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Price of gasoline going over 1 Euro

Posted by lawrence38-682147 - Created: 9 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by lawrence38-682147 - 7 years ago

Brace yourself folks and try to fill up some gas tomorrow, I was just talking to guy involved in the business and he was telling me after the VAT increase, which will most likely be doubled up by the gas station owners as an excuse, the gas price in Cyprus will go over 1.4 Euro (98 octane).
I'm sorry to say it seems the prediction regarding prices getting closer to Greece is slowly becoming reality.While Greeks have much better public transportation than Cyprus, people here pay much more of their wages on gasoline, maybe some of the highest ratio in EU. Not to bring into discussion the fact that the prices on this island are much higher than in Greece overall and that everytime there is a big price hike on gasoline, the retailers seem to increase prices too.
Some things will be me more expensive twice as well: once because of the 15 >17 % VAT increase and then again because shop owners will have to pay their suppliers more to cover their fuel costs.
Happy Happy Joyous times ahead it seems :)

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Posted by lawrence38-682147 - 7 years ago

funny to return to a discussion, now with the gasoline price closer to 1.4 euros, we are slowly-slowly catching up to Greece now it seems...In a country where there's hardly any public transport and everything gets freighted around in small delivery vans, be prepared for big increases in everyday prices.

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Posted by ifranky - 9 years ago

BUT for someone here, X company buying USD prices crude oil or derivatives they are paying USD so they have to convert their EUR at a rate that dipped as low as 1.19, lowest in many years, at the beginning of the year it was sitting at 1.45.
No, the international market controls the prices paid 'abroad'. If the US would not put pressure on oil barons and multinationals to do so, the USD would crash even more and as main oil consumer they can do so. Companies in Cyprus do not buy directly from the source crude oil in, they buy from BP/Shell/Exxon and Co. These multinationals have lots of USD in the account and that USD needs to be stabilised, so there's absolutely no interest for them in not making the international price more expensive.
Companies like Exxon already manage to have lowest tax payments of any company in the US. They can increase the price 'abroad' not in the US though. I guess it's lovely when you're in the prime spot and can try to control the market and if they don't listen, Mr. Obama will surely find a way. But with $2,000bn bail out and still no end in sight... the USD needs to be saved. Europe will pay for, pay when buying oil.
And now BP needs to save some $20bn at least, because Obama said so. BP can not allow either that Europe gets cheap oil, not just because of the clean up but also because of all the pensions in the UK relying on BP.
Agreed that there will surely be some taxes but if you compare USD-EUR over last weeks you'll notice that the increases mirror the currency rate very well actually. Keep in mind that for these multinationals the international wage bill increases due to the poor USD.
You and I pay for that, they don't.
If you live outside of the US you'll just pay more $ for the same.
Note: I do the same, advertisers on our internet network right at the moment pay more if they are not US based... why? Because many of our people are paid in their local currency and not in USD. I do not have more income because of the poor dollar though and that is mainly because every market is in tatters right at the moment so everyone try to sit on their money or is still paying off. (I am CEO of an internet network with more than 100 active websites and we have around 80 people world wide on our wage bill - and no we don't make platinum b*lls, times are tough for us as well, our advertising rates have never been as low as they are now and we are around 2/3 below what we could charge in 2005)
Btw... 'things couldn't be better': my rate is based on second half of 2006 USDEUR situation. 'Couldn't be better' means that with the exception of some months (right now being one of those) I have always been losing money. One learns to live and get on with it, right now I'm enjoying these 6, hopefully 8 weeks. After that back to 'd*mn USD' times. :)

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Posted by Devonite-692897 - 9 years ago

Yes, it couldn't be better for you , being paid in USD, of course, as the value of USD against EUR , your wages improve.

BUT for someone here, X company buying USD prices crude oil orderivatives they are paying USD so they have to convert their EUR at arate that dipped as low as 1.19, lowest in many years, at the beginningof the year it was sitting at 1.45.

Where am I being wrong ? I don't work in Forex or such ( I'd wish :( ... ) but i do keep a keen eye on important things that happen on the markets as a passion...

Anyway I agree with "dave giddy" , this latest hike is caused by thetax, at least the 6c of it, the other 1-2 cents is of course thebeloved gas stations

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Posted by ifranky - 9 years ago

Actually, wrong. The EUR-USD is very favourable for the EUR (trust me, as online worker I get paid in USD and times 'couldn't be better' for me since some weeks).
Now the opposite is happening: instead of oil becoming cheaper for Europe, the international market will increase the export price to stabilise the market (and you can be sure off the fact that BP has a hand in this). And although in last days there has been a small drop (check dollar value again), look what happened in the UK with fuel prices: http://www.whatprice.co.uk/petrol-prices/recent-petrol-prices.html

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Posted by dave giddy - 9 years ago

i believe the latest increase is due to tax and not crude oil price. most petrol stations' price 108 or thereabouts

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Posted by Devonite-692897 - 9 years ago

Compared to what ? The Euro is actually at it's bottommost point against the EURO, that actually would increase the price of gas sort of since people here use euro to buy gas priced in USD. I believe that most probably here in the UK the Brent quotation is used. the USD is by no means not weak at the moment...

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Posted by pav - 9 years ago

more like 10% to 12% increase.


paul.

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Posted by ifranky - 9 years ago

Ever heard of BP? BP is not going to pay those $20bn, we will though.
And besides that the USD is even lower than Greece's economy.

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Posted by Devonite-692897 - 9 years ago

ha-ha...here it goes again, another 6.5-7% increase...