Thursday, January 14, 2016

why aren't petrol pump prices coming down?

Petrol litre prices used to match the price per barrel of oil.
So if a barrel was 60USD then the pump price was about 65p per litre.
When it went up to 125 USD then the price was 120 p per litre.
Today it's under 32 USD per barrel and still at 99-104 p per litre.
So either it's due to taxation, the oil companies ripping us off, or both!!
Expectations is for Oil to go to 10 USD a barrel. that will leave a litre of oil at 95p!!!
159 litres - 279 litres in a barrel of oil = so 159-280 pounds per barrel. In Saudi the cost to get a barrel  out of the ground is 22 STG approx.

What does this mean?
1. A war in the Middle East to stem the fall and create a shortage.
2, The house of Saud collapses, as the economy collapses
3. Ultimately, the petrol price will rise faster from a very high level. On a recovery expect about 2 STG per litre for sure.
4. If this happens, alternative energy will start to rule and the oil companies will lose their huge revenue base.

What will we see?

  • Cars running on hydrogen
  • Cars in India can already run on compressed air
  • Of course electric cars becoming more efficient and can drive more than 200 miles, before needing a charge

No comments:

Post a Comment