Surely with crude oil trading at $85 p/b we should be seeing prices for petrol below £1 p/l and diesel not far behind??
It seems that prices only go down when the supermarkets lower prices and the other major fuel supplies reluctantly reduce theirs using “locally matched” as a reason to keep prices high especially ones on motorway’s where they effectively have truckers over a barrel (no pun intended) as they have no choice but to fill up what ever the price as they can’t exactly drive into town’s looking for the cheapest fuel.
When oil prices go up fuel prices go up, BUT when oil prices come down ther fuel prices dont a typical example is British Gas who when the price of gas plummeted last year just before trheior annual 30% price increase they didnt drop the prices to match the wholesale prices.
Im pretty sure its the same with petrol and diesel oil is dropping in price quite a lot i passed a petrol station on the3 A1 today just north of Grantham yesterday diesel was £1.20 a litre today it was £1.23.
Using a credit card can give comnpanies up to 56 days or more credit im pretty sure a fuel card only gives 30, the redemption on a credit card such as cash back or loyalty rewards can be just as much as the penny or so some get off the fuel price.
The problem with fuel prices is current stock …
For example say ASDA fuel supply was bought at $100 a barrel.They have to sell fuel at A price to recoup that and still turn profit.
Depending on how much fuel they bought at that price then you won’t see prices drop until that £100 barrel stock has gone and they go onto $89 barrel stock.
Make sense ?
oil reached a high of about $150 a barrel. That has now dropped…
but
When oil was $150 a barrel the exhange rate was approx $2-£1.
Now its more like $1.70-£1.
The decrease has been swallowed up by the currency change.
As oil is sold in dollars we are subject to currancy changes as well as the basic price of oil!
Prices don’t vary as much as they could, if the vendors were minded to.
Just bought heating oil; spot price 52.5ppl, only 4p more than last year. Has been up to 64 ppl, though, and according to every one of the four suppliers I got quotes from, it can move up or down by as much as 5p a day. Often it’s just luck that you get a good price.
In Canada (and I daresay the USA as well), fuel prices routinely change on a daily basis; a wise motorist fills up on a Wednesday, since prices rise towards the weekend then drop back again.
diesel is more expensive because of it takes longer and costs more to refine it…the oil companies hardly make any money on the pump price they make all the money on exploration/drilling etc etc
dogthehunter:
diesel is more expensive because of it takes longer and costs more to refine it…the oil companies hardly make any money on the pump price they make all the money on exploration/drilling etc etc
That’s odd,diesel was cheaper than petrol for a long time.I thought UK was almost self sufficient in oil ,am I wrong? No doubt the Gov.chooses to sell it to China instead of supporting it’s own economy with cheap fuel.
dogthehunter:
diesel is more expensive because of it takes longer and costs more to refine it…the oil companies hardly make any money on the pump price they make all the money on exploration/drilling etc etc
That’s odd,diesel was cheaper than petrol for a long time.I thought UK was almost self sufficient in oil ,am I wrong? No doubt the Gov.chooses to sell it to China instead of supporting it’s own economy with cheap fuel.
I was always leas to believe that they made diesel out of the “dreggs” of crude oil so was in fact cheap to produce but think some one ealier said they now have to refine is more than they used to so that bumps up the prices… not that TAX does’nt help either…
