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Fuel Consumption


kamalabc

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Petrol prices 'may hit £2 at pumps'

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Petrol prices could hit two punds a litre is the Libya crisis escalates, a Government minister warned

Petrol prices could hit two punds a litre is the Libya crisis escalates, a Government minister warned

The battle for control of Libya is still raging amid growing fears over the impact of instability in the region on oil prices, which could see petrol prices hit as much as £2 a litre at the pumps.

Fierce fighting was under way in the city of Zawiya, just 50 miles from the capital Tripoli, as ##### struggled to repel an assault by Colonel Muammar Gaddafi's forces.

Meanwhile, insurgents were reported to have taken control of the oil port of Ras Lanuf after a series of bloody engagements, a key strategic site.

With the fate of the country hanging in the balance and a full-blown civil war on the cards, a British minister has warned over the impact on fuel costs.

Brent Crude has already risen to 116 dollars in response to months of unrest across the Gulf and North Africa.

But international development minister Alan Duncan, a former oil trader, suggested the price could yet top 200 dollars a barrel - significantly above the current record of 147 dollars from July 2008.

In a worst-case scenario where terrorists exploit the turmoil in the Gulf to bomb tankers and reserves, the price could even nudge 250 dollars, which would leave UK motorists paying some £2.03 at the pumps.

"I've been saying in government for two months that if this does go wrong, £1.30 at the pump could look like a luxury," Mr Duncan said. "200 dollars is on the cards if... anyone is reckless and foments unrest."

He added: "It could be very serious. If crude oil doubles, you're going to have a serious spike (in petrol prices). Try living without it for a week."

:alc: :alc: :alc:

Pump up boys and girls!!! This is from a MSN UK...

Edited by VVTi
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:alc: :alc: :alc:

Pump up boys and girls!!! This is from a MSN UK...

Our oil doesn't pass thru the Med. Unless we have some sorta deal with Libya, which I wouldn't totally discount, seeing how our leaders are such great buddies.

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Our oil doesn't pass thru the Med. Unless we have some sorta deal with Libya, which I wouldn't totally discount, seeing how our leaders are such great buddies.

But once the global price goes up in a uniform manner, it wouldn't matter who we are friends with or if we get it though the Med. We are looking at around Rs. 250 a liter if they maintain the current pricing structures.

Paying Rs. 250 per liter! Imagine that! :alc:

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But once the global price goes up in a uniform manner, it wouldn't matter who we are friends with or if we get it though the Med. We are looking at around Rs. 250 a liter if they maintain the current pricing structures.

Paying Rs. 250 per liter! Imagine that! :alc:

I think part of the price hike is due to insurance fees on shipping thru a war zone, at least as far as UK is concerned. We have issues too, Bahrain isn't stable, Saudi oil has to pass those shores.

Anyone with info on the oil exploration in the Mannar area?

Edit : I think you've misunderstood me. I assume we don't have oil passing thru the Med due to distance and shipping prices. If we do, it will be due to the political connections. However, if we were getting oil from Libya, that supply will get cut off for now.

Anyway, as you should know by now, our petrol prices have little to do with world oil prices, and more to do with our politicians and how much crying the Indians (LIOC) does. We are still paying the amount that we paid during the Hedging deal, aren't we?

Edited by Pericles
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But once the global price goes up in a uniform manner, it wouldn't matter who we are friends with or if we get it though the Med. We are looking at around Rs. 250 a liter if they maintain the current pricing structures.

Paying Rs. 250 per liter! Imagine that! :alc:

Dont we still have the Hedging deal, if thats the case prices shouldn't increase right ?

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But once the global price goes up in a uniform manner, it wouldn't matter who we are friends with or if we get it though the Med. We are looking at around Rs. 250 a liter if they maintain the current pricing structures.

Paying Rs. 250 per liter! Imagine that! :alc:

damn what will happen to petrol vehicles :( look like economical vehicles will rule roads :angry: btw if this happen what will be the diesel price?

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Dont we still have the Hedging deal, if thats the case prices shouldn't increase right ?

Have a read through the deal Stiggy, it's a nicely planned scam, exit clauses are such that it requires only three months for them to exit the deal and we need to wait for one year to exit it. The value is $100 per barrel of crude oil. IIRC, it was +$30 for them and -$30 for us, but if the value stayed below $100, we were required to purchase 200000 barrels per month while if it was above, we were allowed to purchase only 100000 barrels. Read somewhere that the upside liability was strictly limited so the banks pay us to a certain extent if prices increase, but downside liability is unlimited so we've to pay them however much the prices go down, and when a barrel was $60, we had to pay $40 per barrel to the banks. So if there is such a price hike as VVTi has posted, we would either face severe shortage of petrol if buying only from the money of the deal, or if buying from outside, would need to spend the extra money from somewhere. So in any case, there'd be an increase if it goes beyond $100

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Have a read through the deal Stiggy, it's a nicely planned scam, exit clauses are such that it requires only three months for them to exit the deal and we need to wait for one year to exit it. The value is $100 per barrel of crude oil. IIRC, it was +$30 for them and -$30 for us, but if the value stayed below $100, we were required to purchase 200000 barrels per month while if it was above, we were allowed to purchase only 100000 barrels. Read somewhere that the upside liability was strictly limited so the banks pay us to a certain extent if prices increase, but downside liability is unlimited so we've to pay them however much the prices go down, and when a barrel was $60, we had to pay $40 per barrel to the banks. So if there is such a price hike as VVTi has posted, we would either face severe shortage of petrol if buying only from the money of the deal, or if buying from outside, would need to spend the extra money from somewhere. So in any case, there'd be an increase if it goes beyond $100

Thanks for the info :alc:

I guess either way we are screwed <_<

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