Petrol prices not falling fast enough

[ubermaus]

http://www.bbc.co.uk/news/business-29924710

 

Motorists being taxed again! Even taking into account the falling pound against the dollar it should be 10-15p cheaper per litre.

[truman]

http://www.bbc.co.uk/news/business-29924710

 

Motorists being taxed again! Even taking into account the falling pound against the dollar it should be 10-15p cheaper per litre.

 

Where do you get the 10-15p values from?

[Obelix]

The way that the crude price has been falling recently - it started tanking a good couple of months back but pump prices only started moving last week. That's too long for the prices to work through the refinery system - this time they are hanging on to high values for too long I think.

[ubermaus]

Where do you get the 10-15p values from?

 

Well it's only fallen 5% at the pumps, crude oil has fallen 25%!

 

---------- Post added 06-11-2014 at 13:33 ----------

 

The way that the crude price has been falling recently - it started tanking a good couple of months back but pump prices only started moving last week. That's too long for the prices to work through the refinery system - this time they are hanging on to high values for too long I think.

 

It's an excuse for oil companies to make greater profits - I don't blame the petrol station owner.

[truman]

Well it's only fallen 5% at the pumps, crude oil has fallen 25%!

 

 

Crude isn't the only cost in petrol/diesel manufacture, it amounts to about 30% of the overall cost..the other stuff still costs the same..I don't think you can expect a 25% cut in fuel price if crude goes down by 25%

[geared]

Precisely, most of the cost of fuel is tax anyway (and tax on tax) the price of crude isn't such a driving factor.

 

Also we buy crude in US dollars, but the pounds been slipping down against the dollar so we're getting less crude for our pound as a result.

[ubermaus]

Crude isn't the only cost in petrol/diesel manufacture, it amounts to about 30% of the overall cost..the other stuff still costs the same..I don't think you can expect a 25% cut in fuel price if crude goes down by 25%

 

Well I agree but a further 10-15p isnt 25%. Petrol was up to £1.30 per litre.

[L00b]

I don't think you can expect a 25% cut in fuel price if crude goes down by 25%

I don't think anybody with a brain is expecting a 25% cut in fuel price...But anybody with a brain also knows that the distribution system (well-to-pump) has been notoriously slow to transition the cost savings to the headline pump price, even when factoring in the long lead times inherent to volume oil buying and production and the fact that the crude price is only a portion of the total headline pump price.

[ubermaus]

cheapest ive seen it is £1.23

[truman]

I don't think anybody with a brain is expecting a 25% cut in fuel price...But anybody with a brain also knows that the distribution system (well-to-pump) has been notoriously slow to transition the cost savings to the headline pump price, even when factoring in the long lead times inherent to volume oil buying and production.

 

I'm not disputing the speed of the drop..just the size that ubermaus seems to think should happen..