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Fuel Prices


mr_brain
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So if on average fuel (petrol/diesel) costs 54p/litre before any tax is added, why doesn't the SIC/SCT/SAT get together with BP/Total and build us a micro-refinery, and instead of creaming a percentage off the top for per barrel of throughput at Sullom, take the percentage in oil.

 

Then make our own fuel locally, SIC/etc can claim this as a tax-free overhead and not have to pay duty on it, surely that would save the council shedloads of cash every year and we wouldn't be having a lot of these daft cutbacks. As well as supplying the people of Shetland with fuel at sensible prices.

 

We'd also be able to export excess fuels to Orkney, Faroe & Scotland. Which in turn would enable us to say bye bye to the monopoly that is GB Oils.

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cant see BP or Total being interested in a few hundred thousand from shetlands fuel profit per year when they are making that a day in some places!!

 

if it was viable you can place a good bet it would have already been done, like bringing fuel in road tankers up.

 

mabye streamline should buy another ship (tanker) and start bringing in fuel?

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So if on average fuel (petrol/diesel) costs 54p/litre before any tax is added

 

It's about 41p per litre to buy the crude feedstock and at current prices petrol is being sold for 48p per litre ex vat and duty. The 'profit' is 7p per litre before any refining costs - plus ignoring that only a part of your crude feedstock can be refined into petrol.

You need serious amounts of refining to make any money in that industry,

I'd suggest a micro refinery would actually lose significant amounts of money.

 

So maybe you're right, the council should build one - seems in line with their usual business strategies :roll:

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fine idea a micro refinery except well itl never happen the cost of building running and maintaining is more than youre entire reserves theres many issues which make it impossible in any case its not the councils concern how much fuel is in the isles,

streamline getting a tanker is also a good idea but cant work either because tankers are chartered to lift fuel from depots like grangemouth and immingham, they are not going to entertain a sinlge companylike streamline taking a boat load of fuel to shetland and undercutting the price that there contracted charter (gb oils and there fleet of border boats which are bp operated by the way) are selling here you could always try going to a small refinery abroad then but its likely far enough away that there is no cost saving any way

i realy dont know what can be done in all ohnesty its something we cant do without nd they know this i think the monopoly situation will probably never change either due to what i mentioned above and that if it was profitable it would have been done allready, oil companys never miss a trick, cut down our relience on fuel is all i can see

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fine idea a micro refinery except well itl never happen the cost of building running and maintaining is more than youre entire reserves theres many issues which make it impossible in any case its not the councils concern how much fuel is in the isles,

streamline getting a tanker is also a good idea but cant work either because tankers are chartered to lift fuel from depots like grangemouth and immingham, they are not going to entertain a sinlge companylike streamline taking a boat load of fuel to shetland and undercutting the price that there contracted charter (gb oils and there fleet of border boats which are bp operated by the way) are selling here you could always try going to a small refinery abroad then but its likely far enough away that there is no cost saving any way

i realy dont know what can be done in all ohnesty its something we cant do without nd they know this i think the monopoly situation will probably never change either due to what i mentioned above and that if it was profitable it would have been done allready, oil companys never miss a trick, cut down our relience on fuel is all i can see

 

 

 

Don't know about that , the oil companies will sell their product to anyone who pays the money , I don't imagine for a second that they give a damn if GB oils are our supplier or not , they would happily sell to any company(or council) who have the infrastructure to store the product in Shetland , maybe a good idea if our present council put pressure on GB oils to move from their present site at North Ness (which they should be doing regardless of this or any other reason) to another location , maybe then another supplier could come in and break the monopoly as everyone would be starting from a level playing field . The tankers are coming up to Shetland with a given amount of fuel onboard , don't suppose it would change anything for them if the product was sold by multiple retailers or not , the islands aren't going to consume any more fuel because of that .

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Reading in today's papers about petrol price wars involving the supermarkets, following recent falls in crude oil prices, only seems to highlight even more the injustice of the retail prices up here.

 

All we seem to get from our MP and MSP is talk. Nothing ever happens.

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Following on from my last post to this thread, there is an ad in today's newspapers from Sainsbury's saying that they are starting a campaign tomorrow where you can get 10p off the price of a litre of fuel when you spend at least £60 in the store. It's only for a few days but is a decent saving !

 

http://www2.sainsburys.co.uk/instoreoffers/fuel-deal

 

It's a different world out there, eh?

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