Fuel prices – who gets what!

Oil prices have being dropping recently so now we should all be looking forward to much cheaper fuel for our cars. How does the reduction in the cost of the crude oil transfer to us ordinary people? Crude oil now costs $70 a barrel, but a little over a year ago  stood at $140 per barrel.

Where did this reduction go?

The truth is we don’t get the the % drop in the price at the pumps which we think we should .

Why?

This is the breakdown in % terms, on where the money goes!

  • 57% – Duty and tax: Paid directly to the Government . (The monetary amount per litre does not drop as the crude price drops. This is a set amount by Government)
  • 36% – Oil exploration Company: To source and refine the crude oil to make it usable.
  • 4% – Oil Company: To Market and Distribute the fuel.
  • 3% – Retailer: To stock and sell fuel to the end user. (Source: www.ipra.ie)

The price of crude oil is not set to rise anytime soon, nor can we expect to see a huge drop in fuel price at the pumps due to the fact that the tax take is set by Government as a fixed monetary amount per litre and not aligned in % terms to the price of crude oil.The reduction will only come from the portion which is dependant on the crude oil section  which is 43%.

Ever country adds tax and duty to the sale price oil as it is a necessary source of tax revenue to help run the state.

This may vary from country to country depending on where you live, but it is quite standard in most European countries, some take more than Ireland and some take less.

The fact that our VAT rate here in Ireland  is 23% also contributes to the high price of our fuel at the pumps.

Unfortunately tax is a necessary evil, so if the government reduce the take on fuel, have no doubt but they will add it on to something else.

 

 

How does car recycling work?

Car recycling is a complex business with many useful spin offs which help us reduce our carbon footprint and  makes our environment a much cleaner place. It also provides many sustainable  jobs in the process.

How does car recycling work?

  • When a vehicle is scrapped for recycling, it must be taken away by an Authorised Treatment Facility (ATF). All these facilities are licensed by the Government.
  • All such facilities depollute the car by removing all oils, fuels, anti freeze, brake fluids, air conditioning gases and any other environmentally harmful contaminants.
  • All of these contaminants are then disposed of in an environmentally friendly way  by the ATF.
  • The car is then stripped of the good parts which in the main are mechanical, (engine, gearbox,  suspensions etc.). These parts are labelled and shelved awaiting resale.
  • The body of the car is mostly left in tact until a part is needed to be removed for sale as space is always at a premium and it costs money to remove parts.
  • The operator constantly monitors the amount of unsold parts which have been in stock for quite a while.
  • The operator makes constant decisions about what stock to keep and what to put into the next phase of the recycling process.
  • Any parts which are not going to be retailed for repairing cars are separated into different bins, (metals, alloy, copper, plastics,batteries etc).
  • The panels and chassis of the cars are chopped up into small pieces or in some cases squashed into a small size for ease of transportation.
  • All this material is then sold  on to individual buyers who recycle it  and sell  for use all over again.

On average 84% of a vehicle can be recycled, and whilst re-use of the parts for repair is the first option for Dismantlers, they are doing a very impressive job in the recycling process.

One person’s junk is another person’s treasure’

To learn more about recycling visit: www.epa.ie