Oil price dropped but Diesel still high...Why?

jon_r_2

BP seem to be the worst, but why if the oil price has dropped and the exchange rate steady are these guys still ripping us off.
Diesel is still 116p/litre and IS LESS REFINED THAN PETROL.

They are quick enough to put prices up

Asda and Morrisons can drop prices why cant the others?

gjacques

Rip off britain again!!!
Looking back to Sept 2006 when oil was the same price as today ($70 a barrel) the price of unleaded was around 92 pence a litre much cheaper then today, deisel was probably the same price if not slightly less.

Cant understand it think its a case of creaming the profit again!!!

Us brits just sit back and take it....................

moonrakerz

The price of fuel at the pumps always lags on oil prices because the price of oil today is the price "out of the ground", it takes some weeks to be turned into petrol and get to the filling station.
Diesel is holding its price more because there isn't enough of the stuff - too many people bought diesel cars !

I hate to be an apologist for the oil companies - but their profit margins are about the same as the supermarkets ! They make huge profits because they have huge turnovers.

Stop bleating about rip-offs !!!!!! Learn a bit about how the oil industry actually operates not how the tabloid press and vote chasing politicians say it works.

gjacques

You dont work for BP do you????

savemoney

It takes 6 weeks for prices to reflect at the pumps, but it doesn't seem to work that way when prices increase

moonrakerz

gjacques wrote: »

You dont work for BP do you????

A very profound response !

moonrakerz

savemoney wrote: »

It takes 6 weeks for prices to reflect at the pumps, but it doesn't seem to work that way when prices increase

It didn't seem to, purely because the rise at the pumps reported on one day was the result of a crude oil price increase some weeks previously, not the one reported the day before !

dunstonh

The price at the pumps also didnt go up by the same degree the price of the barrel went up. So, you shouldnt expect it to drop the same way as well.

Diesel also has the other problem of demand and supply.

Debt_Free_Chick

moonrakerz wrote: »

The price of fuel at the pumps always lags on oil prices because the price of oil today is the price "out of the ground", it takes some weeks to be turned into petrol and get to the filling station.

Whilst I "buy" this argument, it doesn't seem to apply when the oil price increases. Then, the pump price seems to go up almost immediately

Debt_Free_Chick

jon_r wrote: »

BP seem to be the worst, but why if the oil price has dropped and the exchange rate steady are these guys still ripping us off.
Diesel is still 116p/litre

BP on the A21 in Sussex it was [STRIKE]199.9[/STRIKE] 119.9 last night!!! :mad:

Petrol was ..... 105.9, from memory.

dunstonh

There was a graph I saw a while ago that showed the barrel price overlaid with the pump price. I cannot remember the site but I will try and look for it. Basically it was two upside down V. The pump price was a wider, more shallow V and the barrel price was a a sharper, taller V. It showed the increases were not as much and did lag and it showed the same in reverse as it was coming down. The pump price appeared smoothed as it didnt go up anywhere near the same level of increase.

Wherever smoothing takes place going up then you should expect it going down as well.

Another issue not mentioend is that the barrel is priced in USD. Exchange rate can have an impact as well.