Why aren't the petrol prices coming down?

C

colin79ie

Registered User
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370
Why are petrol and diesel prices not coming down in proportion to oil. Today a $115/barrel
 
My local petrol station has gone from €1.32 to €1.27 in the last week. Are others not coming down too?
 
That's under a 4% drop versus ~20% drop in the price per barrel.

I don't know, I've been watching the Euro/US exchange rate. It's dropped from nearly hitting 1.6 down to 1.5 in the last week or so. That's over a 6% drop. I wonder is that effecting us? It was puzzling me too.
 
I think there is little competition in this area. when travelling round the country i notice many stations closed down.
 
What I can't understand is when prices were rising on international markets the price rises were reflected at the pumps almost immediately. Now that they are falling the prices at the pump don't seem to be falling as fast.

I wonder how the international price of oil will be affected if any of the two pipelines supplying the west running through Georgia are hit by Russian bombs?
 
dem_syhp said:
That's under a 4% drop versus ~20% drop in the price per barrel.
Click to expand...
When oil prices doubled, did petrol prices double? Apply the same logic on the way down. 100% of the price of a litre of petrol is not all due to the price of oil, you have taxes, refining, distribution, sales etc...
 
Tesco drove out Statoil, Shell etc by selling at slightly above cost and we now have one company, Topaz, with a majority stake in the petrol retailing industry.
 
It never amazes me the amount of big business / poor government conspiracy theories you see about the "high" price of petrol/diesel in ireland.

Any comparison shows our prices to be well below the EU norm.

http://www.aaroadwatch.ie/eupetrolprices/

As diarmuidc aluded to the bulk of the price you pay for petrol in this, and most EU countries, comprises of tax. This dilutes the effect of rises and falls in the raw matierial.

Also, oil is priced in dollars which has strengthened considerably over the last couple of weeks. As a result the euro oil price hasn't fallen by as much as the headline dollar figures.
 
Many filling stations are in serious financial trouble, especially those who haven't the facilities or passing trade to generate significant income from deli & shop sales. The town of Killeshandra Co Cavan has for generations had two filling stations, one in the town itself and other a couple of miles outside the town on the road to Cavan. Both these stations have closed in the past 15 months. According to the Anglo Celt, this is the first time in 100 years that it is impossible to buy petrol in Killeshandra.
 
Howitzer said:
It never amazes me the amount of big business / poor government conspiracy theories you see about the "high" price of petrol/diesel in ireland.

Any comparison shows our prices to be well below the EU norm.
Click to expand...
Must be the only thing in Ireland where prices are below the EU norm!
 
carpedeum said:
Tesco drove out Statoil, Shell etc by selling at slightly above cost.
Click to expand...

Is this really true? I'm not so sure. Tesco's share of the fuel market is a small fraction of the corresponding Shell/Statoil share. I was under the impression that the sale to Topaz was governed more by policies of corporate rationalisation than anything else.
 

Correct - Shell and Staoil both decided to get out of the Irish petrol retail market for corporate reasons (low margins?). Topaz bought up both and this was reported in the business papers as a property play. It was said that they would close down stations in sites with development potential. I remember there was mild controversy over the Topaz purchase of statoil as the competion authority missed some deadline which meant that they were unable to investigate if the merger between 2 of the major retail suppliers would be good/bad for customers.
 
I always keep an eye on my local Texaco petrol prices.
Last week Unleaded price went like this...
Tuesday: 134.9
Thurs: 131.9
Fri: 129.9
Mon: 127.9

May the trend continue ...
 
Topaz has been steadily dropping its prices on the road outside work - went from 127.9 to 125.9 overnight.
 
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