# Fuel Price Cuts - who benefits?



## richtung (Apr 14, 2008)

Morning,

Was just discussing with the wife in the car this morning about the price of fuel - our local Tesco had just reduced Petrol to 99.9p.

We all remember a few years ago when fuel prices rocketed and got very close to the £1.40 mark (for petrol), many companies (haulage firms, couriers etc etc) were crying poverty and claimed they would have to pass on the price increases to customers in order to stay afloat.

Now that fuel prices have dropped again, has anyone noticed any price reduction from any company that has benefited from the fuel price drop??

Would be interested to know...

Rich


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## Beatman (Jun 6, 2010)

The company who put up the prices initially to cover higher fuel costs. 

It's the same as the mortgage interest, that never, comes down at the same rate as the base level, but goes up just as quick.
Crude oil has been as low as $22 a barrel recently but it took completion from supermarkets to bring the costs down, no big fuel companies have ever been on the news stating they r cutting their fuel,price.,yet it all comes from the same refineries. 

We are all car owners but have you seen engine oil, tyres, or other oil based product drop in price, I don't think so, it give with one hand take with the other


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## empsburna (Apr 5, 2006)

Good question. You don't really see how the increase was passed onto the consumer.

Good news for the average motorist and anyone that heats home with oil! 

I can't see the price of crude going up again for a while but it has always been feast/famine industry and pretty volatile - I don't think there is going to be the same demand for a while so we can continue to squeeze the Russians/Iranians (I wasn't old enough to remember the Soviets being squeezed out in the 80's )


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## empsburna (Apr 5, 2006)

Beatman said:


> We are all car owners but have you seen engine oil, tyres, or other oil based product drop in price, I don't think so, it give with one hand take with the other


I don't think we will see those dropping for a while yet, mainly wait for China/India to drop prices and then I think we will see it. It is quite far away from the crude at this point.


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## Soul boy 68 (Sep 8, 2013)

I remember in 2000 when petrol hit the £1 mark for the very first time, all hell broke loose with blockades at forecourts and lorrys on the go slow on motorways, when it hit the £1.40 mark not so long ago, not a dickybird.


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## Natalie (Jan 19, 2011)

richtung said:


> We all remember a few years ago when fuel prices rocketed and got very close to the £1.40 mark (for petrol),


I remember the strikes in the late 90s (early 00s??) when it reached £1 p litre!


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## Liam85 (Mar 25, 2015)

I pay 55p a litre for my diesel


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## Kerr (Mar 27, 2012)

The same thing happens all the time when the price of oil crashes. It causes more harm than people it benefits.

There's a lot of people out of jobs, or at risk at the moment. That knock on effect causes more harm than people saving a few quid at the pump.


When you've got an articulated lorry full of stock, saving £200 on fuel for a journey may be great for the haulage company, but if you split that £200 between all the items on the lorry, there's not really much off individual items. 

The energy companies have gone really quiet about price decreases. I guess the problem they have is the winter has been really mild so far. Infact there's not been a winter yet. They should pass the savings on, but they'll also be hit by low usage. 

Other than saving a few quid filling up your car, I wouldn't expect to see any difference again. Even then what you are saving is nowhere near what most people think they are. 

Obviously in previous years there used to be mass demonstrations when the price of petrol went up. Most people now don't even bother.


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## Soul boy 68 (Sep 8, 2013)

Liam85 said:


> I pay 55p a litre for my diesel


Rub it in...


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## steelghost (Aug 20, 2015)

Problem with oil is that it costs $60-$70 / barrel to get out of the ground - but the world's economy can only pay half that for it. It's driving the oil business into the ground. I shan't shed any tears for oil companies but everyone depends on the products they deliver....


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## justina3 (Jan 11, 2008)

Liam85 said:


> I pay 55p a litre for my diesel


How ?


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## Marve (Jul 5, 2013)

Beatman said:


> It's the same as the mortgage interest, that never, comes down at the same rate as the base level, but goes up just as quick.


Base rate hasn't been reduced for almost 7 years now. Granted it is low, but it has been low for 7 years, there are no further savings to be had from falling rates.


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## Andyg_TSi (Sep 6, 2013)

One noticeable thing is that rather than increase the price of goods, companies have absorbed costs by shrinking the size of their products while maintaining price.

Noticeable in confectionary, washing powder etc. 

Notice how the size of chocolate bars and other things have got smaller over the past few years, but the price hasn't come down?

Effectively, this is a price increase on a £ & pence per gramme weight basis


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## Brian1612 (Apr 5, 2015)

Work in the industry myself and it's pretty bad at the moment. No doubt it will go back up, just a case of when. Doesn't benefit me as I drive about 70 miles a week.


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## Hereisphilly (Nov 17, 2014)

Company I work for makes pressure vessels & storage tanks, with quite a few clients being oil & gas companies

We've noticed that their enquiries have basically dropped off a cliff since the oil price started to take a tumble


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## Franzpan (Mar 2, 2009)

justina3 said:


> How ?


I Have no idea :lol::thumb:


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## Darlofan (Nov 24, 2010)

Years ago as prices rocketed food manufacturers ramped up their prices, I remember flour costs rocketing because of the cost of diesel to shift the stuff around. This forced any manufacturers that used flour, bakers etc to put up cost of bread etc. Anyone seen manufacturers on the news lately telling us things are dropping in price? 

They're all the same, things shoot up in cost but don't drop as fast. Utilities, manufacturers, hauliers etc etc. Even employers, for years we had a letter each year saying pay rises were not happening or were minimal due to the economic climate/recession. For last couple of years we get the newsletters etc telling us how well the company is doing yet pay rises are still at the minimum. Just life I guess


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## Darlofan (Nov 24, 2010)

Andyg_TSi said:


> One noticeable thing is that rather than increase the price of goods, companies have absorbed costs by shrinking the size of their products while maintaining price.
> 
> Noticeable in confectionary, washing powder etc.
> 
> ...


I'd rather it reduced in size rather than go up in price, if I fancy a chocolate bar I buy 1, I never think ooh that's smaller i'll have 2. Washing powder etc though is sneaky as you don't get the same washes etc.


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## Andyg_TSi (Sep 6, 2013)

Darlofan said:


> I'd rather it reduced in size rather than go up in price, if I fancy a chocolate bar I buy 1, I never think ooh that's smaller i'll have 2. Washing powder etc though is sneaky as you don't get the same washes etc.


It's still an effective price increase because your paying the same for less product.

If the companies had left the size of the goods the same the price would've gone up anyway.


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## Darlofan (Nov 24, 2010)

Andyg_TSi said:


> It's still an effective price increase because your paying the same for less product.
> 
> If the companies had left the size of the goods the same the price would've gone up anyway.


Yeah I realise that. What I'm saying is with things that are used/eaten in 1go then it doesn't bother me. Like a packet of crisps, I eat 1 packet at a time regardless of how much is in it. Some crisps are 25g some 28g some 30g etc. If I have a pack with 25g in I'm not going to be after another 5g of crisps afterwards. I'm quite happy I've had a packet. If kit kats reduced from 4 to 3 fingers but price remained the same, yeah I'd moan about it but long term I'd be happy eating 1kit kat, I wouldn't be opening another and eating 1 finger off it.


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## justina3 (Jan 11, 2008)

Franzpan said:


> I Have no idea :lol::thumb:


well thats the only thing i could think of as well but not something i would shout out loud.


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## Franzpan (Mar 2, 2009)

justina3 said:


> well thats the only thing i could think of as well but not something i would shout out loud.


I wouldn't want to shout about it either. Maybe they drive a tractor though


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## justina3 (Jan 11, 2008)

Franzpan said:


> I wouldn't want to shout about it either. Maybe they drive a tractor though


but even then it can only be used for work purposes


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