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Old 10-06-2008, 09:30 AM
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StumpyPete StumpyPete is offline
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Quote:
Originally Posted by Wagner
Oil has fallen nearly 60% (147--->89)
No it hasn't - that is a 40% reduction (39.46%)

Quote:
Originally Posted by Wagner
Fuel has fallen (in the states) from est. $4.00/gallon to $3.63/gallon, percentage: 9% roughly.

If fuel prices fell from $4.00 by even 40% the price would be: $2.40

Think about this as well, Unleaded gallon trading on the market was: $2.23USD/gallon
You are forgetting that the petrol retailer needs to pay staff, overheads and make a profit, plus there is the cost of refining, transportation of the oil to the retailer, and any taxes - so retail prices are always going to be significantly higher than the trading price. Fuel prices always lag the market prices - fuel in the forecourt now was probably purchased 2 weeks ago and so it should be compared against the oil price at that time. However it is true that prices go up faster than they come down.
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Last edited by StumpyPete; 10-06-2008 at 09:36 AM.
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