Oil companies 'feel shame over prices'

perthnow ^ | 3/23/08 | pethnow

[Flavius]

ARROGANT oil companies realised they'd "gone too far" and allowed petrol prices to fall over the Easter long weekend, says a leading motoring group. The NRMA claims petrol prices rose between 15 and 20 cents a litre on the Thursday before the Easter long weekend, reaching an average of about $1.50 per litre.

Oil to stay below $110 a barrel: OPEC Oil to stay below $110 a barrel: OPEC Competition Policy and Consumer Affairs Minister Chris Bowen dismissed allegations that drivers were being ripped off, saying the price hikes were part of the weekly price cycle.

But motoring group NRMA disagrees, arguing that the cost at the bowser soared above the average weekly price cycle.

"We used to see the normal price cycle as being four to seven cents over the week, lately it's gone up to 10 cents but we've certainly never seen 15 to 20 cents as we saw on Thursday,'' NRMA president Alan Evans told ABC radio.

Mr Evans said the powerful oil companies reacted to the pressure they received over the rising costs and have now brought the prices down.

"I think the oil companies felt the shame and the pressure that they've got from the media for the behaviour on Thursday,'' he said.

"I think they outraged the public by the amount they increased their petrol on Thursday - you know, 15 to 20 cents right in front of people's eyes was just too much to bear.

[xjcsa]

Wasn’t my post. But yeah, there’s no such company.

[Rembrandt]

“I’ll take a new enlightened American brother of your all knowing seer, *hitty attitude any day of the week. Grow up and educate others if your so wise. I have been on this forum and have communicated with the President himself on such matters as increasing the supply and guaranteeing national survival. But do you see me skewing newly enlightened American’s? Go hide in a hole with your supreme guidance grand poohbah as responsible people regain this country and take the blows.”
—
I was wondering where those departing the Daily Kos would be posting.

[trumandogz]

Stevens proposes new plan for ANWR(February 20, 2007)

Too little, too late, something should have been done while the Republicans held the House and Senate.

The ugly truth is that we could drill ANWR, Florida and California and we will still be paying more than $90.00 a barrel for oil.

[bray]

Could it be since the price is too high less is used which brought prices down?

Pray for W and Our Freedom Fighters

[Flavius]

nuh

oil is just a convenient way to protect your falling dollar

the dollar just platoed and oil prices began to drop

they saying about 40 cents per gallon drop shortly

(thats price at pump)

[bray]

Dropped 6 cents over the weekend and is still dropping here in Oregon.

Pray for W and Our Troops

[Kickass Conservative]

Ok, let's talk profit margins, shall we?

Oil companies average a 10% to 12% profit margin on their products. If a gallon of gas sells for $2.00 before taxes are added, they make about .25 cents. The Gubmint makes about .50 cents on the same purchase made by the consumer.

Do the math when gas goes up over $4.00 per gallon. I guess we should regulate the Gubmint a little more as well.

[rottndog]

Oil companies do not set the prices for oil any more than farmers set the prices for ag commodities.

Well actually, some ag commodities are at least manipulated by the government. Subsidies have proven to be just as much a failure as price controls have always been.

[Trailerpark Badass]

We only import a fraction of the oil consumed in this country.

So you support central planning of the economy...by our government?

The only thing price controls guarantee is shortages.

Welcome to FR!

[Trailerpark Badass]

Not to be rude, but most people have no idea how heavily regulated the oil industry is.

What's so funny is that these same people push for "fair trade" deals to protect American jobs.

Yet they fail to realize that current oil prices justify domestic production that doesn't occur at cheap, 1990's level oil prices. I guess they have something against American lease holders making some money (and paying some taxes).

[combat_boots]

Tisk. Tisk.

[combat_boots]

Get a Vespa for errands close by. Or something like it.

“Ciao” (E. Izzard)

[catfish1957]

Whoa..wait a minute, I am no fan of the oil companies either, but in their defense do the math.... At $110/barrell that equates to $2.61 a gallon, just to buy the crude from mostly overseas suppliers. Add incremental costs for refining, storage, transportation and distubution. Then add another 40 to 50 cents a gallon for federal and state taxes......well you get the picture

[Conservativegreatgrandma]

What a great idea!!!

[Conservativegreatgrandma]

More common sense. Congrats!!

[Conservativegreatgrandma]

Why would oil companies be willing to invest the kind of money it will take to drill in ANWR, etc. if there were only a small amount of oil available? As long it's their private money, and not that of taxpayers, let them drill.

I believe those who claim there is no danger to the environment more than I believe those who claim there is a danger. Open ANWR.

[thackney]

How can the US regulate this?
1.) Raise the margin requirement to 100%.
or
2.) Allow only physical delivery contracts.

Oil is a global fungible commodity. After implementing the above, the future trading will just continue unchanged but no longer under any US control since it will be done in London, Tokyo, Singapore and Dubai.

[Sunnyflorida]

“Oil is a global fungible commodity. After implementing the above, the future trading will just continue unchanged but no longer under any US control since it will be done in London, Tokyo, Singapore and Dubai.”

Exactly. It is amazing how many people post on Free Republic with no idea how markets and the economy works.

The only solution to higher prices is increased supply or lower demand (good luck with that - people bitch but they still drive.)

[tx_eggman]

Exactly. It is amazing how many people post on Free Republic with no idea how markets and the economy works.

The only solution to higher prices is increased supply or lower demand (good luck with that - people bitch but they still drive.)

Agreed ... I posted my response after an afternoon/evening of March Madness ... festivities that included one too many bourbon and waters.

[iThinkBig]

I was talking to someone else who was skewering a new Freeper asking about financials and being told he was a newb and you butt in Rembrandt calling me a liberal?

I am no longer any party buddy, the government is all corrupt top to bottom whether it’s Dems and their wealth redistribution scams (old) or Republicans non-oversight of anything financial letting banks run amok (old) or doing nothing about illegal invasion (also old).

Survival of the fittest works and I have a feeling your complete stupidity with this comment to me is a reflection of who will and will not be rebuilding this teetering nation. Your type will continue stupidly calling Patriots communists while losing all assets and probably life in the process. Now onto talking with others whom have concrete ideas rather then clowns feeling their self-important to FreeRepublic.