Wednesday, 6 August 2008

Black Gold.

The fuel companies seem to have it made. Crude Oil has just dropped in value by 18% since July. It now stands at $119.48 a barrel. When the price of oil rose to $147.27 the price of our fuel went up over night. Have just filled up the knackered old 4x4 I drive, £76 for the diesel. same as 3 weeks ago.

Someone, some where is making loads of money by being a tad tardy when it comes to reducing prices.


Anonymous said...

I can remember many years ago when the price of potatoes rose massively one season because of a drought (or blight...not sure). I don't think they ever reverted to pre-crisis price levels.

Anonymous said...

Unlike tax the base cost change in the supply does not reach the end user until the end user is using the product built from the unit priced at the lower price. What this means to us is that the price does not start to dip until the more expensive reserves have been used up. This is because, for some reason, the transport and processing companies want back what they paid plus the profits they calculated they would get.

Anonymous said...

Oh yeah, and then market forces can sometimes allow companies to be less than honest about that point meaning you have to wait for competition to drive the costs back down as the retailer in a fluctuating market errs on the side of caution if they want to stay in the business. A few stiff letters of complaint should start the ball rolling.

(Sorry to double post)

Ken Gregory said...

Fuel continues to maintain its price, howver the price of Sweet crude continues to drop. Now at below $115 per barrel.

by my calculatios, that means the price of a litre of derv should be £1.04. Bet we don't see that price again.