Oil Price Down - Same Price At The Pump, Why?

[greatjob]

Hi All,

The Crude Oil price went down almost 15% between the 1st of April and this weekend but the gas price at the pump is still at 36-37 Baht.

Any ideas why it is this way?

http://www.eppo.go.t...ail_prices.html

I do not think they just pocket it all without anyone wondering what is happening.

Thanks,

GJ

[richard_smith237]

Just a guess: Could it be 'knock on effect'? i.e. the Gasoline at the pumps was probably purchased and processed before April...

The price of oil appears to effect a huge number of items, however the effect always appears to be delayed.

[steelepulse]

I really haven't seen prices go down ever since oil hit almost 150/ barrel. It went down a bit when oil was below 50, but certainly not what it should have in correlation to oil prices. I can't recall petrol going below 30 baht per litre, even though oil tanked from $150 to $40.

[slapout]

Just a guess: Could it be 'knock on effect'? i.e. the Gasoline at the pumps was probably purchased and processed before April...

The price of oil appears to effect a huge number of items, however the effect always appears to be delayed.

From my observation, the pump prices follow oil price increase, usually within a week. Going the other way seems to take double or more time (2 to 3 weeks). I have noticed some petrel stations in CM will raise diesel fuel by 40 stang a liter on seemly, their mood. This increase is only at individual stations and not company wide (PTT, Esso) are two I have noticed. This will run for 2 to 4 days then drop back to the legal price (controlled).

[MoonRiverOasis]

Gasoline/Gasohol prices are dropping by 60 Satang/L today in Thailand - so it would appear it's just the lag brought on by having old stock.

[soundman]

I really haven't seen prices go down ever since oil hit almost 150/ barrel. It went down a bit when oil was below 50, but certainly not what it should have in correlation to oil prices. I can't recall petrol going below 30 baht per litre, even though oil tanked from $150 to $40.

Here are the product costing breakdowns when oil was 130+ and 45+ $$ respectively.

[powderpuff]

Not to mention the oil stabilization fund. When you run socialist experiments there are unforeseen consequences. But this is normal. The windfall profits go to pay back the stabilization fund.

[steelepulse]

I really haven't seen prices go down ever since oil hit almost 150/ barrel. It went down a bit when oil was below 50, but certainly not what it should have in correlation to oil prices. I can't recall petrol going below 30 baht per litre, even though oil tanked from $150 to $40.

Here are the product costing breakdowns when oil was 130+ and 45+ $ respectively.

Thanks for posting that and confirming that prices did indeed not drop in correlation to the price of a barrel of oil. Oil dropped to 1/3 the price of it's high, yet the price at the pump came nowhere close to that. If 95 was 42, it should have dropped to 14, not 29 as just one example.

Interesting also is the margin the the gov't allows, depending on what the cost was before they allowed for "advertising". It looks like it's very profitable to be in the petrol station business!