Janspeed

iTrader: (1)

.............so why the **** am I still paying for fuel at the $130-$140 per barrel price????

So much for the fuel prices going down with market trends!

If it were to go up again tomorrow, they would up the price in a blink of an eye!

Tossers!

nathanb

iTrader: (1)

it's now 97.9 by me. Can't complain really!

Snazy

$67 a barrel and down to 97.9 round ere too. Not far off the 94.9 it was before the hikes started

Janspeed

iTrader: (1)

Well here we are STILL paying 1.50ish Euros per litre of 98 octane.......

TelBoy

Janspeed, the oil companies' answer to this is the USD/GBP exchange rate, since oil is quoted in USD.

If i asked you what the current USD/GBP exhange rate was, what would you say? About 2? A lot of people would.

It's actually 1.6350 at the moment, that's a hell of a difference from what it was at the height of the oil price peak.

Nonetheless, the fall in petrol should have been greater even taking account of the move in the FX rate. The extra amount they're charging is known technically as "greed".

Janspeed

iTrader: (1)

Seems to be the most traded "commodity"!

Dedrater

It takes several weeks to filter down to us though doesn't it? Due to how long it takes to refine etc

Janspeed

iTrader: (1)

Strange, because every time the prices goes up, 15 mins later you are paying more, when it goes down it takes 15 days.......

Torquemada

Down to 104 in Ottershaw/Weybridge for shell vpower, was 125/130 not long ago.

PeteBrant

It *should* depend on the cost of the fuel to the petrol station. It doesn't though.

If the price of oil goes up, they will up the cost within 5 minutes.

If it goes down they will take weeks over it.

Its quite a common phenomenom. Its called being a bunch of greedy ****s.

The best bit is when Franchisees actually want us to feel sorry for them over having to sell fuel at a loss. - Live by the sword die by the sword you parasitic ****ers.

Dieseldog

... and why is Diesel 10p/litre more. I thought it was easier/cheaper to refine (comes off the fraction distillation tower-thingy sooner doesn't it?), and I wasn't aware of higher taxes levied on it by Dear Leader

Anyone in the know care to explain?... I've heard of a "shortage of refining capacity", but it's always struck me as a convenient line we all swallow, rather than the truth...

TelBoy

Apparently that really is the reason, officially at least. The surge in sales of diesel cars has outstripped the ability to refine enough of the fuel, but it's a weak argument, given that there IS enough diesel to go round. Doncha just love being a cartel's ragdoll?

Janspeed

iTrader: (1)

It is easier to refine, but as more and more people use it, they up the price!
Nice ******* hey?

PeteBrant

Plus of course as the demand for Diesel rises, the demand for Petrol reduces.

Last year the split was 53/44 (with 2% alternative fuel) or soemthing like that. 10 years ago it was almost 90/10.

So this lack of refining capacity is absolute bollocks because your "pot" of oil remains the same. Its just how you split it.

TelBoy

I'm not sure it necessarily is complete bollocks, if the refining process is completely different. You can't just make diesel in a petrol refinery, as far as i'm aware, but i'm no expert? Still a weak argument for a higher price though, whichever way you look at it.

Dedrater

All i know is if i were French and living in France right now, i would of attended a few riots and thrown a few chairs about over the price of fuel, this is about the one thing the British need to take from them, not to take things like this lying down.

PeteBrant

It all happens at the same plant as far as I am aware - Different "points" of distilation yield different product. Oil is heated, and depending at what point you syphon off liquid, that liquid will have certain properties. So near the base of the "tower" you will have Diesel, and near the top you will have petrol.

jonny_693

iTrader: (5)

I wonder if Brown will be doing another U-Turn on his 2p a litre hike now the price has dropped.

ethanrob

iTrader: (3)

I would like to hazard a guess at the reason diesel is 10p per litre dearer!!!!

Could it have something to do with diesel drivers paying less for there car tax,and fewer fill-ups with said product,thus resulting in said oil company greedy *******s bumping up the price of diesel

as over on the mainland of europe,IIRC diesel is cheaper then petrol !

marcus

Flatcapdriver

There are various reasons why you won't see an immediate reduction following spot market price reductions which is effectively what you're referring to:

• The move to low sulphur diesel products required substantial investment by the petroleum industry so there will be some lag between the two as they recoup some of their investment.
• The price differential between diesel/petrol will remain because it is now that much more expensive to produce diesel conforming to low sulphur legislation.
• Seasonal variations come into play with demand for heating oil due to the colder weather impacting on diesel pricing (its pretty similar stuff)
• Typically there is a lag between price increases/decreases when comparing spot prices and pump prices but of course people only remember the bad news.
• Lastly, due to the length of the supply chain the effects are not always immediate as above. A retailer may buy product at today's prices at which he needs to make a margin but this won't be replaced with fresh product for 5-8 days at the lower/higher price.

• Definitely the last point - supply and demand. Take the driving season in the US as an example which during the summer months 'sucks' in petrol from all corners of the globe increasing the price producers can obtain for product.

Inventory issues alongside refining capacity also impact but I won't bore you with those.

PeteBrant

Conversely, could you bullet point why prices are put up within a day of a big hike in fuel prices?

Flatcapdriver

See point 4.

PeteBrant

Im not sure how this satisfies the question why rises are put on within hours. Drops take weeks.

Taking point 5, that *should* have resulted in a delay between rises in the price of oil, and the price at the pump. It demonstrably did not. Franchisees put thier prices up on a daily basis, despite having fuel they had bought some time before.

And now they want to keep thier prices up because of the price they paid for it?

Cake and eating it springs to mind.

Flatcapdriver

Inevitably some retailers will take advantage of the situation but if you look at any pricing curve showing the differential between crude spot prices and pump prices there is always a lag either way. Always has been and always will but the great British public (as ever) only want to wallow in the negativity of the situation whilst whinging furiously. So as ever on Scoobynet, when I'm trying to show the bigger picture, I find myself pushing water uphill because others have already entrenched their perspective and its pointless trying to shift it.

Kavalov demonstrated this a few years ago in an EU document. Google it and read it as I just can't be bothered...

GC8

An initial lag surely? After we have become accustomed to bad world news equating to a rise in fuel costs, then the lag virtually disappears.

Janspeed

iTrader: (1)

When in France learn about these riots, then export to the UK.

Cheaper than petrol.