oil price dropped why still 130ish at the pump

[christofmccracke]

The price of Oil has come down around 50 dollars a barrel iirc but fuel is still 130ish

why?

[K87]

When did oil come down by $50??

[Hudson]

Tax.

Isn't fuel something silly like 70p/l without any tax on it or something like that? or am i posting out of my arse again.

[Exige77]

Yes when ?

Please tell us.

Ex77

[K87]

Hudson said:

Tax.

Isn't fuel something silly like 70p/l without any tax on it or something like that? or am i posting out of my arse again.

Think it's quite a bit less than that, mid 50's maybe

[ewolg]

Brent crude $107 just now - pound against the dollar is reasonable so a 10 -15p drop should happen soon I would hope.

[Tinod]

It isn't an immediate effect as the fuel at the stations has already been bought and accounted for at a set price so give it a few weeks and it should correct down; though make the most as it will be back up in no time.

[Mx5guy]

ewolg said:

Brent crude $107 just now - pound against the dollar is reasonable so a 10 -15p drop should happen soon I would hope.

No, most of the cost is tax so it will only drop it by a few pence when the oil price is affected. It'll also take a short time due to the buying ahead.

[ralphrj]

ewolg said:

Brent crude $107 just now - pound against the dollar is reasonable so a 10 -15p drop should happen soon I would hope.

For petrol to drop in price by 15p/litre the oil price would have to fall by nearly 25%.

[Rude-boy]

Tinod said:

It isn't an immediate effect as the fuel at the stations has already been bought and accounted for at a set price so give it a few weeks and it should correct down; though make the most as it will be back up in no time.

This is the time old one i hear trotted out by the fuel companies. But like everything in life if they can find a justification to put the price up it takes 15 seconds.

If they can find a reason to put the price down, it takes 15 weeks and by then the base price of crude has gone up again so they limit it to a 1ppl decrease, knock off 3ppl and add 4ppl over the next 2 weeks or just leave it as is.

I am well aware the the vast majority of pump cost is tax.

I am well aware of the costs, investments and risks taken by the industry and supportive of them making large profits as a result.

That said you do get the feeling you’re being taken for a ride at times...

[Glosphil]

Rude-boy said:

Tinod said:

It isn't an immediate effect as the fuel at the stations has already been bought and accounted for at a set price so give it a few weeks and it should correct down; though make the most as it will be back up in no time.

This is the time old one i hear trotted out by the fuel companies. But like everything in life if they can find a justification to put the price up it takes 15 seconds.

If they can find a reason to put the price down, it takes 15 weeks and by then the base price of crude has gone up again so they limit it to a 1ppl decrease, knock off 3ppl and add 4ppl over the next 2 weeks or just leave it as is.

I am well aware the the vast majority of pump cost is tax.

I am well aware of the costs, investments and risks taken by the industry and supportive of them making large profits as a result.

That said you do get the feeling you’re being taken for a ride at times...

More by the Government than the petrol companies.

[Monty Python]

Oil has only dropped $20 a barrel from the end of July:

http://www.livecharts.co.uk/trend_signals/trend_fo...

[o0myles0o]

My local Shell station owner said that the last time the oil prices were low, the tankers sat off the coast of Wales until the price went back up. Shysters!

[homerjay]

been going about 1p a week round here.

back to 1.35 for 95ron now.

[DrTre]

o0myles0o said:

My local Shell station owner said that the last time the oil prices were low, the tankers sat off the coast of Wales until the price went back up. Shysters!

That instance was more to do with there being a glut of oil in the market due to global manufacturing going through the floor taking with it the price of oil.

That and the oil was, in the main, owned not by the companies themselves but investors who want to maximise their profit/minimise their loss.

ETA I admit, that doesn't explain the lack of response on the price at the pumps.

[C8PPO]

Tinod said:

It isn't an immediate effect as the fuel at the stations has already been bought and accounted for at a set price so give it a few weeks and it should correct down; though make the most as it will be back up in no time.

Tis indeed odd how the reverse is never true.

Rude-Boy said:

That said you do get the feeling you’re being taken for a ride at times...

Erm, isn't that what petrol's for?