Petrol price rises

tjhook

We've always been told that the price of petrol at the pumps lagged world events by 5-6 weeks, and that this was true for both rises and falls in price.

I've generally taken this at face value, but never followed prices closely enough to verify it.

However, this morning I see warnings that prices are to rise sharply at the pump this weekend, following the Saudi attacks a week ago. Are we being taken for a ride? Would a fall be passed on as quickly? I can't help being cynical, but I can't see another explanation.

Ten Pin

Is this not some sort of subliminal price rise signalling to other retailers dressed up as news?

Similar strategy used by insurance companies that price increases are on the way, again dressed up as news.

What's the point of the CCPC....

NIMAN

This always happens, they just get away with it.

They filled up their underground tanks before the attack, but for some reason the attack has made the price of petrol/diesel they HAVE ALREADY PAID for rise.

Oil drops in price, that will take 6 weeks to filter through.

Go figure.

Darc19

Unfortunately there are very few journalists who actually check their stories for accuracy especially in the independent and herald.

Commodity websites give accurate details about price movements and prices rise about 10% from mid/end August levels in first week of September.

This rise is feeding into pumps this week. Probably about 3c-4c

Prices actually then dropped back for a few days and then you had the attack which led to a price spike of 15% for about 5 hours.

It fell back almost immediately, but not fully.

So if it stays at this level ($65 for Brent crude) expect a further 2c-3c in about 2 weeks.

All this information is available for even the laziest journalists with a few clicks, but then they wouldn't be able to write their crazy headlines.

BTW, did you see any story about the average 4c-5c DROP in prices since mid August? My local station went from 1.369 to 1.319 for diesel

punisher5112

Home heating went up within minutes if not before news broke of the attacks abroad on refinery.

It went up a day after also.

I got 500 litres at €355 after a jump from €340 then next day it was €370

Darc19

punisher5112 wrote: »

Home heating went up within minutes if not before news broke of the attacks abroad on refinery.

It went up a day after also.

I got 500 litres at €355 after a jump from €340 then next day it was €370

See my post above. World oil prices rose 10% at end of August within 3 days. That increase fed through this week.

Lazy journalists never bother to check facts that are available on every financial website including yahoo finance. Just Google "Brent oil price" and the figures are there. Check the one month chart and you'll see the spike in early September.

BTW kerosene also dropped in mid August. I've been watching it carefully as I needed a fill. Filled up when I saw the increase coming two weeks ago.

harr

NIMAN wrote: »

This always happens, they just get away with it.

They filled up their underground tanks before the attack, but for some reason the attack has made the price of petrol/diesel they HAVE ALREADY PAID for rise.

Oil drops in price, that will take 6 weeks to filter through.

Go figure.

You do know most places get those tanks filled once a week or a very busy forecourt a few times a week..
so next weeks delivery will have the new price from wholesalers factored in.

Del2005

It's €2 or €3 a tank full if the biggest rises come through. The price they charge for everything else in the store is a rip off yet people always complain about a few cent on the fuel.

Drive slower, check your tyre pressure and empty the boot and you won't even notice it

Vic_08

tjhook wrote: »

We've always been told that the price of petrol at the pumps lagged world events by 5-6 weeks, and that this was true for both rises and falls in price.

Whoever keeps telling you that is wrong.

tjhook wrote: »

I've generally taken this at face value, but never followed prices closely enough to verify it.

However, this morning I see warnings that prices are to rise sharply at the pump this weekend, following the Saudi attacks a week ago. Are we being taken for a ride? Would a fall be passed on as quickly? I can't help being cynical, but I can't see another explanation.

You seem to be in denial over living in a free market, you have no entitlement to purchase fuel for crude price plus set margin. Just like any other business fuel retailers can offer their products for whatever price they like.

Like it or not markets are affected by scares and rumours as much as by actual supply conditions so the story of a future possible shortage will always produce a price increase in advance of the shortage hitting the supply chain.

As is pointed out when these threads about being "ripped off" or "taken for a ride" appear the margins retailers make on fuel is low, far less than many other goods you don't see people shouting about.

tjhook

Vic_08 wrote: »

Whoever keeps telling you that is wrong.

Very possibly. But it's a common understanding, as we see on this very thread (Darc19states above that the pump price actually *is* tracking the oil prices). And the concept is reinforced by the motoring and fuel industries:

"But if it does then you will be looking at a significant price increase being evident at Irish pumps in around about four to five weeks time from now. That’s the normal length of the supply chain."

"It takes about 60 days normally for the crisis to seep through and what you see is the crude price up by 20%, more or less stable exchange rate,".

Vic_08 wrote: »

You seem to be in denial over living in a free market, you have no entitlement to purchase fuel for crude price plus set margin.

Thanks, it's great to have special people who can tell others what they're thinking.

Vic_08 wrote: »

Like it or not markets are affected by scares and rumours as much as by actual supply conditions so the story of a future possible shortage will always produce a price increase in advance of the shortage hitting the supply chain.

Of course in a free market people can charge what they like. *If* there was to be additional profit taking somewhere in the supply chain on the back of an anticipated future rise in cost (notwithstanding Darc19's post above), that's perfectly legal, but it's also perfectly reasonable for the consumer to raise an eyebrow.

Darc19

Did anyone experience the Armageddon of the 6c to 8c rises in fuel prices suggested by the indo?

Two local stations to me reduced their prices on Friday.

#neverbelievetheindo

punisher5112

Darc19 wrote: »

Did anyone experience the Armageddon of the 6c to 8c rises in fuel prices suggested by the indo?

Two local stations to me reduced their prices on Friday.

#neverbelievetheindo

I've seen 2 to 4 cent increase.

I see the organisation over pricing is recommending lowering the price of fuel in October.

Darc19

Where's the news headline today?

Brent oil prices have dropped to a two year low today of $57 and 30% below the price this time last year.

Now the sensible bit - it's only about $5 below the so-called spike that caused the screaming headline, so don't expect huge reductions at the pumps, but 2-3c should come off.

Good news does not suit the media.

Cee-Jay-Cee

A few places have dropped their prices a cent or two already