The People's Forum
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Ok thanks nt
Their raw material price was set based on the spot prices in march - usually averaged over the month, so not as high as $139 (we havenít sold any cargoes at as high a price as that). For the refinery selling gasoline its costs are whatever they paid for the crude, usually set two to three months earlier. They should reflect todayís lower prices in gasoline sold two to three months from now.
It has dropped 20% from that peak yet the prices are on the rise again sorry that doesnít explain these prices
The oil we sell this month is for a price fixed in March, based on the March spot price, when it was first sold (there are multiple transactions after the first sale but the producer gets the first price when the cargo is originally loaded). The cargo then needs to get to a refinery which takes X weeks depending on the destination. So thereís a considerable lag between the the spot price and when the refined product gets to market.
The oil price was $139 a barrel in March and it is now $104 yet the fuel prices are higher now than they were in March any economists out there to explain this?!
And why isnít this being discussed in the media!