Not technical just curious

[Bogart]

Can anybody explain why I could get heating oil for 72p/l last Monday but by Friday was being asked 92p/l? The word profiteering comes to mind especially when nearly 50% of the cost is taxes in one form or another and the pump price at Asda for my diesel has been steady for a couple of weeks now.

 

[exedon2]

Several variables cost of fuel ex refinery your distributor of choice doing special deals eg amount delivered several deliverers in same area do they want to increase sales by cutting there margin.
One of my mates used to run a12 tanker delivery firm.
They never wanted price of fuel low as they worked on a fixed percentage on cost of fuel.
It was 20% in there case many are higher.
One thing worth knowing is the distributor has to pay for fuel day after collection.
Three years ago my mate was paying out over half a million a day in winter .
Going to be much more now!

 

[SimonG]

Could argue the same with petrol, diesel etc. Crude oil price is low but fuel prices haven't fallen in line with the drop in the raw material.
Anybody would think there's some sort of monopoly?

 

[Chuck]

Just price being used to balance supply and demand.

 

[Bogart]

Could argue the same with petrol, diesel etc. Crude oil price is low but fuel prices haven't fallen in line with the drop in the raw material.
Anybody would think there's some sort of monopoly?

Heavens forbid surely not🤪

 

[Bogart]

Just price being used to balance supply and demand.

Sorry that does not wash with me. Told by one distributor was due to increase in crude price. Told him was not born yesterday!

 

[gpbeck]

To guarantee supplies commodities have to be bought ahead at agreed prices. Any price reductions therefore take time to work through the system. Of course the only driver to a retailer to reflect price falls is in response to its competitors.

 

[Bogart]

To guarantee supplies commodities have to be bought ahead at agreed prices. Any price reductions therefore take time to work through the system. Of course the only driver to a retailer to reflect price falls is in response to its competitors.

Price reductions take their time but increases seem instant.

 

[Chuck]

Sorry that does not wash with me. Told by one distributor was due to increase in crude price. Told him was not born yesterday!

So, having heard your reasoning, to what did he reduce the price?

 

[Bogart]

So, having heard your reasoning, to what did he reduce the price?

No chance. Old sob story .

 

[Enthalpy]

Supply and demand. High gas prices have increased the demand for oil.

 

[Bogart]

Supply and demand. High gas prices have increased the demand for oil.

We have had high gas prices for months. I am talking of a near 30% rise in oil price in the same week.