Rising fuel prices
07-15-2005, 06:23 AM
#1
"Beng Your Ride"
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Rising fuel prices
Is there a Diesel version of the rx8 ??
http://www.shell.com/home/Framework?...ange_0714.html
Less rounding and less century runs.... sigh
http://www.shell.com/home/Framework?...ange_0714.html
Less rounding and less century runs.... sigh
07-15-2005, 09:11 AM
#2
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A litre of 98 Octane petrol now is about 1.69 or so if i remembered correctly. When i first started driving almost 8 years ago, it was $1.10 (plus / minus - around that figure, i fill my tank alot, some joker even said i pump more often than i eat)
Ok, so crude oil prices have gone up so naturally petrol price should go up too right? Half-right. When crude goes up, petrol goes up but when crude goes down, petrol prices stay.
What happens here is that petroleum company's increase prices when crude goes up but they initially give a bigger discount so to shut consumer's mouth. After discount you may still pay a few cents more per litre than before the increase in price and discount. After a few days of so called 'price-slashing / discount giving', they withdraw the discounts or reduce it so in the end the consumers will pay a higher pump price.
Conversely, when crude prices goes south, the petroleum companies give excuses not to reduce prices or at most reduce a few miserable cents. And at the same time they remove or lower the discounts so actual price paid is either still the same or even higher.
Some common excuses: "Our company have been absorbing crude price increase as we only increase pump prices by a little (???) and now our pump price remains to re-coup our losses" or "The time lag from the crude oil price to the pump is 2 - 3 months and we can only lower the pump price later on" (Yeah, right, they only hold out further and instantanously increase pump price when crude moves a little upwards)
No denying that they are just protecting their shareholders interests and making money. But they really treat us consumers like suckers. And even so, most of us keep quiet or maybe some of us still believe we are getting a good deal.
If such practices happen elsewhere in the world, there will be massive outrage and lawsuits flying. When i was in Australia, where petrol rose from average 89 cents to about 95 cents a litre; people wrote to the newspaper and mayor to complain and the government made a inquiry whether there was price-fixing. Later when i went to the States, people took to the streets when petrol prices rose. (as a note, the US governement has a number of measures to prevent monopolistic practices or price-fixing of most trades, such practices are considered serious offences and involve insanely obscene amounts of fine and compensation)
When our local 'popular' newspaper made a big hooha about a 'massive' 26% discount; they reported that the companies are making a daily lost of $200,000 a day based on simple calculations. I doubt so...
They calculated petrol costs based on crude oil prices less taxes. I hope i remembered correctly that from crude oil you fractionally distill it to many fractions such as bitumen, LPG, kerosense, etc. So its actually wrong to say the companies are making a loss based on simple calculations based on crude prices. The petrol prices calculated this way is not a exact representation of true price.
Logically speaking, i do not believe the petroleum companies giving 26% discounts will make a loss just to increase market presence and market share. They will never make any decisions that will incur them any loss at all; simple business sense. Furthermore, the fuel market in Singapore is relatively static as it is somewhat controlled by the government and restricted by Singapore's small market. Simply speaking, how many petrol stations they can build on this tiny island?
I cannot believe why we allow such things to happen when we are supposedly a developed nation. These kind of things only happen in 3rd world countries.
Maybe we Singaporeans are not united enough or sensible enough to properly protect our rights. Yes, there is a limit to what we can do but there is also a minimum what we must do.
Then again, vocal rights are not what we are reknown for; this is already a Fine city as it is. (Pun not intented but other intrpretations are entirely at reader's discretion)
Ok, so crude oil prices have gone up so naturally petrol price should go up too right? Half-right. When crude goes up, petrol goes up but when crude goes down, petrol prices stay.
What happens here is that petroleum company's increase prices when crude goes up but they initially give a bigger discount so to shut consumer's mouth. After discount you may still pay a few cents more per litre than before the increase in price and discount. After a few days of so called 'price-slashing / discount giving', they withdraw the discounts or reduce it so in the end the consumers will pay a higher pump price.
Conversely, when crude prices goes south, the petroleum companies give excuses not to reduce prices or at most reduce a few miserable cents. And at the same time they remove or lower the discounts so actual price paid is either still the same or even higher.
Some common excuses: "Our company have been absorbing crude price increase as we only increase pump prices by a little (???) and now our pump price remains to re-coup our losses" or "The time lag from the crude oil price to the pump is 2 - 3 months and we can only lower the pump price later on" (Yeah, right, they only hold out further and instantanously increase pump price when crude moves a little upwards)
No denying that they are just protecting their shareholders interests and making money. But they really treat us consumers like suckers. And even so, most of us keep quiet or maybe some of us still believe we are getting a good deal.
If such practices happen elsewhere in the world, there will be massive outrage and lawsuits flying. When i was in Australia, where petrol rose from average 89 cents to about 95 cents a litre; people wrote to the newspaper and mayor to complain and the government made a inquiry whether there was price-fixing. Later when i went to the States, people took to the streets when petrol prices rose. (as a note, the US governement has a number of measures to prevent monopolistic practices or price-fixing of most trades, such practices are considered serious offences and involve insanely obscene amounts of fine and compensation)
When our local 'popular' newspaper made a big hooha about a 'massive' 26% discount; they reported that the companies are making a daily lost of $200,000 a day based on simple calculations. I doubt so...
They calculated petrol costs based on crude oil prices less taxes. I hope i remembered correctly that from crude oil you fractionally distill it to many fractions such as bitumen, LPG, kerosense, etc. So its actually wrong to say the companies are making a loss based on simple calculations based on crude prices. The petrol prices calculated this way is not a exact representation of true price.
Logically speaking, i do not believe the petroleum companies giving 26% discounts will make a loss just to increase market presence and market share. They will never make any decisions that will incur them any loss at all; simple business sense. Furthermore, the fuel market in Singapore is relatively static as it is somewhat controlled by the government and restricted by Singapore's small market. Simply speaking, how many petrol stations they can build on this tiny island?
I cannot believe why we allow such things to happen when we are supposedly a developed nation. These kind of things only happen in 3rd world countries.
Maybe we Singaporeans are not united enough or sensible enough to properly protect our rights. Yes, there is a limit to what we can do but there is also a minimum what we must do.
Then again, vocal rights are not what we are reknown for; this is already a Fine city as it is. (Pun not intented but other intrpretations are entirely at reader's discretion)
07-15-2005, 09:14 AM
#3
"Beng Your Ride"
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98 octane is now 1.7570
When I started driving 17 years ago.. I remembered driving up to the pump and putting in 5 bucks to 10 bucks of fuel for a night of rounding (not there was any place to round then). ha ha ha sigh.. gone are the days.. double sigh.
I heard the shortage was not so much at source but could be at the refinery side not able to meet demands. Yet to confirm this.
Oh yes... I also agree to your statements... there is some truth
Want to do a NKF style petition ??
When I started driving 17 years ago.. I remembered driving up to the pump and putting in 5 bucks to 10 bucks of fuel for a night of rounding (not there was any place to round then). ha ha ha sigh.. gone are the days.. double sigh.
I heard the shortage was not so much at source but could be at the refinery side not able to meet demands. Yet to confirm this.
Oh yes... I also agree to your statements... there is some truth
Want to do a NKF style petition ??
Last edited by lohsk; 07-15-2005 at 11:23 PM.
07-15-2005, 10:29 AM
#4
aka Spectre
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There are too many wrongs to write petitions. No choice but live with and be a sucker without a voice.
A so called developed country with a 3rd world system and mentality.
Maybe i should travel less... see less.. and think lesser...
A so called developed country with a 3rd world system and mentality.
Maybe i should travel less... see less.. and think lesser...
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