UK petrol price jumps above 1.50 as oil costs rise Fuel prices have hit record highs...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
UK petrol price jumps above £1.50 as oil costs rise Fuel prices have hit record highs in the UK as Russia's invasion of Ukraine continues to affect global oil prices The average price of petrol jumped to £1.51 a litre, while diesel increased to £1.55. The cost of filling a 55-litre family car with unleaded petrol is now £83 or £85 for diesel. The price of Brent crude oil rose by 4.6% to $102 barrel after Western nations imposed new sanctions on Russia - one the world's largest energy producers. Petrol price movements in the UK are mainly determined by the price of crude oil, and the exchange rate between the dollar and the pound, because fuel, like oil is traded in dollars. Petrol also has a relatively low price elasticity of demand. UK consumers are already paying a high price for fuel, with demand surging following the easing of Covid restrictions. Steve Irwin, from fuel consultancy firm Portland, told the BBC that prices had also risen due to concerns over oil and gas pipelines which travel through Ukraine and carry Russian products. He said there was "potential for enormous supply disruption" Source: The BBC [Adapted extract] - March 2022 a. Explain using a diagram and the Information in the article, why fuel prices in the UK have risen UK petrol price jumps above £1.50 as oil costs rise Fuel prices have hit record highs in the UK as Russia's invasion of Ukraine continues to affect global oil prices The average price of petrol jumped to £1.51 a litre, while diesel increased to £1.55. The cost of filling a 55-litre family car with unleaded petrol is now £83 or £85 for diesel. The price of Brent crude oil rose by 4.6% to $102 barrel after Western nations imposed new sanctions on Russia - one the world's largest energy producers. Petrol price movements in the UK are mainly determined by the price of crude oil, and the exchange rate between the dollar and the pound, because fuel, like oil is traded in dollars. Petrol also has a relatively low price elasticity of demand. UK consumers are already paying a high price for fuel, with demand surging following the easing of Covid restrictions. Steve Irwin, from fuel consultancy firm Portland, told the BBC that prices had also risen due to concerns over oil and gas pipelines which travel through Ukraine and carry Russian products. He said there was "potential for enormous supply disruption" Source: The BBC [Adapted extract] - March 2022 a. Explain using a diagram and the Information in the article, why fuel prices in the UK have risen
Expert Answer:
Answer rating: 100% (QA)
Youve provided a detailed explanation of the SRAS equation in the imperfect information model which ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these economics questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Calculate e y for the following values of y: (a) y = 1 (b) y = 5 (c) y = -.5 (d) y = -2.5 (e) y = 3.1 (f) y = - I (g) y = .05 (h) y = .32 (i) y = 6.1 (j) y = -5.4
-
1. What kind of waves have wavelengths of the order of a few meters? 2. What is the frequency of a 3-cm microwave? 3. Show that the units of E = cB are consistent; that is, show that when B is in...
-
You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphite-like material in its tennis rackets. The company has estimated the information in the...
-
Five projects form the mutually exclusive, collectively exhaustive set under consideration. The cash flow profiles for the five projects are given in the table below. Information on each project was...
-
Miyamoto Jewelers is considering a special order for 10 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $389.95 and its...
-
The KLM Partnership, which uses the accrual method of accounting, is owned equally by Karen ( cash method taxpayer ) , and LM corporation ( accrual method taxpayer ) . Karen is a real estate...
-
Exhibit 4 in the case shows the average cost per passenger for British Airways. Classify the listed operating expenses per passenger as fixed or variable. (Note: Assume aircraft capacity is fixed....
-
1) A survey of 200 public universities indicated that the 25th percentile of the yearly tuition cost of the universities was $4600 and the 75th percentile was $7100. The minimum value was $2000, the...
-
What are information systems? Give three examples of IT-related internal controls What is the auditor's responsibility when evaluating IT systems? Explain the difference between operating software...
-
1. Brief history of Kmart 2. Kmart leaders made bad decisions: 2a. What bad decision was made that brought the company into trouble? 2b. What could the company have done to protect itself from these...
-
What distinguishes maritime law from other areas of law? Are there any subdivisions within maritime law? If so, what are they, and how are they distinguished from each other? What are some of the...
-
Theory and Fundamentals of Radar Operations. Explain the history of radar and the importance it has within the ATC system. How has it evolved to the equipment used by today's air traffic controllers?...
-
Terminology and Acronyms of the Different Accounting Institutions Instructions Identify the following acronyms referring to the accounting profession and explain the purpose of each of them. 1. FASB...
-
The following information is available about an investment project. Brogue Project Estimated outlay () Net cash flow for year 1 () Annual compound growth rate (%) best worst probable Project life...
-
Why do markets typically lead to an efficient outcome for buyers and sellers?
-
The following items are found in a company's financial statements: 1. Interest expense (credit balance) 2. Gain on restructuring of debt 3. Mortgage payable (payable in equal amounts over the next...
-
Access the financial statements of Bombardier Inc. for the years ended December 31, 2012, and December 31, 2011, from the company's website or SEDAR (www.sedar.com). Instructions Changes in non-cash...
-
Papadopoulos Limited (PL) sells retail merchandise in Canada. The company was incorporated last year and is now in its second year of operations. PL is owned and operated by the Papadopoulos family,...
-
Which mechanism of bacterial genetic transfer does not require recombination with the bacterial chromosome?
-
Explain why small deletions and duplications are less likely than large ones to have a detrimental effect on an individuals phenotype. If a small deletion within a single chromosome happens to have a...
-
Explain why inversions and reciprocal translocations do not usually cause a phenotypic effect. Then explain how they can do so in certain cases.
Study smarter with the SolutionInn App