$107.89 a barrel.....so, why are pump prices rising again?
Discussion
Well it's not like they purchase, refine the oil, turn it into petrol, and ship it to the garage the same day. Imagine they purchase it in advance, and we are still getting the follow on from the previous higher prices.
Plus they are a business, and they are never fast to reduce their prices.
Plus they are a business, and they are never fast to reduce their prices.
I seem to remember someone (the petrol companies IIRC) saying that when prices rise, they absorb the increase for as long as possible because they care about us motorists but, therefore, they don't pass on the decreases immediately to compensate.
But what this means, essentially, is they don't care about the motorist at all. All they're doing is postponing when they get their money. If they really cared about us, they'd soak up the increase for as long as possible but pass on the decrease as soon as possible (I realise this is not a workable business model but I resented the inference that the companies were benevolent).
But what this means, essentially, is they don't care about the motorist at all. All they're doing is postponing when they get their money. If they really cared about us, they'd soak up the increase for as long as possible but pass on the decrease as soon as possible (I realise this is not a workable business model but I resented the inference that the companies were benevolent).
Edited by Landlord on Friday 5th September 09:27
dgb00 said:
And I suspect the oil companies are just greedy.
Maybe, but at the moment they need to be on the offensive for PR.They run the risk of being singled out as the cause for high fuel prices, and this could lead to some major issues for their business in the long term. Think forced break-up of the businesses, increased regulation, windfall taxes and the like - they face some extraordinary times and as a whole they need to be very careful.
Increased taxes for oil companies are a very real prospect around the world, and if the public sees them being greedy then its more likely to happen. The problem is that they often have very little control of what the end-user price is. Retailers often profiteer and governments charge massive amounts of tax, but it is the oil companies who get singled out....
Dangerous times.
dgb00 said:
And I suspect the oil companies are just greedy.
Yes they are greedy, what they want to do is push prices up so high that no one buys any petrol. The when no one can buy any petrol they're going to use the petrol they've saved to buy all of the food and sell that for 1000's of times more than current prices.I read it on the internet.
yes I have completely given up on answering posts like this sensibly, as there seem to be about 10 a week of them.
Edited by Timmy35 on Friday 5th September 09:35
Timmy35 said:
dgb00 said:
And I suspect the oil companies are just greedy.
Yes they are greedy, what they want to do is push prices up so high that no one buys any petrol. The when no one can buy any petrol they're going to use the petrol they've saved to buy all of the food and sell that for 1000's of times more than current prices.I read it on the internet.
yes I have completely given up on answering posts like this sensibly, as there seem to be about 10 a week of them.
Edited by Timmy35 on Friday 5th September 09:35
chris_w666 said:
Timmy35 said:
dgb00 said:
And I suspect the oil companies are just greedy.
Yes they are greedy, what they want to do is push prices up so high that no one buys any petrol. The when no one can buy any petrol they're going to use the petrol they've saved to buy all of the food and sell that for 1000's of times more than current prices.I read it on the internet.
yes I have completely given up on answering posts like this sensibly, as there seem to be about 10 a week of them.
xiphias said:
chris_w666 said:
Timmy35 said:
dgb00 said:
And I suspect the oil companies are just greedy.
Yes they are greedy, what they want to do is push prices up so high that no one buys any petrol. The when no one can buy any petrol they're going to use the petrol they've saved to buy all of the food and sell that for 1000's of times more than current prices.I read it on the internet.
yes I have completely given up on answering posts like this sensibly, as there seem to be about 10 a week of them.
off_again said:
dgb00 said:
And I suspect the oil companies are just greedy.
Maybe, but at the moment they need to be on the offensive for PR.They run the risk of being singled out as the cause for high fuel prices, and this could lead to some major issues for their business in the long term. Think forced break-up of the businesses, increased regulation, windfall taxes and the like - they face some extraordinary times and as a whole they need to be very careful.
Increased taxes for oil companies are a very real prospect around the world, and if the public sees them being greedy then its more likely to happen. The problem is that they often have very little control of what the end-user price is. Retailers often profiteer and governments charge massive amounts of tax, but it is the oil companies who get singled out....
Dangerous times.
dgb00 said:
True. I can't blame them for it - they are a business and provide a product. Quite frankly, for a litre of processed hydrocarbons to end up in my petrol tank, having started off as dead fish under the seabed, for only £1.09 is a bargain.
Yeah, but it gets worse, take off the 75% government tax and the 2% margin for the retailer and then you have a spectacular figure where they have to get it out of the ground / sea, transport it, refine it, transport it again, store it and then sell it to the general public.Its cheaper than milk and water.....
And we aren't running out of it either!
Badgerboy said:
Well it's not like they purchase, refine the oil, turn it into petrol, and ship it to the garage the same day. Imagine they purchase it in advance, and we are still getting the follow on from the previous higher prices.
Plus they are a business, and they are never fast to reduce their prices.
Its mainly the latter though.Plus they are a business, and they are never fast to reduce their prices.
When the price per barrel rises, the forecourt price jumps almost immediately. Any drops in price of oil do not see a similarly rapid drop in price.
Timmy35 said:
chris_w666 said:
Great stuff I have £100 to invest do you reccomend Oil, Gas or Mars Bars as the strongest prospect?
Well personally I'd suggest you invest it in 6 sex sessions with prostitutes ( at £15 a go ) and you'll still have £10 left over for a cigar and a pint afterwards. clonmult said:
When the price per barrel rises, the forecourt price jumps almost immediately. Any drops in price of oil do not see a similarly rapid drop in price.
It would be interesting to see a graph of price against time, with profiles for crude oil and petrol, to see if this theory is actually true? Any boffins out there got access to the data?My feeling is that we NOTICE immediately when the price goes up, but small falls do not registier in our consciousness straight away?
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