With over 100 years of experience in the fuel industry, we believe there is no question or problem that Portland cannot answer or help you solve. We want to hear your questions and issues with regards fuel buying, fuel quality, fuel consumption, petrol forecourts, grades of fuel, refining etc, etc, etc. The list really is endless and we would like you the fuel user to test us so we can help you!
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Read our forum questions below:
February 16, 2011 Why is there such a difference in price between Brent Crude and West Texas Intermediate (WTI)?
Technically speaking, Brent crude is able to produce greater amounts of diesel and jet fuel, which have greater world-wide demand than the petrol rich WTI. Nonetheless, both grades should show a similar price, as they are both used as markers for world crude prices. Increasingly though, WTI is becoming an indicator only of North American markets and in particular, the record high inventory position at Cushing Pipeline Terminal in Oklahoma.
The reasons for these high stock levels are myriad, but the sagging US economy, limited pipeline access out of Cushing and a wish by the US Petroleum Reserve to build strategic stock all play their part. Brent on the other hand, reflects booming oil demand outside of the US. In addition, physical supply is not limited by any landlocked oil terminal and the product index has been well marketed by London’s Petroleum Exchange, so that it really has no serious competitor on world oil markets.
A question from Douglas in Hackney
January 26, 2011 What is the difference between Gasoil (Red Diesel) and Diesel?
There is no major difference between Gasoil and Diesel. Indeed, this is the reason that red-dye is added to Gasoil by Customs & Excise (HMRC), to stop consumers using it in their normal Diesel cars. If caught using Red Diesel, drivers can face hefty fines and sometimes a custodial sentence – HMRC take these things very seriously.
From a technical spec, the only difference between Gasoil and Diesel is the sulphur content. Gasoil can contain up to 0.1% sulphur content, while Diesel can only contain 0.001% sulphur. As such, Gasoil has a lower production spec and costs circa 1ppl less than Diesel in the markets. However, it is only when you factor in the difference in Government tax (called fuel duty) for each grade, that the real difference in price can be seen. Gasoil duty is 11.33ppl, whilst Diesel is 58.95ppl. All in, a difference of circa 48ppl for the same product!
NB: The duty rates were correct at the time of answering but have subsequently changed on the 23rd March 2011 to 11.14ppl for Gasoil and 57.95ppl for Diesel.
A question from Robert Dale in Gateshead
January 20, 2011 Who is the devastatingly handsome Commercial Director and how can I meet him?
As you know Joe, the devastatingly handsome Commercial Director is you and I suggest you get back to work and / or the sunbed.
Joe from York sent this from his Blackberry
January 7, 2011 How much petrol and diesel is sold through those 9,000 petrol stations every year?
Total sales of petrol in the UK amounts to 23,850,000,000 litres and 24,850,000,000 litres of diesel. Remember that not all diesel is sold via petrol forecourts, as many bulk users of diesel (hauliers, bus companies etc) have their own tankage. However, to put these volumes into perspective, 48,700,000,000 litres equates to 1.4m petrol tanker deliveries per annum!
Fairly promptly, Bob emailed back
January 6, 2011 How many petrol stations are there in the UK and who is the biggest operator?
Great question! The total number of petrol stations in the UK is around 9,000, down from about 20,000 in 1990. BP have the most branded sites in the UK with 1,175 sites, followed by Texaco (1,030) and then Shell (925). It is worth bearing in mind that BP and the others do not necessarily own all of their sites and more often than not, sites are known as “Dealer Sites”, whereby small businesses agree to buy all of their fuel from (eg, BP) in exchange for branding the site (eg) in BP livery.
Bob Petersen in London asked this
December 15, 2010 When the media refer to crude oil, they always talk about 'Brent'
Historically, Brent crude was the major production grade in the North Sea and as such, became what in trading terms is called a “marker grade”. This means that when oil prices were published, rather than publishing all the different types of crude oil from the North Sea one price was published as an indicator of the value of oil in the North Sea. With the consolidation of oil trading around London and Rotterdam, Brent Crude became a marker grade for Europe and is now seen as THE benchmark crude price around the world. Clearly, our American cousins didn’t like this so created their own marker grade called WTI (West Texas Intermediate) – another type of crude, this time from the Gulf of Mexico.
This question comes from Sally-Anne Lewis in Northampton