Now that the price of oil has fallen to around $90 a barrel...?

Can anyone think of some genuine reasons (i.e. not greed or artificial pricing) why the cost of petrol has remained as high as it is?





In 2006 (when oil was roughly around this price) petrol cost about 90p/litre when it reached its peak.





So do you think this is justification for fuel companies (as well as energy providers) to be encouraged to lower their prices again? or will this just not happen?


Now that the price of oil has fallen to around $90 a barrel...?
You have to realize that retail pricing is based upon the price of the crude oil when it was purchased. the gas (petrol) you are buying todat was refined last week, and the crude oil for it was purchased perhaps a month ago. (Remember the oil is bought in the middle east, and then shipped to the refinery.). Therefore it is very possible that the gas you are buying today, was made with oil that cost $120 last month.


The reverse is true from last year. When oil was $90, the gas you were buying was made with oil that cost $80 when it was loaded on the tanker. So the price of gas will continue to fall as the price of oil falls, but you literally have to wait until the more expensive oil is out of the pipeline before the retail price settles.


Now that the price of oil has fallen to around $90 a barrel...?
No - of course it is too high, when the purchase price has dropped.





HOWEVER the UK pound has dropped in value against the US dollar by about 20%. Therefore as oil is sold in dollars it has gone up in price by 20%. So the price in pounds is roughly the same!





All our imports (majority priced in USD) will be 20% more expensive from now on!





No one from the Government is going to tell you this!





Welcome to Gordon Brown's disaster land!
The fuel companies probably have, but the government have got us over a barrel (so to speak) now with the tax on the fuel, it will come down I am sure, but even if oil went down to $60 a barrel I bet we will never see our fuel under 拢1 a litre again, we will just roll over and accept it as usual
If the value of the dollar strengthened further it may be reasonable to expect a reduction of petrol price.
its a perfect time for big oil to exponentially increase their record profits
have you heard of OPEC?