Well everyone is moaning about how much the crude oil price has come down and yet the petrol at the pump has remained remarkably stable. Fair enough. I think a moan is in order.
The smart people who can do sums say that in September 2007, when oil was last at the current price, petrol was 30c cheaper per litre. But we have to think about the US dollar change. The wise ones still suggest it is reasonable to expect a 15c per litre price drop.
There is a couple of problems though, I don't think there is a rule in business that says if your expenses drop you must drop your prices.
Secondly perhaps the petrol companies want to show just how dependant we are on their product, so it will spur us on to creative methods of transport not requiring petrol.
But there is another factor. Petrol is moved around the country in those big tankers. They don't look light and I bet they cost a bit to fill up their tank. I think we need to factor rising transport costs into petrol pricing. We all know fuel isn't cheap - especially these days.
Episode 888: The First Shutdown
3 hours ago