How come we get held to ransom over fuel prices by one or two countries?

Cantona's Collars

Fuel prices are set to rise again due to the situation in Libya.How is it that so many other countries produce oil yet when even one place experiences difficulty or turmoil the price of oil rockets.
For the last few years it was the hurricanes in the Gulf Of Mexico and now it's Libya.Surely the other oil producers can simply increase output to make up the shortfall?
Travel to the Canary Islands and fuel is HALF the price it is here.I know taxes are different but even so a lot of garages seem to be price gouging aswell.:mad:

Sanjuro

Supply and demand.


/thread.

FearDark

Because we need it, we will pay anything for it.

listermint

zerks wrote: »

Fuel prices are set to rise again due to the situation in Libya.How is it that so many other countries produce oil yet when even one place experiences difficulty or turmoil the price of oil rockets.
For the last few years it was the hurricanes in the Gulf Of Mexico and now it's Libya.Surely the other oil producers can simply increase output to make up the shortfall?
Travel to the Canary Islands and fuel is HALF the price it is here.I know taxes are different but even so a lot of garages seem to be price gouging aswell.:mad:

COST to canaries is probably the same or similar,

TAXES however..............

kippy

Sanjuro wrote: »

Supply and demand.


/thread.

Not anymore.

Supply and demand have been the main factors of prices in the past but speculation has become an ever increasing factor in fuel costs.


We do need to become more self sufficient when it comes to our reliance on fuels.

It'd help if we didnt have such a high taxation system on fuels as well but thats a different rant,

Cantona's Collars

Sanjuro wrote: »

Supply and demand.


/thread.

My point is that one country can have such an influence on world oil prices.It's crazy considering all the other oil producers out there.

Earthhorse

We import over 20% of our oil from Libya.

http://www.economist.com/blogs/dailychart/2011/02/libyan_oil?fsrc=scn%2Ftw%2Fte%2Fdc%2Frelyingonlibya

bluto63

If I was selling a product and I could earn more for it than I currently am, I'd raise the price too. So would you. Free markets b*tch, deal with it

rossie1977

we are held to ransom by that cartel opec, oil is our drug and they are the barons

we need to gradually wean ourselves off the reliance on fossil fuels and look at more renewable sources of energy, we here in ireland have water and wind energy available

swingking

Now that the greens are out of government can we get rid of that carbon tax and relive some of that price increase on petrol

mathie

Over 60% of what you pay at the pumps is taxes and the money you pay with has already been taxed.

Sanjuro

kippy wrote: »

Not anymore.

Supply and demand have been the main factors of prices in the past but speculation has become an ever increasing factor in fuel costs.


We do need to become more self sufficient when it comes to our reliance on fuels.

It'd help if we didnt have such a high taxation system on fuels as well but thats a different rant,

I'm not saying I agree with supply and demand model for charging for things. And certainly taxation is a huge factor in determining price on the ground. But as the sources for oil begin to dry up, this is going to push prices through the roof.

I guess I was being flippant with my previous remark.