No Petrol reductionWHY??

I see that the global price of OIL has dropped even further a fortnight ago or so it was trading at aroung $90 a barrel ,then it went down to $87 a barrel as of yesterday it's down as far as $77 a barrel YET STILL NO REDUCTION AT THE PUMPS . Just what the hell is happening it does not take them long to increase the petrol prices when world OIL goes up , BUT when it falls we don't see anything what=so-ever , it bloody well stinks to hell what these companies get away with. YET this rotten evil GOV will do sweet F..A .. about it . Can't they see that by reducing costs at the pumps it would ease the inflation rate aslo , then again i only went to a Secondary Modern School ..
G.B.

The cost of crude may fluctuate but the cost to manufacture, store, transport and distribute petrol doesn’t. It generally goes up. Should we pay all the refinery workers and transport drivers less this month because the price of crude has dropped slightly? How would that go down with them do you think?

It takes time for oil price fluctuations to filter through the system.It is greed on the forecourts.

recently called the rocket and feather syndrome, Prices raise like a rocket and decline like a feather,

GB

Although the retailers have pushed up margins on fuel the refiners have to buy forward which means that the prices we pay today are based on oil purchased months ago.

GB

Although the retailers have pushed up margins on fuel the refiners have to buy forward which means that the prices we pay today are based on oil purchased months ago.

Its started to fall again at the Shell garage near us, 155.9 diesel

I do not want to come across as obnoxious Gaffer and retep1949/
But i do not agree with both your comment 's ,for one reason is that compared with other european countries they can and hold huge stock's thus they can can buy in advance ,BUT in the UK we have VERY ,VERY limited capacity to" buy in" this was bourne out by the GOV. I believe that the germans have on tap some 4-6 months of stock ,while in France they also have up to 4 months or more , yet as i say if we were to have an emergency we would be struggling after 4-6 WEEKS ,YES WEEKS , hence my argument that i do not subscibe to your theory's , but i do appreciate your comments too .
We all know irrespective of what's happening in the world the price at our pumps should be around the £1.00 per Litre ,though the main problem is that we have been hoodwinked into the price per litre's instead of per gallon it's all a matter of being brainwashed because i don't know any car maker that tells me this car etc will do say 40 mile s to the LITRE it's always to the gallon and that would shock ordianary folk when the realise how mush extra they are paying ,excuse my rant it's over now !!!!!!!!!!
G.B.

Golden Bear

No, it does not work that way, they don't buy it and store it, they agree to pay a certain price for it in the 'future' they buy it in advance, even though the oil is still in the ground, and by doing it that way, it guarantees the supply of oil.

TTS

Again i have to disagree with you TOM i have read and also heard it on TV that other European Countries have and hold LARGER stocks of OIL than we do . thats all i was saying .
GB

Do larger countries like France and Germany have more vehicles on the road than the UK do? Maybe that's the reason why. Just a thought.

The UK doesn’t have enough refinery capacity to process the amount of petrol and diesel required. A significant amount of the finished products are imported leaving us exposed to the market and currency fluctuations.

If you buy oil at $90 and store it in large tanks and then the price drops to $77 does it not follow that you're now stuck with a lot of higher priced oil.
Therefore until you've got rid of that oil the price of petrol /diesel will remain high?

Just a thought,GB.

Not long ago I was in Iceland and saw a sign advertising 'cheap petrol' - £5 a litre! That was actually cheap for Iceland.
USA fluctuates but is generally substantially cheaper that the UK. Americans will grumble if a litre gets to a dollar.
The cheapest fuel is in Venezuela at 2p per litre.... it appears that there are fat cats making fat profits.
As for the Wigan area - I tend to get my premium diesel at Costco in Haydock which is always favourably cheaper than surrounding fuel stations (but you have to be a member and there's always a queue!).

Golden Bear

Can you explain 'WHY' holding larger stocks of oil, keeps prices lower ?

Petrol 1-46.7 and diesel 1-54.7 at Morrisons River Way Preston today.

One day last week, there was an article on MSN, entitled cheapest fuel in the country.

There were a number of contenders, but the number one slot went to 'Newton le Willows'!

I do not recall if it made explicit which particular outlet.
And it is always possible that it was cheapest on the day in question, not necessarily at other times.

TTS /
Because dear Tom those countries will almost ceratinly have bought large stocks in when the global price was low ,BUT this shower who alledgedly try to run this country would NEVER dream of doing that would they????
GB/

Golden Bear

But how do they know when the price of crude oil has 'bottomed' and it is the right time to buy it ?

GB

It’s not just the cost of the product, the buyers have to factor in shipping and currency fluctuations. Shipping rates are just getting back to something like reasonable order after a period of stratospheric increases and demand exceeding supply.
If the producers sniff a better price by waiting they will leave a tanker at sea before deciding its destination.