[extropy-chat] Value chain tracing was FWD [U-Tapao] Re: IS IT TIME TO RATION FUEL?

[BillK]

On 8/22/05, Brett Paatsch wrote:
> 
> I reckon your probably pretty right Eugen but getting at the purer truth
> of it might be fun, but bearing in mind I'm in not in either Europe or
> the US I think we need to get specific because the variatious in taxes
> and charges and profit margins etc are very likely to exist within such
> big geographic areas, thats why I want to hone in one particular petrol
> station one in each of two particular places. (And it makes sense that
> each of these be stations that are of least some interest to someone
> involved in the conversation.
> 
> The notion that someone somewhere is getting filthy sneakily rich on oil
> (and even going to war over it) sure as heck seems to be making some
> folks at least a little antsy so lets turn on the light on the problem in a
> practical and analytical way and see what the facts tell us.
> 


I think you might be leaping in where angels fear to tread. :)
The oil distribution industry must be about the most analysed industry
in the world. I doubt if there is anything new that we can discover.

Here is a report from ExxonMobil defending the UK price. (June 2004).
http://www.exxonmobil.co.uk/UK-English/Newsroom/UK_NR_VP_Viewpoint_FuelsPricing_june2004.asp

Quote:
Petrol prices in the UK are high because over 75 per cent of the pump
price is excise duty and VAT. This is the highest level of tax in
Europe. When taxes are excluded, not only are UK petrol prices among
the lowest in Europe but they are lower even than those in the USA
(OPAL/IEA data).

The UK petrol retailing business remains extremely competitive and
margins are very tight. For example, the average industry price of
unleaded petrol in 2003 was 76.3p per litre. When taxes and the cost
of producing the fuel are excluded, just over 5p per litre is left for
the retailer and the oil company.

This 5p has to cover the cost of getting the product from the refinery
to the distribution terminal, storing it, putting in additives to
improve performance and trucking it to the retailer, the retailer's
staff and other costs of running the site including credit card
charges (themselves over 1p per litre), promotions and marketing
costs, as well as generating an income for the retailer and a return
on investment for both the retailer and the oil company.

The margins earned by the petrol retailing industry have been falling
in real terms since the1960s. With little incentive to remain in the
retail business, some petrol retailers have left the industry, whilst
some oil companies have chosen to focus only on upstream activities.


BillK