- the price of crude oil has dropped by 13% in the last week
- the New Zealand dollar has dropped in value against the US dollar, from a record high of $0.81 on Friday to $0.78.7, a drop of 2.83%
- petrol at the pumps has dropped by 6 cents/litre this morning, a drop of 2.72%
Even allowing for the drop in our exchange rate against the $US, a 2.7% drop in the price of petrol, whilst welcome, suggests that someone is making a killing, and it ain't you or us! Or have we got our sums wrong?
Come on fuel companies. You are very quick to react to price increases, so how about sharing the love with your customers, or is that too novel an approach for you to consider?
6 comments:
The oil companies are making a killing - they're just making it at the refining stage, rather than at the pumps.
Oh, and the government's not doing too badly on the tax-take front either.
Never forget the plundering being undertaken by the government no matter what the price of crude is!
Cadwallader
It's called capitalism. Walk or ride a bike if you don't want to pay this much for petrol. Stop your whining at least!
Oil cargoes for refining are bought a long way in advance, and then must be 1.) refined and 2.) transported here. i.e. the petrol we get at the pump was probably actually bought by the refineries / distributers a month or so ago (at least). Takes a while for the price changes in the raw feedtsock to translate into higher lower (or higher!) prices at the pump.
And by the way - refining margins are low. Refining is not actually a particularly profitable business, particularly given how capital intensive it is.
Spam - refining margins have doubled in the past year a quick google will show you that they're making a GM of about $20 a barrel.
Astounding socialism!
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