Petrol Madness

[I-S]

I'm very glad I filled my car up yesterday. 50 odd litres at 88.9p/litre.

This morning I drove past the same petrol station. 91.9p.

This afternoon on my way home.... 93.9p. At this point the place was packed with people panic buying.

So, my questions are:

1) Refineries have been heavily impacted in the US but not here. We import crude but not refined fuel, so why is the price going up?

2) Crude prices have dropped back slightly due to releasing of reserves. Thus there's no reason for our pump prices going up. Why are they?

3) What possesses people to panic buy fuel at a high price when we're not facing a shortage?

 

[Hex Spurt]

So, my questions are:

1) Refineries have been heavily impacted in the US but not here. We import crude but not refined fuel, so why is the price going up?

Oil is traded as a world commodity. Scarcity in one region affects all.

2) Crude prices have dropped back slightly due to releasing of reserves. Thus there's no reason for our pump prices going up. Why are they?

Trading is based on Futures and Contracts as well as the Spot market. The spot price may be falling but the underlying trend is rising.

3) What possesses people to panic buy fuel at a high price when we're not facing a shortage?

I'm not sure about this - perhaps media coverage fueling (sorry) the fear of further rises.

Why do people pile the trolley high at Christmas like they think the shops will be closed for a week instead of two days max.

 

[wadia-miester]

Your lucky Iassc I was in Weighmouth this week diesel £100.9 per litre

 

[joel]

Black Gold

diesel £100.9 per litre

Bloody hell! I know what I'll be packing in my bags next time I head to the UK

 

[Graham C]

We are supposed to be giving [loaning] our refined stockpiles to the US to help their shortfall [so they can drive hairdresser cars].

Their reserves are mainly of crude, not refined product. With refineries out, they are struggling. That said, I don't think we should loan them it until their petrol prices match ours. Why are we endorsing their enviromental recklessness??

It just takes Osama to notice that all the West has low reserves in 2 weeks time, then...

 

[nsherin]

Just been up the Eastern Road in Portsmouth this morning. Fuel at the Esso garage was about £1.09 per litre.

 

[Whinging Pinko]

Short term prices are high because the US lost some refineries in Katrina's wake. They have bought up stocks of refined oil, pushing the prices up.

Simple.

Don't think they'll be coming down as quickly somehow, regardless of what the oil companies pay for their stocks.

 

[domfjbrown]

Maybe the US should have survived on what they have, since a small percentage of the storm is probably due to global warming, and guess who hasn't signed the Kyoto Protocol?