Monday, 24 August 2009

The price of petrol !

We seem to be accepting the great con job that the oil companies use to explain the weird gyrations of petrol prices.

It is all governed by " the price cycle " we are assured. This is so complex that it defies rational explanation - and it surely contains an element of smoke and mirrors because no matter whether crude rises or falls - we can be certain that the price at the pump will be higher on pay day, higher over the weekend - and sky high the moment there is a public holiday long weekend or other reason for mass travel.

But we are offered some relief. " Cheap Tuesday " is the day of the week when the price is at it's lowest, but that is also the time when the average person is less likely to have spare cash available to fill the tank.

Any thinking person will realise that there is absolutely no connection between the price of crude today - and the petrol waiting to be sold at the service centre.

The crude gushing out of the ground in some foreign country will be pumped into storage tanks awaiting it's transport in a super tanker to a refinery somewhere else in the world. It will again go into storage tanks - until the refinery is ready to deal with it - and then in refined form it will go back into yet another tank farm.

Eventually, a road tanker will be filled and it will be delivered to another storage tank - at a petrol station near you !

The gap between crude out of the ground and refined petrol at the bowser has a long lead time - too long to reflect an immediate impact on the price demanded.

Obviously the " price cycle " is nothing more than a decision by the oil company bosses to extract the most profit from the poor mug motorists - while at the same time giving the illusion that market forces are in play.

At least that is perfectly clear !

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