If the cost of oil goes down why are we still paying more for utilities?

Butterfly_Brain

Finally the cost of a barrel of oil has started to drop!
It will be interesting to see if the cost of Gas and Electricity goes down, after all the cost of oil is the excuse the utility companies use to raise our prices.
I won't hold my breath because they will probably scream Blue Murder because the Fat Cats want to screw as much out of the people of this country as they can.
How many of our old, sick and poor will have to suffer for their greed.
:mad:

Nilrem

The cost of oil may have gone down.
However the exchange rate between the US Dollar (which oil is priced in), and the British pound has also changed.

Effectively the pound has lost about 15% of it's value against the dollar in the past 4 months or so, as mid year we were getting roughly $2 for £1, now it's closer to $1.7/£1, so whilst the oil price has gone down for Americans, it's not gone down anything like as much for us.

Also, most of the cost of oil that we pay in the UK doesn't go anywhere near the "fat cats" in the oil industry, but rather to government (something like 70+% of petrol's cost goes directly in taxes, and that's after the taxes the oil companies pay for any profit made on initial extraction, refining and distribution)

deanos

Gas is based on the price of oil isnt it ?, petrol prices have come down so surely gas prices should follow , or is it not as simple as that

Butterfly_Brain

I am not talking petrol prices I am talking Gas and Electricity!

deanos

Good god :rolleyes:

Sol00

That's the comparison he was making Bfly brain.