Oil prices down 15% so surely the forecourts should reflect that too?

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terryjuicelawson@reddit

There is a long process between oil becoming petrol then getting to the forecourts so it isn't an instant process.

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spikewilliams2@reddit

Unless the price is increasing, then it's instant.

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terryjuicelawson@reddit

Not really, it crept up to its current level rather than leap the 30 odd pence extra it is now. It is still an unstable market and are buying petrol, not oil.

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Remote-Pool7787@reddit

That’s nonsense. I was paying 128 for petrol 5 weeks ago. There had been little to no price fluctuation for a year. It’s now 155

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Which considering there is a war in the middle east and vital infrastructure has been demolished, isn't a terrible increase at all. We just feel it more as we need litres and litres of the stuff to fill a tank. You can get as upset as you want but it is highly competetive by its very nature (prices all lit up on every forecourt, many directly next to each other!), there isn't a conspiracy involved. Plenty of mundane things fluctuate seasonally or when there are supply issues such as fruit and veg.

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Fuzzy_Cantaloupe6353@reddit

Well yeah cos they brought it weeks in advance

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Used-Fennel-7733@reddit

Then why did prices go up immediately not weeks down the line?

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Fuzzy_Cantaloupe6353@reddit

Purchase price went up so they can cover the next lot not that hard to figure out plus we had a rise coming from the previous price hike anyway just all hit at once

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Used-Fennel-7733@reddit

So you're saying the current prices should be covering the next purchases then right? If the prices come down, then the current prices should to cover those next lower costs

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Fuzzy_Cantaloupe6353@reddit

You're buying wholesale from the place that's already paid the big price so no.

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Used-Fennel-7733@reddit

No matter how you dress it up they're charging for the higher price twice and paying for it once.

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Fuzzy_Cantaloupe6353@reddit

No it's not 🙄

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SemtaCert@reddit

Because they need enough cashflow to be able to purchase the fuel at the new higher prices.

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Used-Fennel-7733@reddit

Great. So they're now only need the cash flow to be able to purchase at the lower level right?

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SemtaCert@reddit

So you believe that the situation is now stable and prices will remain stable and predictable?

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Shinjukin@reddit

That's future's price, the physical price of oil was still over $140 a barrel, so we'll see what it drops to over the next couple of days.

Now I understand that oil future's is a foreign concept to most so let me explain. The "oil price down 15%" is a contract for June and mainly synthetic, meaning it's a bet on what the oil price will be in June and is settled in cash without a single drop having to change hands. The reason the prices are cheaper in June is due to backwardation, you can google what that is if you like.

This is also not including the fact that Israel is still bombing the shit out of Lebanon and Iran is bombing the Gulf states and nothing new is getting through the Strait. When you factor in that there's a mutli-week lag between when a ship leaves Dubai and arrives in Japan for example then we could see prices continue to rise as the supply is still technically decreasing for several more weeks, even if full traffic is restored today.

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lunarpx@reddit

Well it depends how companies purchase oil, many buy ahead of time so it will take a while to feed through.

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Tankmass@reddit

Funny how the prices went up immediately when the war broke out, but somehow when a ceasefire is put in place ‘it will take a while for prices to come back down’.

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Delicious-Pop-7019@reddit

So weird, almost as if they are just making up bullshit prices as they go knowing that many people have no choice but to buy fuel.

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Good-Animal-6430@reddit

They will charge whatever they can get away with. At this point people are just getting angry with capitalism. Petrol is also competing with food, electricity bills and leisure activities for the pound in your pocket. You can curse the petrol companies. Your can also curse the heavy footed driver in the large engined sports car who is perfectly willing to pay high prices for lots of fuel just to have a bit of fun, and shows the companies that they can get away with that price.

The end game of all this is electric cars and people having solar panels to charges their own at home

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OkAdvisor6680@reddit

Prices didn't go up instantly, they've gradually increased over the last month

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iffyClyro@reddit

I understand that it’s frustrating and I understand your very simple logic however it doesn’t work that way.

The price increases are a reflection on risk, wholesale price and potential future scarcity.

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No_Cauliflower_6937@reddit

It was an immediate increase! Even though the fuel was brought months previously at a lower price. They want bring it down as they’ll use the excuse that the fuel now was purchased at the higher price

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tomelwoody@reddit

*bought

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Mav_Learns_CS@reddit

Just a small correction but the fuel being bought months ago isn’t a factor, what you pay is the cost of refilling the supply you used - hence why it’s instant

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spikewilliams2@reddit

Yet the prices went up before the expensive oil hit the refineries. Also the prices quoted on the news were futures prices, one on the BBC near the start was quoted as May prices. The stuff on the water was probably already bought at pre war prices.

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nathan0031@reddit

190p diesel

Mein gott

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spikewilliams2@reddit

1.98 on the motorway services I passed on Sunday. Luckily their sign cannot show a 2 in the £ digit.

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DrHenryWu@reddit

Seems like a shaky and temporary ceasefire. Anything could happen still

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Billy_Rizzle@reddit

Prices shoot up like a rocket, but fall like a feather.

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gardenfella@reddit

Asymmetric price transmission

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ActionBirbie@reddit

This is not a question and OP should feel bad.

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Alert_Mine7067@reddit

If we're lucky, they will fall slowly as usual, but I doubt they'll fall to what they were 6-8 weeks ago for a long time, even then it'll be dressed up as a bargain.

Although I think it's the calm before the storm and it won't be long until Hitler starts acting like an arsehole again, which will increase the price again.

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Mindless-Fish-4483@reddit

Just saw diesel at 195 😅

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MelkorTheCorruptor@reddit

Capitalism profiting off war

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Jealous-Honeydew-142@reddit

The prices never fall to reflect decreasing oil prices. It will trickle down in a few months time but they need record breaking profit first.

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AlwaysNorth8@reddit

There is no price cap on fuel - it's a free market. The sooner you realise that prices are not controlled by geo political events on the news and are based off supply/ demand at the pumps the sooner you will make peace with the issue. There's not some guy sitting in the HQ of BP and Shell saying look at the news, put the prices up Now!

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BigBastardChap@reddit

Don't forget, when there's an issue that leads to oil prices going up we see it immediately actioned on the forecourts.

But when the oil prices drop, they have to 'Sell off their higher priced Petrol/Diesel reserves first', and then the consumer will see the savings.

Weird that.

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