Oil price falling, but is the price of petrol?

whowants2brich

Hi all,

This is the first time I've posted a link, hopefully it will work:

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=447509


If oil prices rise, petrol forecourts are quick to increase prices... But now that prices have fallen a bit - from $147 to $135, and may fall further - how likely is it that petrol forecourts will reduce their prices?

Has anyone reported the price of petrol or diesel falling in their area?

AdrianHi

I think we might need to give it a bit of time before we see oil price reductions feed through the system to a drop in forecourt price.

Conor_3

Takes a good few weeks to start filtering through as the refineries need to get through the stock they've bought at the higher prices first.

hewhoisnotintheknow

they are quick to put prices up though

Wig

I don't agree they are quick to put prices up, if anyone can show some actual data of how oil prices relate to avg petrol price, we may be able to draw some conclusions. As it is I think you will be basing your opinion on what you think you know about the prices which could be untrue.


If oil is now $135, we need to find the last date that it was that price and try to see what the price of petrol was then. That would be a starting point, but would not be neccesarily all that relevant.

Wig

It first went above $135 on June 10th 2008, came down a little bit and went back up to $135 on Jun23rd, for the following 2 - 3 weeks it dipped a bit and rose again past $140 and has now dipped back to $136.

I can't say I have seen any petrol rises in the last 3 weeks, round here it has been £1.20 li for weeks. Thus showing that the price does not rise with every oil price rise. They use IMHO long term averages to determine the price.

oil prices

And you can all think yourselves lucky that since oil prices have risen by 400% in 4 years that your petrol prices have not also risen by 400%.

If you discount the fuel duty, the price has only risen by 100% approx.

Markyt

hewhoisnotintheknow wrote: »

they are quick to put prices up though

No. You only notice when the price goes up - before it does, you have no interest in or idea of the price of a barrel. The rise brings it to your attention.

ArsenalFC

Well i used to keep an eye on the oil prices (along time ago) and when it was $60 a barrel a few years back I thought it was bad, but the price now is awful.

If petrol price rise by even 200% there will probably be a huge recession in the world. I think a recession is not that far off in the uk at the moment.

scbk

Yes the price of diesel has come down, was 132.9 last week now 131.9

Was in Glasgow/Edinburgh yesterday and saw it as low as 129.9!:eek:

whowants2brich

Thanks for your updates so far - it's good to know that in at least one part of the UK, prices have started to react... If it's going to be a few weeks for petrol prices to fall, hopefully the gas/electricity prices will change accordingly, and maybe even avoid the forecasted price rises...

rdj104

Local Morrisons has cut prices by a huge 4p/litre today. Petrol 114.9, Diesel 126.9!