Oil Prices

ZygOte

Can someone enlighten me why it is that while the price oil is falling to an all time low that petrol stations have started to increase their prices again over the last week?

Time Magazine

Alex Tabarrok says it much better than I could. Link.

BenjAii

The Economist wrote: »

Alex Tabarrok says it much better than I could. Link.

I can't see this is replying to the OP's question ?

It is replying to the question, "Are retailer price increases
price gouging ?", after hurricane damage to some of Americas Gulf Coast oil infrastructure ?", by pointing out that this as reduced supply and that retail gasoline prices are decided by supply and demand and not historical cost of extraction.

The OP's question was why the cost to retailers of oil is going down, yet prices have been increasing.

cavedave

The OP's question was why the cost to retailers of oil is going down, yet prices have been increasing.

Because we will buy this more expensive petrol.

Time Magazine

BenjAii wrote: »

The OP's question was why the cost to retailers of oil is going down, yet prices have been increasing.

Stealing some quotes from my link: "Many people think that price is determined by historical cost. Price is never, ever, determined by historical cost. Price is determined by supply and demand. If you want to blame anyone for the high price blame your fellow buyers not the suppliers. It's buyers who push up prices in a competitive market and it's suppliers who push prices down!"

V22

Well even though i have a fuel card funded by my job I still go to the lower priced stations. Its awkward but if everyone went to the lower priced stations prices would have to drop. I recently went into a petrol station and asked why prices had risen over the past week and the minimum wage eastern european worker told me that they just look at the prices that the other local stations are charging. Supply and Demand my a**e! They`ll STILL take any chance to rip people off.

boomshackala

ZygOte wrote: »

Can someone enlighten me why it is that while the price oil is falling to an all time low that petrol stations have started to increase their prices again over the last week?

Because believe it or not oil has increased by 44% in a couple of months (mid thirties to 50 dollars a barrel) at time of OP's post. There is a lag of a couple of weeks at the stations.

Oil prices have again collapsed to that level

http://www.bloomberg.com/markets/commodities/energyprices.html

Fratton Fred

Don't forget currency fluctuations as well. Oil is traded in dollars, you buy it in euros.

iplogger1

Can anyone explain why diesel prices are now dipped on average 3c per
litre cheaper than unleaded petrol ?
When the prices at the pumps were high during the spring/summer, diesel
was priced considerably higher than petrol. At the time someone told me
that was due to the cost of refining diesel.
Why are the relative prices of the two completely reversed now ?

-ipl

JackieChan

The 8c duty per litre added to petrol(nothing added to diesel) in the budget could be a large part of that too.

ionix5891

watch this video explains alot

http://www.cbsnews.com/video/watch/?id=4713382n

Clytus

When you see the price of Oil you need to also factor when its priced for delivery.