cost of fuel

[cazzz1975]

how is fuel going up so quickly in price in the UK when the price of crude oil is not rising so quickly?

[Kos]

Profiteering , they call it

[alexanderd]

If you ask the oil companies they will tell you "We are still supplyng oil bought when the price was high" Watch out for flying pigs!!!

[lilmissblush]

cause we are going into war with Libya and they have most of the oil.

[New Judge]

Libya is responsible for about 2.1% of the world’s oil output – a little less than Angola (2.2%) and a little more than the UK(1.9%).

[cazzz1975]

I thought so.. :(

[DTCwordfan]

the answer that "We are still supplyng oil bought when the price was high" is in part BS. Prices at the pump adjust quickly to crude pricing as the basis of pricing is what is termed as "current pricing" or LIFO in accountancy, Last In First Out.

Failure to practice this could risk serious discords and even major cash-flow issues (insolvency) if a company (and not just oil but anything) prices to historic or a FIFO basis.

In practice there may be a lag effect as supply contracts are built like club sandwiches of term prices but there is always an element of todays (spot) market in the pricing, called Platts, but this is merely the execution of accounting and nothing to do with the rationale of pricing at the pump.

Platts has been fairly constant this month with a slight rise, reflecting concerns on Libya.

see http://www.oil-price.net/

Libya is indeed small beer in world terms and Saudi has indicated it would cover the supply deficit with their light oil. Libyan crude is fantastic crude as it is very light and "sweet" (without sulphur). A good percentage of their exports (circa 1.4 million barrels a day) has ended up in the UK, mainly running through Shell's Stanlow refinery near Chester. It is a great crude to make petrol and diesels from......

L

[Dagman]

The already rich fat cats and politicians have to get their money from somewhere. As Koode says, Ripoff Britain!

[joggerjayne]

At the BP station at the rabbit roundabout, a litre of diesel is £1.40 something.

It seems like no time ago that it first crept over £1.00.

But it's a one-way ratchet.

The cost of crude goes up ... the price of fuel goes up.

The cost of crude goes down ... the price of fuel stays the same.

The cost of crude goes back up ... the price of fuel goes up (even though the pump prices had already been increased to reflect the price of crude when it was previously at this same level).