Price of Oil

  ulrich 19:43 09 Sep 2008
Locked

Is now below 100 dollars a barrel when will the price at the pumps drop?

  Forum Editor 19:49 09 Sep 2008

the price at the pumps should fall as soon as the $100 oil becomes petrol and is delivered from the suppliers. The petrol you're buying today isn't $100 a barrel oil.

  ulrich 20:02 09 Sep 2008

I understand you but the price of oil has been falling pretty quickly. I know it's an old chestnut but as soon as oil barrel prices go up so do the prices at the pump.

I suppose I shouldn't complain as our glorious chancellor will soon put the old Duty up.

  GANDALF <|:-)> 20:03 09 Sep 2008

When oil was $140 a barrel it was not the oil used for petrol. Odd how petrol rises as soon as oil rises but seems to take a leisurely stroll south when the price of oil diminishes.

G

  octal 20:43 09 Sep 2008

"Odd how petrol rises as soon as oil rises but seems to take a leisurely stroll south when the price of oil diminishes."

It's called hysteresis :D

  ulrich 20:42 10 Sep 2008

Said there is too much oil now, so they are cutting production.

  ronalddonald 23:55 12 Sep 2008

we should go back to using horse and cart

  ulrich 18:04 16 Sep 2008

Now oil 95 dollars.

  Forum Editor 18:34 16 Sep 2008

and aviation fuel are urgently needed, and it's difficult to see how petrol retailers can justify a failure to reduce prices at the pumps.

  lofty29 18:51 16 Sep 2008

As I understand it the retailers have very little leverage on the prices at the pumps, it is the big oil companies who set the pump prices by setting the prices paid by the retailers

  Forum Editor 19:05 16 Sep 2008

Actually, one of the biggest market influences (apart from exchange rates) is from retailers, and specifically the supermarkets, who enjoy around 40% of total UK petrol sales.

Other retailers have no choice, when supermarket pump prices fall they must follow, or face the consequences - it's an extremely competitive market, and retailers usually can't afford to ignore fluctuations for very long. There's not much margin in petrol at the pumps - over 65% of what you pay is tax.

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