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Oil Prices Fall, Why Not Gasoline Prices?!

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I know, the government tries to repay huge debts accumulated through subventions.

but then again:

since july oil prices have fallen around 25 percent.

gasoline prices in thailand have fallen around 10-15 percent.

are consumers cheated?

No, the Thai goverment subsidized fuel prices and pressurized the oil companies to maintain lower pump prices than the feed stock would dictate.

So the first recovery in the feedstock oil prices will be swallowed by relaxing those market controls.

No, not really. They have 80 billion debt in Oil Fund that they ran up subsidising prices a year ago. Consumers are just paying their subsidies back.

  • Author

oh, another populist policy we have to cover now.

And why arent airline fuel surcharges not dropping ??

And why arent airline fuel surcharges not dropping ??

Because they are used to it and want the extra income. :o

oh, another populist policy we have to cover now.

I don't recall any complaints when you were on the receiving end.

  • Author
oh, another populist policy we have to cover now.

I don't recall any complaints when you were on the receiving end.

no? then you were obviously not paying attention.

thank you honorable GuestHouse for showing me what a miserable hypocrit I am.

thank you for opening my eyes to the God-given realities men cannot change.

thank you.

Edited by danone

oh, another populist policy we have to cover now.

I don't recall any complaints when you were on the receiving end.

no? then you were obviously not paying attention.

thank you honorable GuestHouse for showing me what a miserable hypocrit I am.

thank you for opening my eyes to the God-given realities men cannot change.

thank you.

Wow, that's big of you, danone . . . I'd probably be quite pi$$ed off with Guest House, but 'you're a better man than I, Gunga Din' . . .

Takes time for prices to reach the petrol pumps??? :o

Maybe someone, somewhere, is trying to make money at somebody else's expense.

And why arent airline fuel surcharges not dropping ??

Because they are used to it and want the extra income. :D

Ain't that the truth! :o

Maybe someone, somewhere, is trying to make money at somebody else's expense.

Noooooooooooooooooooo, surely not . . .

petrol companies are all greedy, In Oz they have come down alittle but it should be more, also when a punlic holiday is comming up they all seem to jump up in price for that week.

The price of crude is only one factor in the price of petrol at the pumps. Refining, the current price of freight and other reasons also contribute, so one should not expect a direct relationship in the prices of crude and of petrol.

Bear in mind as well that all oil companies hedge their exposure using oil derivatives, so even the future price of crude is smoothed out more than the spot price might suggest. Airlines do this too; IIRC Southwest Airlines in the US had comparatively strong profits during the recent crude surge because they had a larger proportion of their Jet fuel hedged at a lower rate than their competitors, so were able to continue operating without having to pass on the price hikes to the consumer by introducing fuel surcharges.

Well, Meerkat, yes and no. Everything is scyclical and interconnected, but in the end our purchasing power never reaches the levels it once had - - - even if commodity prices go down substantially.

  • 2 months later...
  • Author

oil prices went down 15 percent that past two weeks, tomorrow we get a discount of 40 satang ...

pure rip-off, nothing else.

The oilprices you see on bloomberg or some other financial source or contracts for delivery february or march.So I think if the oilprice stays at this level for the rest of the month you should see a price drop at the pump next month.

I remember 95 octane at 31 baht/liter a few months back, now it's around 26; quite a drop, more to come....

Over here it takes a $1 drop per barrel of oil to see a 2 to 4 cent drop in fuel prices. You don't see a drop right away because we are looking at oil delivery contracts a month or more in the future. So take an arbitrary day and an arbitrary oil price and an arbitrary fuel price. To see a drop at the pump, you need to see a price drop in oil and a continued price that is lower than what is set on that arbitrary day. This oil delivery contract will be lower in cost than the previous and will therefore bring with it a lower fuel price.

At least this is the way I take it...anyone else with more knowlege on the subject correct me if I am wrong.

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