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Seasonal2 mins ago
Oil & Gas
In view of the recent price increases by EDF, it got me thinking about why gas prices are linked to the price of oil. Does anybody know why the prices are linked?
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If the UK had retained all its energy resources instead of liberalising the market and selling these companies to the French and Germans we could have determined our own price for British consumers. What other country in the world allows their assets to be sold off like this.
Russia is trying to get rid of BP so they have overall control of its oil. Saudia Arabia are sitting on liquid gold and its citizens enjoy petrol at a very cheap rate not having to worry about world prices.
The British consumer is a mug and they know we will fall for it.
Russia is trying to get rid of BP so they have overall control of its oil. Saudia Arabia are sitting on liquid gold and its citizens enjoy petrol at a very cheap rate not having to worry about world prices.
The British consumer is a mug and they know we will fall for it.
Oil and natural gas are produced by the same geological process: anaerobic decay of organic matter deep under the Earth's surface. As a consequence, oil and natural gas are often found together. In common usage, deposits rich in oil are known as oil fields, and deposits rich in natural gas are called natural gas fields.
from Wikipedia
from Wikipedia
Interestingly, EDF has no plans to increase energy prices for its French customers. This is because energy prices there are regulated by the government. So to recoup its increasing costs the company has to resort to the time-honoured tradition of fleecing the UK consumer.
The link between gas and oil prices is similar to that which linked gas and electricity prices in the 1960s. When North Sea gas was discovered it was announced that gas would be �virtually free� to UK consumers, with just a small administration charge being raised. Not long after that the electricity industry realised that people would switch to gas as far as they could and they lobbied parliament to establish a link between the two types of energy.
There is no logical reason for it, only a commercial one.
The link between gas and oil prices is similar to that which linked gas and electricity prices in the 1960s. When North Sea gas was discovered it was announced that gas would be �virtually free� to UK consumers, with just a small administration charge being raised. Not long after that the electricity industry realised that people would switch to gas as far as they could and they lobbied parliament to establish a link between the two types of energy.
There is no logical reason for it, only a commercial one.
Quite a lot of people care, gravitation. Especially those on low or fixed incomes who have seen their energy bills almost double in the past 18-24 months.
Although the government is seeing an increase in tax revenue (by virtue of 5% VAT on the fuel bills) it is probably losing out overall as people have less to spend on other things, where the VAT would be 17.5%. So I don�t quite see how your assertion that it is �tax related� holds water.
There is no doubt that UK consumers are being turned over by mainly foreign-owned utility companies who charge nowhere near as much for their products elsewhere as they do in the UK.
Although the government is seeing an increase in tax revenue (by virtue of 5% VAT on the fuel bills) it is probably losing out overall as people have less to spend on other things, where the VAT would be 17.5%. So I don�t quite see how your assertion that it is �tax related� holds water.
There is no doubt that UK consumers are being turned over by mainly foreign-owned utility companies who charge nowhere near as much for their products elsewhere as they do in the UK.
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