), ESSO and BP. If they are not selling any petrol, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit.

But to have an impact, we need to reach literally millions of Esso and BP petrol buyers. It's really simple to do!! Now, don't whimp out on me at this point...keep reading and I'll explain how simple it is to reach millions of people!! I am sending this note to a; lot of people. If each of you send it to at least ten more (30 x 10 = 300)... and those 300 send it to at least ten more (300 x 10 = 3,000) ... and so on, by the time the message reaches the sixth generation of people, we will have reached over THREE MILLION consumers! If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted!

If it goes one level further, you guessed it... .. THREE HUNDRED MILLION PEOPLE!!! Again, all You have to do is send this to 10 people. That's all.(and not buy at ESSO/BP) How long would all that take? If each of us sends this email out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within the next 8days!!!

I'll bet you didn't think you and I had that much potential, did you! Acting together we can make a difference. If this makes sense to you, please pass this message on. PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO THE 69p a LITRE RANGE Action:

It's easy to make this happen. Just forward this email, and buy your petrol at Shell, Tesco, Sainsburys, Morrisons (75p)Jet etc. i.e. boycott BP and Esso.

Kate Griffin BA (Hons)

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juanbyte
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Old Jun 3, 2004, 6:17pm   #2
Joined May 2004
I think its a good idea and would cause them some harm!

But there are two factors that they aren't in control of.. the governments extreme and unfair tax, and the tension in the middle-east which is the main reason for the increase crude oil price.

If we could get the thieving government to stop taxing us so unfairly then we might get somewhere. And that could be a side effect of boycotting BP and Esso... they might think of trying to lobby for lower tax rates.

Nasty business all this, and the gradual increase of base rates. Good conditions for a dip in the market... time to go bearish before everyone else does :OD
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Old Jun 3, 2004, 6:17pm   #3
 
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Found this on another forum:

Current duty is 47.1 p per litre

You actually have to pay VAT on the duty too

Normal price round our way is 83p per litre right now.

Sales price = 83p

of which VAT = 12.4 p
fuel duty = 47.1 p

Total govt take = 59.5p

Total oil company take = 23.5p

If the lunatic who circulated the letter wants to reduce the price to 69p then the maths would work out like this

Sales price = 69 p
of which VAT = 10.3p
fuel duty = 47.1 p

Total govt take = 57.4 p
Total oil company take = 11.6p = £18.44/bbl = $33.88/bbl

Current price of crude oil which excludes refining, shipping and retail costs = $37-40/bbl

Net loss to oil companies = $3-6/bbl

The problem is that the taxes on petrol and also the tax revenue from the oil companies is flat. If the chancellor tweaked the tax system so that as the oil prices went up the duty came down, offset by some degree by an increasing percentage take of the oil companies profits , the oil price variations could be smoothed out.

This would also work the other way around though - as the oil price fell the duty would increase and the tax on oil companies falls.

That way people are not encouraged to waste fuel like the Americans do, the oil companies are protected in the lean times and are bled in the good times and the price at the pumps stays stable.

***

Not a bad answer I thought.
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Old Jun 3, 2004, 6:29pm   #4
 
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Hi Peeps

I agree with Frugi, although I would do it slightly differently. I would cap fuel at 75p a litre. That way, you know what your going to be paying.
If the price of oil goes up, the government would foot the bill. However, if price fell the government would be in the money. The government would soon be pushing OPEC to increase production then

PS: I have moved this thread into the Lounge. Please use the General Trading forum for trading related threads only. The lounge is the place for everything else
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Old Jun 3, 2004, 6:37pm   #5
 
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Also tax pointless gas guzzling MPVs which now make up 6% of UK car sales (i.e ones that are not required to go off road for business purposes: posing yummy mummies etc.) much more savagely and invest the proceeds in alternative energy.
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Old Jun 3, 2004, 7:35pm   #6
 
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Quote:
Originally Posted by juanbyte
For the rest of this year, DON'T purchase ANY petrol from the two biggest oil companies (which now are one), ESSO and BP. If they are not selling any petrol, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit.
<Snip>
PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO THE 69p a LITRE RANGE Action:
Whoever thought this one up must have half a brain.

The alleged target reduction in price to 'around 69p/Litre' is not much more than the chancellor takes in duty. Is the producer/distributer/retailer chain seriously expected to work for free?

Also, If we continue to use the same amount of petrol but only buy from the secondary companies, it will have no effect whatsoever. It's the supply/demand equation that dictates the non-tax elemant of the price. Which supplier is used is pretty much a non-issue.

Peterpr
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Old Jun 3, 2004, 7:53pm   #7
 
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Joined Dec 2002
Golden Brown says:

Quote:
"I want the focus of the next few weeks to be on where the source really lies, and the source of the problem is inadequate production and the instability in the Middle East."
So it's not his taxes that are causing the problem it's that other bloke Bliar's fault for starting a war in the Middle East. Why does anyone vote for this lot?
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