'Gas Prices Could Reduce By 30%'

1carminestocky

No link as it's my headline! Why aren't we seeing these sort of headlines in the press put out by the energy companies? If they are to believed when they state the price of gas is inextricably linked to the price of oil (although one energy company employee on here has now decided it's now only 'loosely linked' :rolleyes: ), then let's look at the price of oil today. $105 a barrel and decreasing just about daily. Off it's high by almost 33% in a matter of a few weeks. If the correlation was made when the price of oil was hedging towards $150 a barrel that 'price of gas could increase by 70% over the next 2 years' why isn't it feasible that gas could decrease by a similar margin over the next 2 years? Or isn't it in energy company's interests to actually predict future decreases, only increases? :rolleyes:

mech_2

I haven't noticed petrol go down by 33% near me.

Conor_3

mech wrote: »

I haven't noticed petrol go down by 33% near me.

Gas is related to the price of crude....:rolleyes:

mech_2

And petrol isn't?

1carminestocky

mech wrote: »

I haven't noticed petrol go down by 33% near me.

I'm assuming by this you are claiming that your industry (energy) is actually 'less dodgy' than the oil industry? A slightly hollow (implied) boast, if you don't mind me saying. Energy companies and oil companies are probably the 2 most distrusted and disliked industries in the market place. It's a bit like saying Mengola is slightly less hated than Hitler. :rolleyes:

ceridwen

1carminestocky wrote: »

No link as it's my headline! Why aren't we seeing these sort of headlines in the press put out by the energy companies? If they are to believed when they state the price of gas is inextricably linked to the price of oil (although one energy company employee on here has now decided it's now only 'loosely linked' :rolleyes: ), then let's look at the price of oil today. $105 a barrel and decreasing just about daily. Off it's high by almost 33% in a matter of a few weeks. If the correlation was made when the price of oil was hedging towards $150 a barrel that 'price of gas could increase by 70% over the next 2 years' why isn't it feasible that gas could decrease by a similar margin over the next 2 years? Or isn't it in energy company's interests to actually predict future decreases, only increases? :rolleyes:

Good point - roll on! They cant have it both ways.:cool:

savemoney

I suspect they want to improve on there profit margins

1carminestocky

By getting as many punters as possible on fixed deals?

Cardew

1carminestocky wrote: »

By getting as many punters as possible on fixed deals?

The average household spends over £1,000 pa on energy. If prices dropped - and the customer believed those cuts would remain, I doubt that few would be deterred by a £25? penalty for moving from that fixed tariff.

I suspect that those on, say, the BG 2011 fix could easily get any leaving penalty waived if they moved to the latest Click tariff. Once on the Click tariff they could move again to another company.

beingjdc

1carminestocky wrote: »

let's look at the price of oil today. $105 a barrel and decreasing just about daily.

Do you pay your fuel bills in dollars? I don't, so I don't really see the relevance in looking at the oil price in dollars. It's pounds that matter, and while oil may be down 30% in dollars, the pound is down nearly 20% in dollars, so the real fall is more like 10% - tiny compared to the earlier rise.

mech_2

1carminestocky wrote: »

I'm assuming by this you are claiming that your industry (energy) is actually 'less dodgy' than the oil industry?

My industry? :rolleyes:

I'm not claiming anything. I'm making a statement of fact. I was hoping my hints would encourage you to work it out for yourself, but Beingjdc spelled it out for you.

A slightly hollow (implied) boast, if you don't mind me saying. Energy companies and oil companies are probably the 2 most distrusted and disliked industries in the market place. It's a bit like saying Mengola is slightly less hated than Hitler. :rolleyes:

"Mengele".

Why do we hate the energy companies? "Because they rip us off!" Why do we think they rip us off? "Because we hate them!" Hmmm. Circular logic?