Recession looming, shares crashing, pound plummeting, oil price rising, so Boris has now kissed goodbye to:
£20,586,719
There’s value for money, boys and girls.
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October 24th, 2008 by
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3 responses so far ↓
No matter what you say the oil deal was unfair on the people of Venezuela. Also oil prices have plummeted since September so I don’t know where you are getting your figures from.
Unfair on the people of Venezuela my arse. I worked out what % of their daily oil revenues went on the deal and it’s a tiny fraction. They lose rather more if the oil price drops a dollar.
“Also oil prices have plummeted since September so I don’t know where you are getting your figures from.”
Because I understand how the deal was structured and you don’t, so read and learn – firstly, it’s not related to the oil price, it’s related to the price of bus diesel.
It was set on the basis of the cost of 20% of the diesel used by London’s buses up to a cap of $32m. Since the price of diesel is still way higher than it was when the deal was announced, regardless of the falling oil price, we’d hit the cap every year (increasing bus mileage helps here). Therefore we’d get $32m. Therefore we periodically work out what $32m is worth in pounds and there’s your number. I’ve actually got it bookmarked on Yahoo’s currency converter.
Since the pound has gone down a huge amount recently, from $2 to nearer $1.50, your $32m buys a lot more of them, actually about £4.5m more than when Boris scrapped the deal.
On the bright side it makes London rather cheaper to visit, if anyone had any money.
[...] Ken had apparently spent on a lunch with Hugo Chávez. (Whether spending money on a lunch to seal a deal worth £20m/year to London is necessarily an indisputable waste is another [...]