Taxi Driver Online

I note the price has now fallen below $48 per barrel.

So why the f*** are we still paying 90p per litre, when in January it was $48 dollars a barrel, and 79 - 80p a litre?

To$$er$

because we are stupid enough to sit around and do nothing. and the oil dealers are know that.

The $48 dollar oil is still in the ground in Iraq, or wherever, but they are quick to increase pump prices, and slow to reduce them, it is true to say.

I wonder how much we would be paying for fuel if it wasn't for the likes of Tesco and Asda.

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IDFIMH

It may have something to do with the structure of the market.

The oil market is very competive, with lots of buyers and sellers, so prices can move quickly in response to changes in other market conditions.

However, the market for local fuel retailing isn't so competitive, because there are normally only a small number of players (an oligopoly, where a small number of players can easily keep an eye on what the competition are doing, and act accordingly).

So if you've got two or three filling stations side by side then they know that if one drops its prices then the others will just follow, as they will lose lots of trade, so basically there's no point in dropping prices.

By the same token, they know if they put prices up then they will lose customers, so best to keep them where the same as other competitors.

The point is that they can easily see what the competition is doing price wise, and the customers can easily compare prices, so the prices can often become 'stuck'.

That's why when the competition authorities investigate allegations of price fixing by fuel retailers, they usually get a clean bill of health.

As Sussex alludes, the market is more competivite these days, but the above factors can still be at play.

Of course, that's not to say that oil price rises and drops won't be reflected at the pumps, but there are many different factors at play.

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Taxi Driver Online
www.taxi-driver.co.uk

Lol, look at me moaning about 90p a litre!!

7 years later . .

I see oil has once again fallen to $88 a barrell.

I wonder when we'll go back to £1.28 a litre like the last time it was under $90.

Yep, exactly. . . .

How much has been added to fuel duty since then?
Was that before the vat increase?

Never mind, the uber rich have a nice tax cut. God bless the union and all who sink in her

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

There was an annoucement yesterday evening that the government will legislate to force oil companies to pass on reductions in oil prices to consumers.

So you never know, it might happen.

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Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
When debating on the TDO Forum.

Yes, they will force the oil companies to reduce prices, so that they can increase Duty.

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Former taxi driver

Exactly. There is only one reason we have the most expensive fuel in the world. HMG

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

Saw a total near me today charging £1.46 for diesel ?? Most garages are charging between £1.39 and £1.41,rip off springs to mind when oil prices are 20% lower and a 7/8p has come off at the pumps

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GuildfordPH

It should be 136.9 like it is up here in the Borders at Esso and Shell

$83 today, look at the fuel prices tumbling . . . . my arse.

one of our BP's (Independant) has come down to 139.9 the other ( BP owned) is doggedly sticking to 143.9 with Morrisons 141.9 the prices are not coming down here much except the one descent independant !

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

BP always seem dearer than everyone else here.
BP £141.9
Shell £136.9
ASDA £134.7

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/