Oil price drop, how long till petrol drops?

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AdStreet8083@reddit

When prices rise, they do so by large amounts overnight.

When prices come down, they do so gradually over days/weeks.

The rich get richer.

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ZekkPacus@reddit

Up like a rocket, down like a feather.

The petrol companies will use whatever's higher out of what they paid or what it will cost them to replace it.

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Over the last few weeks I've been topping up at the cheapest station I could find as frequently as possible, generally maxing out at about 150p/litre, on the basis that when fuel is trending upwards the cheapest price you're going to get for the foreseeable future is right now.

If fuel is trending downwards now, I'm going to make the full tank I have now last as long as possible. Unless I'm in danger of running out, I'm holding out until I see a significant saving somewhere.

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DucksPlayFootball@reddit

So you’re the idiot that’s panic buying

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draenog_@reddit

??

I have a full tank. I use some fuel going to and from work and around to the shops. I top up when I'm next passing a cheap fuel station. That's not panic buying.

I'm using the same amount of fuel total. I'm not filling up jerry cans and stockpiling them. I'm just topping up little and often, rather than running it down and then having to fill up a whole tank again when the price has jumped up further.

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I_ALWAYS_UPVOTE_CATS@reddit

That is exactly panic buying. The total amount is the same, yes, but you are buying fuel more frequently than usual, because you are panicking that the next time you pass a petrol station, the price will have increased. If everyone behaves this way, that's how we end up with queues at petrol stations and pumps running dry. And for what? Saving barely more than a pound?

People like you think they're being super smart, when actually it's hive-mind nonsense.

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draenog_@reddit

If everyone behaves this way, that's how we end up with queues at petrol stations and pumps running dry.

That would only be true if I was somehow using more fuel over a given time period by filling up more frequently.

My tank is the same size. I'm driving less, if anything. I'm not using any more fuel than I was before.

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I_ALWAYS_UPVOTE_CATS@reddit

By yourself, no, but everybody targeting cheaper filling stations to top up leads to more people on those forecourts at any one time i.e. queues, and those filling stations run out, causing problems for people who are genuinely running low or for whom that happens to be their local station.

It doesn't surprise me, however, that the involvement of people other than yourself had not crossed your mind.

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draenog_@reddit

You're making up a person in your head to get mad at.

I check fuel prices before I fill up, and then I go to the cheapest local fuel station. That varies, depending on which has had a delivery recently, on whether any of the supermarkets are using fuel as a loss-leader to get people in the door, and sometimes when the supermarkets are close in price to the cheapest the additional factor of reward points swings my decision in their favour.

I don't queue for fuel, aside from sometimes waiting behind the person already using the pump I want because I can't be arsed to stretch the hose over my car to fill up on the opposite side. Perhaps I don't live in as busy an area as you, or I don't fill up at peak times.

People elsewhere in the thread are saying that fuel prices won't come down any time soon because fuel is an essential and so consumers aren't price sensitive and don't encourage competition between fuel companies.

Choosing the cheapest fuel station in your area, even if it's only by a few pennies, is the only mechanism we have to slow down price increases and speed up price decreases.

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notouttolunch@reddit

It's just yet another example of why the people should never be allowed to run things! These people are total idiots. Reddit is full of them, this sub is full of them! Panic buying is because you have the capacity to buy something and see it at a good price?

It's easy to see why people do things like panic buying when they're this stupid!

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draenog_@reddit

In fairness, they'd have a point if this was a short, sharp shock of disruption and everyone was rushing to the pumps at the exact same time.

But it's been going on for over a month now (and the disruption is going to continue for even longer while we wait for new tankers to set off and travel all the way here!).

Guys, I assure you that by this point people have been driving different distances, using fuel at different rates, and are topping up asynchronously. The frequency they're doing so isn't causing spikes and troughs in demand.

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notouttolunch@reddit

Also, I haven't had any difficulty getting fuel! I haven't seen any fuel stations that have run out. And if they have run out it's only been for a couple of hours or something!

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draenog_@reddit

I have seen places run out of diesel and a few motorway service stations that have run out at HGV diesel pumps, but I think that's mostly down to so many people filling up work vehicles and people actually panic buying that and stockpiling it using funds from their business.

I've also seen some pumps run out of the higher purity petrol. Not sure if they're just getting less of it in to start with, or what.

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notouttolunch@reddit

This doesn't describe panic buying at all. It describes being sensible with fuel.

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DucksPlayFootball@reddit

This literally describes panic buying.

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notouttolunch@reddit

I work this way all the time. Nothing panicky about it. It's just buying cheap fuel when you have access to it. I haven't even been to the filling station in two weeks.

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AHat29@reddit

Are you going out of your way to fill up? Ie above half a tank, or just finding the cheapest fuel when you need to fill up?

If you're buying fuel more frequently than you were in February, you're panic buying.

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notouttolunch@reddit

I've already said what I'm doing. I see fuel at a sensible price and choose to take advantage of it. I don't go out specifically to fill my car with fuel ever. That's a waste of fuel!

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draenog_@reddit

Let's take an obvious example of panic buying — those idiots buying trolleys full of loo roll during the pandemic.

Let's say a normal person has space in their bathroom for a nine-pack of loo rolls and normally uses eight of them before thinking "crap, I need to buy more loo roll when I'm next at the shops".

Panic buying is going to the shops and grabbing like three nine-packs for no reason because "you'll use them eventually", and then noticing that weirdly enough, the toilet roll shelves are looking a little empty.... and so intermittently picking up new nine packs every so often when they're in stock even though you've only actually got through about 4-5 rolls from your first pack.

What I'm describing is buying your normal nine pack, using a roll or two, and then buying replacements for the rolls you've used rather than waiting until you run low to buy a whole new nine pack.

(The analogy falls apart a little here because individual rolls are more expensive than multipacks, but assume that you can get single rolls for the same price as a roll within a multipack, and that there's now an issue with the toilet paper supply chain rather than scarcity being driven purely by consumer behaviour at the supermarket)

What that does is average out the price of those new rolls over time, while ultimately consuming the same amount of toilet paper at the same rate.

That's not panic buying.

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MissionLet7301@reddit

Buying fuel when you otherwise wouldn't is panic buying. No two ways around it.

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notouttolunch@reddit

Keeping your tank filled because you see cheap fuel is not panic buying. It's taking advantage of an opportunity. How big do you think my fuel tank is? I'll barely do a return trip to Bristol before my tank is empty.

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MissionLet7301@reddit

Okay lets put it this way, what do you think panic buying looks like?

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notouttolunch@reddit

Something that is not the above.

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MorningToast@reddit

Ok. Now, everyone in your town does the same thing. Everyone fills up to the max to "take advantage". Yes, that's panic buying and suddenly a huge issue.

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notouttolunch@reddit

As already discussed, this is not panic buying.

It seems like you're the sort of person who would panic by because you're not able to work out what panic buying is.

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TriggersShip@reddit

What seems rational behaviour at an individual level or to an individual becomes irrational when multiplied upward to a group level.

What you’re doing is where individual rational behaviour tips into irrational behaviour. As an individual it’s perfectly rational but as everyone does it it becomes irrational. I’ve done it so I’m not calling you out for it. I’m just pointing out why you see it as rational and others don’t. You’re both right(ish).

Also wife works in fuel supply. One of the key factors at present driving the price up is people behaving the way you are. I’m not saying if you stopped the price would stabilise but you are contributing to it.

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notouttolunch@reddit

It's not irrational. I've been doing it for nearly 30 years. It's very rational and based on sound principles.

The price of fuel even at normal times (I'm not sure why fuel is so expensive at the moment anyway) can vary by as much as 8p a litre. Why not take the saving if you're passing a cheap filling station?

Hopefully your wife will pick up her trade eventually. She could do well if she develops skills and appreciation for the industry.

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camcamio@reddit

Man just get a bike

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draenog_@reddit

I already have one, and I do use it to save on fuel for shorter journeys.

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Mocha-mootmoot@reddit

I wonder if this is because they sell the price of fuel based on how much they spent for that tanker then once those tankers have been used the price drops based on how much they spent for the next tankers fuel.

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ReflexArch@reddit

We haven't even hit the gap in ships reaching us yet. It's around the end of this week that the missing ships will be noticed. If all is open again the 4 week gap till new ships arrive in Europe is amount to start.

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Vertigo_uk123@reddit

Judging by trumps statement it will be at least 2 weeks until the straight is open. However Iran media is saying they haven’t agreed to anything trump has said so this will drag on months. Iran won’t open it until trump agrees to a 10 point plan including things like giving Iran total control of the straight which will never happen.

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PressureChemical7237@reddit

Yep and it will never return to the prior price. “The world is a business Mr. Beale and it has been since man crawled out of the slime”.

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Remarkable-Cod8130@reddit

This thing ain’t over yet

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MikhailCompo@reddit

Agree. Oil tankers travel slower than a bicycle.

Let's see how many they get through the straits in 2 weeks UK bound.

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Tammer_Stern@reddit

Also, a huge amount of oil and gas infrastructure has been destroyed. This will take months or years to rebuild. This will keep prices higher than previously.

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Glittering_Vast938@reddit

Plus the extra toll payments to Iran will make prices higher going forwards…

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evthrowawayverysad@reddit

Yep. Used EV prices are the lowest they will likely ever be. Now is the time.

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Swimming_Crow_9853@reddit

Why do you say this? There are more EVs being bought every year (even if the targets aren't being met), so there is also more supply of used EVs every year. So with more supply of used EVs, their prices will come down.

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evthrowawayverysad@reddit

Because there will be a much larger share of car buyers switching to EVs as the financial incentive is higher, and disinformation surrounding them wears off. Already underway in Australia, and possibly happening in the UK as well.

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Swimming_Crow_9853@reddit

Sorry I'm not following. You're saying that as people understand that EVs are worth it they will switch to buying second hand EVs. Shouldn't this mean that they don't depreciate as much?

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evthrowawayverysad@reddit

That's correct. Currently, EVs depreciate heavily as there's very little perceived appeal to used buyers. Now, they become more appealing as oil prices will likely stay elevated, and also as the available range of used EVs includes more and more recent models with better range, faster charging etc.

This results in the 'funnel' of EV buyers getting wider at the bottom (used private buyers) when it used to only be wide at the top (fleet business buyers).

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Swimming_Crow_9853@reddit

OK, but also important to note that most EVs are leased for about four years. These are now coming onto the second-hand market in increasing numbers every year so the overall supply of second-hand EVs is increasing, which will help.

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evthrowawayverysad@reddit

I'm well aware, that's what I was refering too with top of the funnel fleet buyers buyers. But something else you should consider is that a lot of those people who least those EVs did so because they may have been concerned about full ownership due to unknowns like battery degradation and future fuel prices.

Now, with battery degradation a non-issue, and fuel prices high, many who were leasing may well switch to buying used as residual values starts to stabilise.

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Swimming_Crow_9853@reddit

That's a very good point.

Also, the two reasons why I chose to lease, which weren't to do with fuel prices or battery degredation concerns.

- I was "forced into it" as there were very few available second-hand a couple of years ago. I would never normally lease. I wanted an EV and this was the only way to do it.

- Those cars that were available and affordable for me had a very poor range. I could only get a Leaf or Zoe.

Next time I will buy second-hand, as I believe that's the most sensible option.

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evthrowawayverysad@reddit

Yea, I'm in the same boat.

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Bish922@reddit

You saw that youtube video too eh?

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Lawdie123@reddit

But that argument could also imply the prices shouldn't have increases for 2 weeks at the start of this mess as they would have brought the oil on the boat at a low price.

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bramleyapple1@reddit

Do we get much of our supply via the strait anyway?

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Fresh_Relation_7682@reddit

It affects the market price and the UK isn’t extracting its own oil

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Fresh_Relation_7682@reddit

We should have seriously diverged from fossil fuels decades ago (when Ed was last a Government Minister there was some momentum)

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Important_Ruin@reddit

Even if we were it would be sold on open market anyways not direct to the UK, as private companies would be extracting it and they sell to whoever buys it at highest/market price.

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alfa_omega@reddit

Shout it louder for those in the back

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BlondBitch91@reddit

We could, but Ed Miliband keeps getting in the way.

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Bernardozila@reddit

I think the Iran crisis has very much proved him right.

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thatsacrackeryouknow@reddit

Very little is UK bound. As the UK still has scantions on Iranian Oil

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Bernardozila@reddit

Gulf state oil & gas also goes through the strait, which has had the biggest impact on global prices. We get most of our oil from Norway and the US.

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ElbowDroppedLasagne@reddit

I saw that video too !

We are all doomed

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NoCold3997@reddit

Well just before the ceasefire there was 500 oil tankers stuck in the strait now they'll all be making there way through ( about 15 mph) so if the strait is open for at least 2 weeks looks like everyone's summer holliday is saved 😁😁

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Fairwolf@reddit

Don't think for a second this conflict is over. They're apparently still firing bombs at each other, I don't expect this ceasefire to last long at all.

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Glittering_Vast938@reddit

Really hope heating oil comes down - I’m eeking out the little I have in my tank. Thankfully getting solar and battery soon though which will help.

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AppropriateDig9401@reddit

They will rinse the profit for as long as possible with their excuse. Funny thing is over 60% of the pump price is tax and duty, we also get barely any of our oil from that region, lmao.

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hodgey66@reddit

there was an interesting video that explained the oil tankers speed being that of a road bike. Therefore, prices will stay high whilst supply is low and demand is high.

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arabidopsis@reddit

When Sunak cut the duty by 5p, they kept it the same until.the gov stepped in.

Fuel prices will stay high as long as they can they dgaf about customers

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theartfuldodger08@reddit

Sunak has massive amount of shares in the likes of shell, conflict of interest. He's rubbing his hands......

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Acceptable-Split6348@reddit

[citation needed]

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theartfuldodger08@reddit

All his assets are hidden in a blind trust, created to hide any conflicts of interest........... allegedly.

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Acceptable-Split6348@reddit

[citation needed]

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PolarLocalCallingSvc@reddit

He has massive amounts of shares in practically everything TBF.

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SadSeiko@reddit

he also believes he pays a fair tax rate, roughly the lower rate of tax even though he earnt 2 million https://www.bbc.co.uk/news/uk-politics-68253857

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PolarLocalCallingSvc@reddit

Oh I'm not defending the guy.

I just mean to say that there's not a great argument against him on the basis he has interests in oil/gas companies, as he basically has interests in every industry imaginable.

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Swimming_Crow_9853@reddit

I don't think fuel prices are actually high.

In 2000, a litre of unleaded was 78.5 pence, which is 168 pence in today's prices.

Now it is about 158 pence a litre, so even with this shock it is relatively cheaper to fill up than in 2000.

Plus cars are more fuel efficient than they were.

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Beer-Milkshakes@reddit

I remember that. "The pumps are keeping the 5p, this is unfair."

Its the market. Keep talking and you'll accidently explain that they're actively encouraged to keep that 5p if it doesn't risk their customer count.

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arabidopsis@reddit

I mean to them it's 5p more profit.

Tax cuts like that don't work without government enforcement. Same happened with VAT, even when it's cut the companies don't really change the price.

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Beer-Milkshakes@reddit

Our market sort of relies on prices always going up. Its probably more bizarre overall to expect some prices to come down but if other prices came down it would be a disaster.

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katspike@reddit

Iran will use oil tanker tolls etc. to fund the re-building after 'obliteration' by Israel and US. Prices will be volatile for a long time.

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PenaltySeparate1699@reddit

Long way from over.

There are sites that cannot get stock at present.

The price is baked in for months

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worldworn@reddit

There is always a lag, because oil companies have to buy a certain amount in bulk at the high prices.
When the price of oil goes back down, they still have to use up the expensive oil that they have already paid for.

This needs transportation, refining etc. so we keep paying the higher prices for longer.

Oil companies are scumbags, but there is some logic to it.

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SmallUK@reddit

The petrol companies will have bought millions of barrels of fuel at the higher price so will take some time to sell through that first. But I get your point, we won't see the savings as soon as we should

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Dodomando@reddit

Petrol companies are buying now for 1 week or so time. This is always the justification they give for large spikes in fuel, so they have already paid for the fuel and are buying right now for 1 weeks time and so fuel price now should match the current price of what they buy today

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YodasGoldfish@reddit

We were told the reason the prices went up so fast was because they reflected the cost of replacing the fuel at the now higher price. If that was true then the same would be true in reverse.

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cdoc365@reddit

Didn't happen when the oil price went up, petrol prices went up immediately. It should work both ways

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MissionLet7301@reddit

"We have to charge that much, it's how much it'll cost us to replace it" to "We have to charge that much, it's how much we bought it for" with a dose of "We recorded record profits this quarter", we've seen it a hundred times and we'll se it again.

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Fresh_Relation_7682@reddit

Instability and uncertainty send prices up. Until they have a glut of fuel the prices aren’t coming back down quickly

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mumwifealcoholic@reddit

Well it doesn't for very many reasons.

Plan accordingly.

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these_metal_hands@reddit

It should but it doesn't

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SmallUK@reddit

I agree!

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ExcitingColt552@reddit

But it doesn't. Welcome to the real world

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Worldly_Let6134@reddit

That would be fine if the inverse was also true. However, the moment there's an oil price rise, the price at the pumps shoots up - despite the fact that as you say, the company has loads of oil they had bought at the lower price......

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Sparko_Marco@reddit

Usually they say when the price of oil goes down the price of petrol doesn't go down as quick because they had to buy their current supply at the higher cost. However, when the oil price went up recently they said they had to put the petrol prices up straight away because the cost of their next supply would be higher. Its all bullshit to maximise their profits.

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Broccoli--Enthusiast@reddit

6-12 months

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No_Excuse_9023@reddit

Oh it’ll be months. And months of excuses and “reasons” why it can’t go back down at the rate they put it up, none of which has anything to do with ripping people off though

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Johnsie408@reddit

They don't they only go up.

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Debtcollector1408@reddit

Haha he thinks petrols coming down.

Bless.

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irv81@reddit

When the price at the pump rises rapidly, they rarely go back down to what they were regardless of the price of oil

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Acceptable-Split6348@reddit

What a ridiculous thing to say. Petrol prices are constantly rising and falling. Have you looked at a graph of prices?

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AveragelyBrilliant@reddit

Nothing has left the petrol and oil terminals for nearly a month. Europe and the UK are getting their shortages hitting next week because of the time it takes to transport the stuff and the fact that most of the ships arriving now, left before the “war” started.

It ain’t over yet. Greed is the cornerstone of our world and corporations will do anything to exploit a situation.

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TheYorkshireGripper@reddit

They could charge £10 a litre and people would still buy it because unfortunately people need to travel.

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JoJoeyJoJo@reddit

The price won’t come down for years - it’s not the uncertainty that’s the issue, it’s that 80% of Middle Eastern refining capacity has been destroyed or degraded - we’re heading for far worse than the 70s oil crisis regardless.

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coomzee@reddit

Feather and rocket pricing

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DrHenryWu@reddit

Got a feeling it will go back up again. This is a very shaky ceasefire

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triguy96@reddit

Nope, by a bike or an e-bike and tell your local councillors and MPs to build some more bike lanes. We need to reduce our reliance on global oil prices by reducing our demand for the oil.

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South_Leek_5730@reddit

Did you know you can ride your bike faster than an oil tanker (12-17mph)?

What this means is there is a steady stream of tankers delivering oil to the world and when you add a choke point like the straight it takes literally weeks before you actually feel it. Places closer like the Philippines obviously felt it quicker and came close to running out.

Then you have your reserves because you know it would be a bit silly to be reliant just on ships.

Now with all these fun facts in mind the price should not have gone up yet but it's capitalism supply and demand a.k.a. profiteering and screwing everyone over.

I predict a minimum of 2 weeks before it gets back to normal but if they don't reach agreement it won't come down at all. Any supermarket prices that have gone up will take a lot longer to come back down and if they ever do it won't be to the price before.

In all this it's worth sparing a thought for all the companies making obscene profits and the wealthy people in the know making millions from stocks, shares and the price of oil.

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Pale_Slide_3463@reddit

Dropped? Petrol went up 15p

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srogijogi@reddit

My crystal ball is saying 8d 7hrs. Please have in mind that this is cheap crystal ball from Temu (shop like billionaire (r) ) so it may be biased and/or not accurate.

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korg64@reddit

That's the best part.

They don't.

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these_metal_hands@reddit

lol It won't drop until there is sustained, reliable and safe shipping in and out of the strait.

A two week ceasefire isn't enough.

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EarthPhysical2633@reddit

Exactly, no sane shipping company is going to send more tankers into the Gulf with the possibility that in 2 weeks they can't get out again.

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Fine_Cress_649@reddit

Exactly. I don't think the full increase in the price of oil has even fed through yet.

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Fusilero@reddit

The last tankers from before the trips are to reach their destinations from the gulf got there in early April; most of what we've seen price wise has been pricing in future disruption rather than actual shortage.

The actual shortage is starting now as oil and gas tankers change their destinations based on international competition.

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Legit_Vampire@reddit

The other day I put petrol in my car price was £159 per litre. An hour later price was £1.61.9 per litre. There had been no delivery of fuel so I think they put the prices up as they want to

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g00gleb00gle@reddit

Price based on futures or buy price at source. But never seems to happen when prices drop

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Exita@reddit

Largely because you need to be certain that prices won’t just rise again.

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sjw_7@reddit

The reverse is never true though is it? They never think 'this is only a temporary rise we will wait to see how it pans out'. Nope they increase as soon as there is a spike and keep it there until competition forces them to drop again.

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BuildingArmor@reddit

Yeah, likely because they don't want to take that gamble.

What's the upside, that they maybe get more customers briefly during a time when wholesale are up and they're charging less? Then lose them again when the gamble pays off but that's when everyone else can settle their prices too.

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The_Blip@reddit

That's basically free market economics 101.

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sjw_7@reddit

Yes but for some reason so many people flat refuse to acknowledge that. Instead say that the companies have no choice in putting prices at the pump up immediately but go 'ooh look squirrel' as soon as they are asked why they don't drop as quickly as the rise.

They aren't a public service. They are a business out to make money. They are going to take an opportunity like this to make more because they can. Lets stop making excuses for them and pretend its not.

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Gauntlets28@reddit

Well the price would go up if there was no delivery, that's how it works? Scarcity increases price...

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box-o-locks@reddit

£159 per litre? You really should have tried somewhere else.

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Small-External4419@reddit

OP’s car runs on printer ink

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superwisk@reddit

Surprised it worked to get them to the petrol station tbh.

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RoboticCurrents@reddit

They should've asked me I'd sell them for £150 a litre

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sockeyejo@reddit

I'd have gone for £100

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sennalvera@reddit

Oh stop it. Reddit is ecnomically illiterate at the best of times but posts like this are a vacuum of ignorance. Five minutes with ChatGPT will educate you on how oil markets are involved and complicated, how the war has caused impacts that don't fix overnight, that there are actually real reasons why prices go up fast and come down slowly.

But no one cares about that. They just want to self-righteously wank over 'profiteering' and the evils of capitalism.

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Gauntlets28@reddit

Somebody get Jeremy Vine...

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Ok-Influence-4290@reddit

Two weeks isn’t enough time to get anything meaning through the strait. You’ve also got to factor in that they are likely not just going to let it be a ‘free for all’, it will be limited numbers.

Crushing the global energy market is their ace card. If they let everything through and prices come down they set themselves up to be bombed again for another six weeks.

The

They have to keep their leveraged

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Gauntlets28@reddit

There's no guarantee the ceasefire will even last two weeks.

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Jamie_Tomo@reddit

I look forward to prices plummeting 😂 It’ll be a good few months.

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crzylgs@reddit

Probably maxed out yesterday because that is when I filled my car up. You're welcome everyone :)

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MiddleAgeCool@reddit

Fuel is the talking point from this conflict because people see the price at the pump but the bigger problem is food production.

Iran controls around 30% of the global fertiliser production. The closure of the strait has not only increased imported fertiliser costs by 40% this year, it's meant that crops have been planted with little to no imported fertilisers. This is a delayed impact because the results will be much lower yields and increased pricing later in the year. Did you notice the jump in the cost of olive oil a couple of years ago. prices pretty much trebled, and now it's started to come down again four years after it stablised; that was yield related. Now imagine that kind of spike across every one of the harvests used to produce food for the UK.

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Gauntlets28@reddit

Realistically, there's no guarantee that it will.

A lot of major oil refineries and oil fields have been severely damaged across the Middle East.
Stockpiles have dwindled, and governments around the world will most likely want to build those up again, especially given:
This is a two-week ceasefire that may not even last that long, given how double-dealing the participants in this war are known to be. Plus:
Oil will most likely go to the people willing to pay the most. My estimates for who that is? Airlines, petrochemicals, the aforementioned government. Probably not petrol stations.

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Ok_Young1709@reddit

We should just stop buying. It would take a matter of days at most for them to cave in and drop prices. Stop buying, refuse to go anywhere, we can't all be fired from our jobs. This is what other countries do, they strike. We roll over and let it happen.

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Several_Cold_7160@reddit

Sorry pal I think this is quite naive

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Swimming_Crow_9853@reddit

I recommend switching to an EV.

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Fresh_Relation_7682@reddit

It is the way but change is hard

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Plane-Jello-3687@reddit

France enters the chat

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Conscious-Ball8373@reddit

Just like we can all stop paying for our electricity and what can they do, right?

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terryjuicelawson@reddit

Too many people need to drive places, they can ride out people not buying petrol for a few days. I think during Covid it got down to around £1 a litre so that is about as good as you can expect. You know petrol is generally pricier on the continent anyway, right?

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Right_Yard_5173@reddit

Ok you go first.

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CasioJay88@reddit

Okay you start I'll follow you

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Glen1888@reddit

Damage has been done to infrastructure prices won’t go back to what they where oil still high just not as high as it was

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Dizzy-Okra-4816@reddit

I don’t know, but if this doesn’t solidify the economic argument for renewables then I don’t know what will.

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Swimming_Crow_9853@reddit

I don't think fuel prices are actually high.

In 2000, a litre of unleaded was 78.5 pence, which is 168 pence in today's prices.

Now it is about 158 pence a litre, so even with this shock it is relatively cheaper to fill up than in 2000.

Plus cars are more fuel efficient than they were.

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dh1805@reddit

I don’t see it going below 1.40 again, but it will be celebrated as a drop

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Swimming_Crow_9853@reddit

£1.40 is really cheap, so shouldn't be the benchmark.

This is like when people say that interest rates are high and should be back to 0.5%. They forget that actually 4% or so should be the norm.

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NorthernGooner77@reddit

The retailers will do their up most to keep the prices as high as they can for as long as they can.

Then they will make some BS excuse about how they are able to lower the prices and how it is great for the consumer etc....

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PM_ME_BEEF_CURTAINS@reddit

The retailers will do their up most

Utmost

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TTNNBB2023@reddit

Kinda makes sense though, like a moo point doesn't matter because is a cow's opinion.

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mh1191@reddit

Squids are damp too

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Relevant-Ad-9270@reddit

And feet are moveable

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slagsmal@reddit

Bone apple teeth!

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pooinyourear@reddit

Thanks for clarifying this. I had absolutely no idea what the original commenter meant and was utterly confused until you bravely stepped in to correct them.

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NorthernGooner77@reddit

Yes, I know. It is early.

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OkPea5819@reddit

It's a temporary conditional ceasefire between a radical, unpredictable authoritarian dictator and the leader of Iran. I wouldn't be too confident in petrol prices going back to where they were.

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gpowerf@reddit

It dropped locally for me already.

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Prefect_99@reddit

Never.

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verminV@reddit

Probably never.

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Secure-Vanilla4528@reddit

Time for people to start cycling, hit the companies where it hurts the most, if you're not buying petrol they're not making money off of it.

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Secure-Vanilla4528@reddit

This is the calm before the storm not the end

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PaulaDeen21@reddit

The barrel price will be back up before any reductions hit the pump.

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Glittering_Box4815@reddit

WON'T SOMEBODY PLEASE THNK OF THE SHAREHOLDERS!!!!

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FrostyImplement9565@reddit

I mean water is still wet, and I'm still a man. So until at least one of those changes those prices are never coming down.

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Technical_Version936@reddit

You can change gender with a word, lower my damn petrol prices make the change!

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samsaBEAR@reddit

Bloody easier to change genders in this country than it is to find cheap petrol, fackin hell (gammon voice)

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Neat-Possibility6504@reddit

Well there's nothing we can do about the water, but the man thing we can fix, so for the good of the economy....

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VitaExquisita@reddit

It wont

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clbbcrg@reddit

Up like a rocket down like feather I think the saying goes

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t-costello@reddit

Hopefully not soon, I filled up yesterday assuming it was going to keep rising and I don't want to be proven wrong

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Sea-Payment-8989@reddit

Have you seen a feather attached to a parachute landing - that's how long it will take.

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RudeHelicopter4662@reddit

They might reduce by a token amount but prices don’t go down. We’ve shown how much we’re willing to tolerate.

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ImpressiveGrocery959@reddit

December 17th

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IhaveaDoberman@reddit

Weeks if not months.

When the oil prices go up they "don't have any reserves" and have to cover the increased cost of buying. When the prices go down, they need to "recoup the cost" of the reserves they currently have.

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Wise_Focus_9865@reddit

The price goes down when sales slow down. As long as any business has a steady demand for their product at price X, there is no force motivating them to lower that price.

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ci_newman@reddit

Baseline oil prices weren't the problem - the refineries have been blown up. Even if we get billions of extra barrels of oil, there is limited capacity to process it.

Basically, no. Prices aren't coming down for months / years until refineries are rebuilt / repaired.

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Redsetter@reddit

Let’s hope all those bombs didn’t hit any refineries or other infrastructure that takes years to rebuild… oh wait.

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Exita@reddit

It’ll start dropping once the tanker fleet are actually properly moving again and there is supply in the system. That’s going to take a month or so, assuming the ceasefire holds.

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Greedy-Mechanic-4932@reddit

Even with a ceasefire, I reckon prices are going to be this high for at least five/six months.

Our locals are running at 190.9ppl right now, !remindme 5 months

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beefygravy@reddit

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ReynoldsHouseOfShred@reddit

That's the neat part. It won't.

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Home_Assistantt@reddit

You’re mad if you think even a 1 or 2 day drop will affect the price of oil

Until the flow through the SoH are back to normal without any conflict impact, this price is going nowhere fast.

Infrastructure damage alone is going to keep things high for some time.

It’s just how it’s gonna be for a while

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UniquePotato@reddit

It doesn’t work like that, nor is the conflict over

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MyDadsGlassesCase@reddit

We all know how this works:

We have to put the petrol prices up now because we buy it in advance We can't put the petrol prices back down now because we've already paid for that petrol

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Opposite_Basis_3532@reddit

Just watched an analysis on the war and they've said the petrol and oil prices won't drop back to £60-70 a barrel till Christmas!

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Lo_jak@reddit

LMAO its been up and down like crazy over the last few weeks, the price per barrel is currently held together with hopes and dreams...... I would be very surprised if this "2 week ceasefire" last more than 2 days.

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stevecrox0914@reddit

The oil price is on future barrell shipments and the tankers from before the war haven't yet arrived, so the current rise was profiteering.

With previous oil price rises the price at the petrol station rises quickly but has "stickyness", so it can take weeks to months to fall.

Honestly since the petrol consortitum refused to meet with the government because they called out then profiteering the government should just windfall tax this block of profits. I bet they will reduce the price quickly with that threat.

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QueefInMyKisser@reddit

Learn about the mechanisms behind the rocket and feathers phenomenon of asymmetric price transmission by reading the excellent book “Thinking Fast and Slow”. Most people on this thread will simply blame greedy companies but it’s actually a failing of human psychology that’s the underlying root cause.

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Purp1eMagpie@reddit

About 3-5 business...years

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idris_elbows@reddit

I'd love to go electric so I never have to give a penny to those price hiking cuntwaffles again

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CodeToManagement@reddit

I used to sell bottled gas

When the price of oil went up the price of a gas went up and they would say it’s because the price of crude is high

When the price of oil comes down they would say “yes but there’s other things to consider and we aren’t selling oil here”

It’s just a way for businesses to profit

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