Tuesday, May 24, 2011
The recent fall in oil prices shows us two worrying things. Firstly oil future speculators have much more effect than we realise. Data in the last week that the Chinese economy isn't recovering as strongly as previously thought has caused a rash of selling which has brought down crude prices. City traders had been betting on increased demand and panicked when they heard that Chinese demand might not be as strong as they'd thought. All of which means that the recent frightening rises in oil prices weren't actually due to the fundamentals of supply and demand, but the mischevious antics of a few blokes in red braces in London and New York. That's why we need a mechanism that protects our economy from the volatility that oil speculation causes. A transparent stabliser that brings down fuel duty when the city traders talk the market up.Which they'll continue to do, as long as they can.
 
The second concern is that we're not seeing falls in wholesale prices translated to the forecourts quickly enough. There's a normal 10 to 14 day delay because when garages have bought at the higher price, they can't then reduce prices immediately to reflect the lower oil prices because they'd lose money. Fair enough. But there's clear evidence that forecourt reductions aren't happening quickly enough. As soon as the stuff goes up, forecourt prices increase the next day, but not the other way round. A government investigation with (if necessary) legislation to force the market to honestly reflect wholesale prices changes is long overdue.
 

This Summer we may see slightly lower petrol and diesel prices - for a bit - but it won't last. The same daft market dynamics that frightened us all silly this year will inevitably kick in again. This government needs to start managing fuel prices and developing a long term protectionist strategy to shield the economy from the damage of oil speculation. Until Westminster really gets to grips with the oil market we'll always have these debilitating swings in prices. For a 21st century, first world economy, the current system sucks.




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[ posted by Jim King, 24.05.11 18:22 ]

I was speaking to a friend today, he ran a shell garage for 12 years and left 2 months ago, due to a new job.

i put some questions to him and would like to point out I am not siding with him, i am simply convaying the message givern. Make of it what you will and feel free to shoot the messenger, but i would rather you did not.


Why when oil prices rise do fuel prices rise next day, but when they drop it takes at least 2 weeks to see a reduction?
- The garage has to buy fuel in advance, being a franchise you have no choise in supplier but you still have to buy it. You also have to pay for it a week after delivery but it can take 3 weeks to empty the tanks to refill levels at times, so if we buy it at a price we cant sell it cheaper than we bought it or we would not be open long.

So why does it rise so quick when oil prices rise, if its been bought in advance?
- Like I said we have to pay for it 7 days (to the hour) after delivery, so we tend to up the price in order for the garage to have the cash flow to pay for the next order, the cash flow increases, but decreases dramatically a week after the next order is made.

Why did you increase prices the day fuel duty dropped by 1p, by 1p in the morning?
- This cut was not explained and we buy our fuel tax paid, so if we had not we would have taken a fall.

How much profit do you make from selling fuel?
- Not a lot, being a franchise we make very little, shell get the bulk, we really are more dependant on people buying from the shop.

why did the price rise over night when vat was increased?
I admit that was sneaky, but again we had the option there and its hard times for us too. As I say you think you are paying me for all this fuel, but your not, Im no sports car driver, you are paying the government in tax and shell. Really to us the fuel is just an excuse to get people into our shop. but we had a chance to make a little for once and as a business thats what we did.

I must say i dont like that answer mate, but at least your honest.
- take it as you find it mate, its business, nothing else. Glad to be out of it to be honest, and I can see a few garages closing because of the price of fuel, it means people have nothing left to spend in our shops.

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[ posted by mark, 24.05.11 18:51 ]

it doesnt matter how you put it,all company garages are robbing swines

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[ posted by susann scott, 25.05.11 11:39 ]

I have downloaded forms and got a few more signatures to add to the total but am concerned that it has remained to 155000 for at least a week now! or longer. If this is updated daily there is something going wrong with the campaigm isnt there? So how can we get more fire in the belly of the public, all of who are affected by this?
Please someone explain why that figure hasnd moved

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[ posted by MrKleenezeMan, 02.06.11 21:32 ]

the reason why you'll never get the British Public fired up is because of the general apathy towards everything in this country.
There are many issues which we should be getting very angry about and making the politicians do as they are TOLD by their masters (the public who they are supposed to serve) but there are so many people who are only interested in themselves, let someone else worry about the countrys' problems. All you can do is use it to your advantage. I know that Kleeneze is a fantastic opportunity, have a read of this www .moreleisuretime.co.uk and you'll see for yourself. However, the vast majority of people are far too lazy to take advantage of the opportunity, which is great because if everyone realised just how good an opportunity it was, then it wouldn't be such a fantastic opportunity.
Fuel will hit £2.00 a litre before the end of 2012, there's nothing you can do, just accept it and get on with life. Politicians are never going to do anything about it, they'll just vote themselves ever bigger travel expenses to cover the costs for themselves and hang the public, what do they matter?

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[ posted by jim King, 07.06.11 17:51 ]

MrKleenezeMan - The politicians do obey their masters. The problem is, although you think you are, you are not. No the real masters of this whole game are the EU commission. The politicians wont stand against them, why would they? they would need to get their noses out of the trough to do that.

Thats why the referendum we all want, and have been promised in one form or another by every major party, will never happen. Untill there is a concentrated effort to force an IN/OUT referendum on the EU, then all other campaigns must take a back seat.

For a lot of us its not lazyness, its powerlessness. "we cant do that its illegal under EU law" will always be the cry we get from westminster until the majority of the people push, and push hard for the referendum.
thinking of safety you chain your self to your boat whilst 10 miles into the ocean. Your boat sinks, you can try to swim the 10 miles to shore, chained to a 10 ton weight, but you may be better to make a great effort to break the chain before you start trying to swim

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[ posted by petrol price protester, 12.06.11 23:48 ]

I fully support the proposals outlined on this website. Is it possible to follow through the petition with a unanimous UK boycott of BP? It would be a huge statement of discontent, and indirectly put pressure on the Government to reconsider its fuel taxation policy.

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[ posted by Cedders, 21.06.11 10:12 ]

I think Quentin's right that any reduction won't last, but I think it *is* as much down to supply and demand as to commodity brokers in the City. We've reached a global peak in production (encouraging more deep-water drill and tar sands), and the only way to reduce the prices long-term is to reduce demand. So what we should be calling for is government investment in ways of doing that, perhaps through their "Localism" agenda.

Yes, oil prices have fallen to where they were in March, but at $112/barrel they're still 50% above the price this time last year. What do you make of the Office of Budget Responsibility's report on the fuel stabiliser idea? Higher oil prices mean the government gets less money overall (because for the past 10 years we've been a net oil importer), and in addition offsetting a £10/barrel rise would cost the country nearly £3.7bn a year, so that would mean cutting health and education and everything else even more. Besides, if the men in red braces know a price and demand is relatively assured then they can use that the force the price even higher, so it would basically just be a transfer of money from public services not to road users, but to commodity investors.

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[ posted by hole sandeep, 29.07.11 12:30 ]

i want imp for this diploma

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