Why is the price of petrol still so high when the price of crude oil has plummeted ?

We read that the price of crude oil has plummeted so far that OPEC has taken the decision to reduce production to keep the price from collapsing. While at the same time, while petrol prices at the pump have slightly reduced they are still rediculously high.





So who between the crude oil being pumped out of the ground and the petrol being pumped into cars is making some serious money at our expense ?





Source: http://www.guardian.co.uk/business/2008/鈥?/a>Why is the price of petrol still so high when the price of crude oil has plummeted ?
I believe the crude oil is purchased under a ';futures contract'; and unfortunately this means that they are contracted to buy at an agreed price. No doubt a contract at a lower price has now been agreed and in due course this might be reflected in the pump prices. However, OPEC will undertake production reductions to adjust the supply of crude oil and I can predict a substantial increase in retail prices. There are too many greedy sods around and we are the scape goats.Why is the price of petrol still so high when the price of crude oil has plummeted ?
Gas prices are higher than one might expect them to be, but that will change. The reason gas is so high right now is because it takes a few weeks for the cheap oil to be bought and shipped to refineries, it then takes a few more weeks for the oil to be refined to gas, it then takes a few weeks for the gas to reach your gas station. It is not pleasant having to wait, but prices at the pump should start and continue to drop for the next month or two.





Unfortunately, OPEC, which controls most of the world's oil just decided to decrease production by 1.5 million barrels a day. That will decrease supply and cause prices to eventually go back up.





I hope that helps. Go to Truly Newsworthy (http://www.TrulyNewsworthy.com) for great information about this subject and other U.S. and international news. I strongly recommend it.
They are working on the details of this . Because the pump price is still so high, when they gas up the tankers that deliver the gas to the stations they still cost a lot to run on the delivery's. As soon as the first company drops the price $1 the tankers will be able to truck the gas more efficiently. LOL
OPEC are trying to cut back production again which will force prices back up! It was on the news today. But the supermarkets have been cutting prices anyway. In June, I was paying 拢1.20 for a litre of unleaded, but now it's under a pound again. BUT - I get your point.If you take the tax out of it, I reckon it should be about 60 pence a litre.
Hello - long time no speak!





Come on now - petrol prices are lower than they have been in a VERY long time - newbie driver status is clouding your mind on this one.





Yes they are still TOO high but isn;t that the case for many many things in this country? I'd rather they addressed gas and electricity personally!





btw, say hello to Mrs pdr for me, I'm worried about her
Jesus do I really need to explain this one YET again??? Oil is priced in dollars and as it's extraction price has fallen SO HAS THE GBP in comparison to the dollar.





I really wish you numb nuts paid more attention in economics lessons.
It's back to less than a pound a litre in most places which is a start.


We could do With the government reducing the tax on the petrol, that would let prices drop!
The greed of the multinational gas companies and the multinational gas distillers. They are screwing record levels of profit out of us.
The price of unleaded dropped to 93.9 pence per litre at my local Morrisons this morning ( Saturday ).
Petrol should be around 75p per litre, that's what it is worth, the rest is blatant greed on the part of OPEC!
around here petrol prices have dropped
Oh c'mon, 17pdr.... you have never heard of greed , have you ???
now they have cut production,so it's going back up now