Election Year or Fear!

[SithHappens]

Both Starmer and Davey made Farage look a Muppet today in PMQ'S

[Ram Pant]

Question for the financial wallahs on here.

The petrol we buy today was refined several weeks ago, it was pumped from the wells months ago. It was paid for months ago at a much cheaper going rate. So, why have petrol prices at the pump shot up?

2nd question, when the crude oil price drops again, why will the drop take time to reach the pumps?

[ramAnag]

Question for the financial wallahs on here.

The petrol we buy today was refined several weeks ago, it was pumped from the wells months ago. It was paid for months ago at a much cheaper going rate. So, why have petrol prices at the pump shot up?

2nd question, when the crude oil price drops again, why will the drop take time to reach the pumps?

Same goes for heating oil. Filled my 1200 litre tank up about four weeks ago for 60p pl. Today it’s around 1.31 pl and I don’t believe all the oil they’re selling has reached here in the last 18 days. Heating oil customers often buy up to three weeks in advance to get a better deal, i.e. if you want it tomorrow it’s often much more expensive than if you give them a 20 day delivery window, but there are reports of orders being cancelled and customers being told they have to reorder at the new, much higher, price.

[Andy_Faber]

Same goes for heating oil. Filled my 1200 litre tank up about four weeks ago for 60p pl. Today it’s around 1.31 pl and I don’t believe all the oil they’re selling has reached here in the last 18 days. Heating oil customers often buy up to three weeks in advance to get a better deal, i.e. if you want it tomorrow it’s often much more expensive than if you give them a 20 day delivery window, but there are reports of orders being cancelled and customers being told they have to reorder at the new, much higher, price.

There’s bound to be some profiteering going on but in terms of your purchase of heating oil, you aren’t actually paying for your oil, you’re paying for the next delivery of oil your supplier needs to buy, which will have risen in price from their suppliers etc - added to which wholesale suppliers keep the bare minimum stock they can get away with and profit margins are quite thin. My knowledge is of marine fuels (mainly diesel) but I think the same rules apply. Such ‘close to retail’ entities are too small or to unsavvy to hedge, many years ago my old farmer boss used to hedge a bit by keeping a spare bowser full of oil but it got pinched…

[ramAnag]

There’s bound to be some profiteering going on but in terms of your purchase of heating oil, you aren’t actually paying for your oil, you’re paying for the next delivery of oil your supplier needs to buy, which will have risen in price from their suppliers etc - added to which wholesale suppliers keep the bare minimum stock they can get away with and profit margins are quite thin. My knowledge is of marine fuels (mainly diesel) but I think the same rules apply. Such ‘close to retail’ entities are too small or to unsavvy to hedge, many years ago my old farmer boss used to hedge a bit by keeping a spare bowser full of oil but it got pinched…

Thank you, and I?m aware that I may be failing to understand this properly, but if that?s the case, why is it that, in normal (non war situations) the price of heating oil, as everyone knows, is significantly cheaper in summer, when we all try to top up, than in winter?

[swaledale]

Thank you, and I?m aware that I may be failing to understand this properly, but if that?s the case, why is it that, in normal (non war situations) the price of heating oil, as everyone knows, is significantly cheaper in summer, when we all try to top up, than in winter?

Thats a simple one, supply and demand and cashflow. So demand is obviously less in summer, which means lower turnover of product and less cashflow for the busness, so drop the price a little to encourage purchase of whatever commodity one is selling and increase cashflow to ensure at the very least fixed costs of the business are met and possibly a lower margin of profit.

In tims of high demand i.e. winter, the price will epend upon 1) cost to suppliers 2) the profit margin the seller wnats of needs to make 3) Whether demand is at a level which enables a higher profit margin to be made

[swaledale]

Question for the financial wallahs on here.

The petrol we buy today was refined several weeks ago, it was pumped from the wells months ago. It was paid for months ago at a much cheaper going rate. So, why have petrol prices at the pump shot up?

2nd question, when the crude oil price drops again, why will the drop take time to reach the pumps?

Its called capitalism and the "free" market.

[macstheman]

I don't think that needs answering RP, it's the norm for the greedy money grabbing gits. Happens every time they see the opportunity for a quick grab of extra profits at our expense. Multi billion profits aren't enough for these ****ehounds!

[Ram Pant]

The good old "anything that helps us fleece the sheeple is good".

[macstheman]

[QUOTE=swaledale;40811751]Its called capitalism and the "free" market.[/QUOTE

In other words 'fcuk 'em' they're only plebs!