Crude Drop %20, But Gas Still At 41+ At The Pump. What'S Wrong?

[nikkoid66]

It is normal that the Oil price in Thailand is still at +41 / Liter when the real oil price the big company pay has dropped more than %20???

Post by Nikko@ http://fb.com/gopattaya

[Fookhaht]

Oil industry rule of thumb: retail prices never go down, no matter what happens with the crude price. Observed in over 60 years in the USA, watching prices climb from 19¢ a gallon to over $4.50 a gallon. Thai company execs must have been trained in the west. ;-)

[KeyserSoze01]

Got nothing to do with the oil companies. It's the futures markets where speculation takes place on the oil supply based on what's in the pipeline, international reserves and demand. The 20% drop in futures prices we have seen recently are due to increased margin requirements on oil futures trading. Traders don't have the leverage they once had, therefore can't lever up on futures contracts, reducing their exposure and their broker's. Another factor is deflationary trends hitting the markets, again due to our friends the Greeks. Everyone and their brother is de-levering, raising cash and reducing risk.

[Fookhaht]

I defer to the experts on this one. ;-)

[timekeeper]

the red government cancelled the oil fund that stabilized the price at the pump, plundered the account, left oil to float free and the ignorant masses are left to pay for it........

Edited May 20, 2012 by timekeeper

[besth]

It is a simple market rule. If prices of oil go up, prices at the pump station go up. If prices of oil go down, prices at the pump station stay up. May conflict with logic, but it is economics 1.1

[PattayaParent]

I filled up last week and noticed the pump prices had come down. It was 36.xx

[Rimmer]

Moved to General Topics

[arthurwait]

Prices have gone down last week, but don't expect too much as the government blew the emergency oil fund on their popularist policies dropping the price per litre by about 5 or 7 baht ?

No one is allowed to sell cheaper than PTT and no one would buy it if you tried higher if there is one near you.

Selling prices from 16/4/12- 18/5/12 95-91- Diesel.

48.82 43.87 32.05 48.82 43.87 32.05 48.82 43.87 32.05 48.82 43.87 32.05 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 48.42 43.47 31.65 47.92 42.97 31.15 47.92 42.97 31.15 47.92 42.97 31.35 47.92 42.97 31.35 47.42 42.47 30.85 47.42 42.47 30.85 47.42 42.47 30.85 47.42 42.47 30.85 47.42 42.47 30.85 47.42 42.47 30.85 46.62 41.67 30.45 46.62 41.67 30.45 46.62 41.67 30.45 46.62 41.67 30.45 46.62 41.67 30.45

and todays price which went down on Friday or Saturday 46.32 41.37 30.15

So thats a drop of 6%.

Edit: sorry the table has had a mind of it's own.

Edited May 20, 2012 by arthurwait

[nong38]

Well we hoped you would not notice prices going down, but now you have we will put it on the agenda for next month, thank you for bringing this to our attention!!

Always quick to raise prices at the pump, not so quick to reduce, same in the UK. Thers is nothing you can do about it, its out of our control.

I remember seeing headlines like "Govt ( or someone in GOVT) gives the nod for price hike." Never see the headline " Govt gives nod for price fall."

[JoePai]

Price will be lowered tomorrow morning for all TV members (well ok, and others)

[arthurwait]

So per litre diesel is a third of the price of a beer in seven eleven and a fifthteenth of the price of a beer in Soi cowboy and Nana.

Just a thought.

[planr]

For what it's worth, wholesale refinery prices are only up a few baht per litre (for diesel, gasoline, gasohol) over the last six months. What you see at the pump has more to do with PT fooling with the various taxes / levies associated with each fuel type to meet campaign promises and then re-adjust to reality where cutting the taxes is a bad idea.

[Gonsalviz]

It does not help that the USD is getting more worthless and oil purchased with USD. Also the Thai Baht has gone down against the USD.

[farang000999]

i don't get these threads. in the usa the price of gasoline goes down all the time. <deleted> are these people talking about?

[besth]

If production prices go up, pump prices go up. If production prices go down, pump prices stay up. Basic.