Oil Price Rising

[Tarrel]

Anyone been checking the crude oil price? It's been rising relentlessly since the beginning of the year. Now highest since May last year (nearly $120 a barrel).

http://www.bbc.co.uk/news/business/marke..._month.stm

[Hex]

i havent been keeping up with the crude oil prices, just the fuel prices. im curious how much higher they can take them before people cant afford to get to work anymore. im thinking if fuel gets much higher im gonna have to bike to work, but then ill probably get taxed on that too....

[Scythe13]

Damn right.

War ALWAYS increased the price of oil.

Quids in mate!!!

[Highlander]

Well you guys have a bit to go yet before you get to our £1.63 a ltr for diesel, although we do understand that tankers have to come a long way to get to our fuel stations

[Madgirl151]

Dont the tankers come from aberdeen?????

[Highlander]

I dont know for sure,.. quiet possibly, but even then it would be about four hours drive each way

[Metroyeti]

Oh works for a petrol garage the amount of fuel wasted by not organizing tankers is unreal they can start in middelsbrough do runs to leeds then get sent to newcastle for one drop off.

[Tarrel]

The main refinery in Scotland is at Grangemouth, near Falkirk. I imagine most fuel for Scottish filling stations will start its journey there.

The other issue with the prices in remote areas is the lack of sales volume. A city, suburban or highway based filling station can afford to keep its margins thin because of the high passing traffic and sales of other products as well as fuel. Rural filling stations just don't get that volume, so have to keep their margin relatively higher.

Going back to the original point, don't forget that oil-prices impact a whole lot of things apart from the cost of fuel in your tank. Heating oil, cost of distribution of food and every other consumer product, aviation fuel, bus fuel, train fuel, pesticides, fertiliser, plastics, etc, etc. Expect inflation to climb if these price rises continue.

Just to add fuel to the fire (lol!), the pound has been falling against the dollar recently, meaning that oil is even more expensive to obtain for British-based refineries.

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Just thought I'd brighten your day!

[bigpaul]

i used to look at oil prices on nearly a daily basis for about a couple of years and log every rise but TBH i got bored with it, nothing i can do about it, i just visit the filling station and pay whatever the pump says, we only have a small 2 pump station here and its at the end of a very long supply chain, next one is in a town 6 miles away, next is at Mole Avon stores 8 miles away and the next 13 miles, its easier just to go to the local station 1 mile away and just pay whatever it is!

[Scythe13]

(9 February 2013, 22:19)Highlander Wrote: Well you guys have a bit to go yet before you get to our £1.63 a ltr for diesel, although we do understand that tankers have to come a long way to get to our fuel stations

Distance has nothing to do with price. It's how much the pump's owners can sell it for.

Motorway services are the ideal example. If you're happily selling 1000 litres a day at £1.50 and making a nice margin, then you will. If there's a station a mile away selling fuel for £1.55, why not increase your price to £1.53? It's only £30 a day more, but you're doing the same thing and getting £210 more profit a week! Same as price drops. Until it's financially viable to reduce the price, why would a petrol station reduce their profit?