Brooms reduce price of diesel!

[Matt]

http://broomboats.com/marineservices/post.php?s=broom-marina-diesel-prices-to-drop-below-1-a-litre

94p per litre for berth holders! And 95p per litre for non berth holders!

[BroadScot]

That sounds like a substantial drop to me..... Is it? 

 

 

Iain

[NorfolkNog]

Probably is Iain - I think Boulters were charging 114p recently and they are usually among the cheapest.

[Poppy]

I believe it was £1.08 just before Christmas at Brooms.

[BroadScot]

Well, speeking as a hirer, I can but hope a litre of hirers fuel will reduce also, by similar amounts.

 

Iain.

[ExSurveyor]

It was 1.29p at the end of the summer. Nice to see Brooms passing on the reduction.

[jeffbroadslover]

At those prices I wonder how many staff drive diesel cars.   lol

 

 

Jeff

[C.Ricko]

We will be dropping our prices this year, we are among the 'cheaper' hire yards but the price seems to still be going down  so have nothing to announce just yet. 

[DASSBOOT]

Anyone know if its possible to fill up while out of water please? Whats the form for doing this do you have to get a tanker to come?

Thanks

[SweetKingfisher1]

I / we thought we were paying last September at Brooms £1.32 per litre, but 95p will be greatttttttt    . It's great news at last that fuel on the river is lower than on the hight street  . 

 

Is there a way before the season starts to get a list of fuel cost from different yards on southern river and then the same from yards on northern river     ?

 

Regards

Marina   

[SPEEDTRIPLE]

I know i`m a scynical old sod, but i can`t help thinking this fantastic reduction in fuel pricing IS`NT going to last a lot longer. It will stop soon, and it would`nt surprise me to here it go back up QUICKER than when it comes down.

 

As for any hire fleet reducing fuel charges, i think people should wait till nearer their holiday and see what the cost is then. I can imagine the sheer hassle it would cause if a fleet operator were to publically announce a major reduction in fuel charges months before the holiday season starts in earnest, only to have to increase it again a few days before?. It`s great when you hear your holiday cost has been reduced, we`d all be happy with that, but what if the operator contacted you and informed you there`s an excess payment to make upon your arrival.

 

Just a quick question to Clive (CRicko),  How do you buy your deisel, do you buy it in advance like energy companies say they do, or do you buy it on a regular basis throughout the season. The reason i ask is if you bought it in advance at current prices, does that mean you can garuntee a price for the season?, as if you bought it when you need it, i would think your fuel bills would fluctuate considerably?.

 

ps,   i hope you don`t mind me asking?.

[BroadScot]

I would imagine he is out on the hoof in London tonight dining in Mayfairs finest Scottish Resteraunt....Mc Ds    

 

 

Iain.

[C.Ricko]

yes it was a burger restaurant! 

we buy our diesel as and when we need it, 

[JennyMorgan]

Lots of free fuel around at the moment, possibly an excess if I'm honest! 

[MauriceMynah]

Trouble with that "free fuel" Peter is that it's so difficult to store!

[webntweb]

We moor at Brooms and next trip is in six weeks so hopefully be able to take advantage of the new prices. Think about all that lovely cheaper diesel heated warmth when we come back from the pub.

 

I presume the prices quoted are for a 60/40 split.

 

Does anybody know if any of the Broads boatyards will let the customer choose what rate of duty they want to be charged as do most if not all of the canal boatyards.

 

If the weather is rubbish and we stay in the boatyard all week can we ask for all the fuel at the non propulsion rate.

 

Roy

[Stranger]

any news on latest prices of fuel on the Broads yet

[GeoffandWendy]

I was always led to believe that boats were allowed to run on red diesel, like agricultural vehicles, where the tax is a lot lower than road diesel. Or they used to be able to use red diesel. Or has this changed, if so when was it implemented?

Going off the prices quoted here, it seems that ordinary road diesel prices are being charged, and that red diesel cannot now be used for pleasure boats. Maybe commercial boats are allowed but not private run boats, including hire boats.

Can someone explain please!

[BroadScot]

Geoff,

 

It's a 60/40 split with part of it for heating. I believe its to do with EU regulations. Hence dearer. Someone will be along to explain fully soon I am sure.

 

 

Iain.

[Oddfellow]

Iain's mostly right.

 

The 60/40 split is best explained not by heating but by propulsion. The boats are classed as pleasure vessels, not commercial, hence the tax.

 

60 at full rate for propulsion

40 at reduced rate for non-propulsion.

 

October 2007 is when the EU stick it's nose into this one, so it's hardly new.

[Stranger]

the point being if i pull into a boatyard for fuel whats it going to cost at the pump as the fuel at trade is available at arround 49.5 pence a litre for 3000 litres delivered at todays prices this is what i was asking when you can pay £1.46 a litre in Beccles i would say thats a bit on the steep side

[Matt]

Would you need to insure your 3000 litres?

Would you need to purchase and maintain the equipment to dispense your fuel?

Would you need to pay someone to dispense your fuel?

Do you have general overheads that you need to cover that assist in your fuel sales? Office staff for instance?

Do you need to repay a loan that bought you your first 3000 litres of fuel and installed your equipment?

When I first bought a share in evening shadow about 6 years ago I remember filling up at Boulters and it was 96p a litre. Those were the days ;-)

[MauriceMynah]

Sorry Stranger, but you're a bit wide of the mark on this one. It's not the price of the fuel that matters, it's the use it's put to.

The Duty paid on fuel for propelling a vehicle/vessel is at a different rate from the duty paid for heating fuel. That's why you keep reading about that 40/60 split. I don't have the rates to hand just at the moment but the differences are considerable.

You might have noticed that when you buy your boat fuel (IIRC), you have to sign a form confirming the amount bought and that it's been put in a boat. The boatyard then adds the duty to the cost then the VAT.

OK, I might have the details a bit squewed but in principle, that's what's going on.

Basically, in addition to Matt's points, it's a shed load of paperwork for not that much profit. We're lucky that there are yards still prepared to do this for us, and if they manage to make a few quid extra while the barrel price is low, good luck to them. 

If I do remember correctly, the fuel duty on diesel for propulsion is about 60p per litre. Add that to the 50p per litre as you stated being the cost, that's £1.10. Then there's the VAT.

 

So, if you bought 100 litres of diesel you could say that the 60% for propulsion costs you £66.00 and the 40% costs £21.00. That's £87.00, then add the VAT at 20% (£27.40) giving you a bill for £104.40.

This works out at £1.04 a litre. Now add the overheads for supplying the product (I have no idea what that works out at per litre) and the rest is profit.

 

When you think of all those figures, it really isn't as bad as you thought.

 

My figures allow for a bit of rounding and are not accurate, but not too far away!

I hope that all makes sense!

[Oddfellow]

Ask any fuel retailer how much profit there is in it (road or river). That's why every fuel forecourt has a shop.

 

There is NO money in fuel sales for a small business.

[SPEEDTRIPLE]

I had a discussion about fuel pricing and the cost comming down a little while ago with a colleague at work.. His point was "if the cost of a barrell of crude oil has come down by 25%, why has`nt the price at the pump come down by 25%?".

 

My answer to him was, when you break down the costs of add ons and logistics, and take those away, the cost of a litre of fuel is very cheap.

 

As far as tax is concerned, i heard on the radio, 64p in every litre is road duty, that leaves the cost of fuel at the pump plus 20% vat. If the cost of fuel is going down, so does the 20%, but you`re still paying the 64p road tuty (or whatever it`s called) So, if a litre of deisel at the pump is £1.12 (local average down here), take away that 64p, and it leaves you with 48p per litre. Now devide that by 6, and take away 1/6 which would amount to 20% of the pre vat price, and you`re left with 40p. That`s the cost of a litre of deisel without any tax at todays low prices.  Now go back and think that deisel was around £1.40+ per litre not that long ago, and you`ll see the cost of fuel has dropped by a huge amount.

 

Then consider this, Out of the 40p per litre at the moment, there`s the cost of refining, delivering, storing in tanks that have to be regularly maintained and cleaned, served at a station. Now think of all the bills involved in that process.

 

The cost of getting it to the refinery, wages, energy costs etc, then there`s the cost involved in transporting to the stations. Tankers running costs and wages etc. then there`s the cost of service stations, energy for lighting and pumping, staff wages etc, and yes, as Andy says, if they don`t have a shop, they won`t make a living, let alone prifit.

 

When you think about the total costs out of getting that fuel  into your car / boat etc, then you`ll understand that 40p per litre, pre tax, is a very reasonable price, especially when you think back to when deisel was £1.40ish per litre at the pump.  So with that in mind, the price reduction in per litre terms is a great deal more than 25%.