Oil prices tumble

Have read tonight that Supermarkets are slashing petrol and diesel prices by three pence per litre as world oil costs tumble.

Wonder if there's the slightest chance of a reduction in the massive fuel surcharges which the airlines are charging. Let's face it, once there's talk about the cost of a barrel of oil rising, then the fuel surchages get hiked almost immediately.

Never works the other way round does it !

[Darren Wheeler]

I'd rather the cost at the forecourt came down. Far outweighs any fuel surcharge.

Not a hope in hell will they lower prices they will just say we bought in bulk and we are paying for what they have in storage

Only because a number of consuming nations are releasing from their strategic reserves and not because of drop in demand or increase in market supply...if I were a business dependent upon oil prices I wouldn't be betting on this trend lasting.

[honey lamb]

Don't VS hedge the oil prices for about 6 months in which case that price will be fixed? Maybe when the next lot of hedging comes up, that might affect the surcharges

*now sits back and waits for a more erudite post on hedging by someone who knows a lot more about it than me*

Don't VS hedge the oil prices for about 6 months in which case that price will be fixed? Maybe when the next lot of hedging comes up, that might affect the surcharges

*now sits back and waits for a more erudite post on hedging by someone who knows a lot more about it than me*

Thats correct - they buy in bulk to fix the price for a particular period.

It means that if the price goes up further they still pay the same (and fares don't go up) but if they go down they don't get the benefit of that (and neither do we).

Would people be happy with a ticket price going up and down depending on the spot rate that day?

One week drop only. Jet Fuel Price
Index: 351.9 (based on 100 in 2000)
$ /barrel: 128.7
Cents/gal: 306.5
$/mt: 1014.5
-4.1% drop since last week
0.9% Rise since last month
40.5% Rise in last year.

Edit to add:
Of the 4.1% drop we have to subtract 3.3% drop in value of £ - fuel is priced in $
So real drop in last week was only 0.8% ....not a tumble - hardly even a little trip

More likely to see an increase due to the longer term trends

^ I agree, this is more likely to be the intense competition and price-battling between supermarkets and loss-leading to generate footfall.

And now Sainsburys about to start offering 10p/litre off when you spend £60.