I read the recent Straits Times article about the pump prices with great amusement. Basically, the crude oil prices have gone down but the price of petrol still remains high. Furthermore, the US dollar has weaken against the Singapore dollar. So basically, the petrol prices should go down. But it didn’t.
Here are some of the interesting responses.
Shell, which made US$31 billion (S$44 billion) last year, said contributing factors include ‘international political volatility’, and duties and taxes.
Right, tell me that when you increase the petrol prices due to higher crude oil prices.
SPC, which made $508 million last year, said: ‘There is usually a lag between oil price movement and pump price adjustment.’
It seems to me that the lag only applies when the price needs to be adjusted downwards. I don’t remember much lag when they are adjusting upwards.
Chevron, which made US$18.7 billion last year and which markets the Caltex brand of fuels here, said it also monitors competitors’ reactions to market forces before deciding to move prices.
Good move. So where is the competition? It’s like a monopoly now.
ExxonMobil, which made US$40.6 billion last year – the highest profit for any firm in history – echoed some of the reasons cited by its rivals.
Wow… US$40.6 billion profits?
Case’s Mr Seah said the association wrote to oil firms last month raising the issue of unyielding pump prices, but it has yet to receive a response.
Good move by the oil firms. Next time, if any company got letters from CASE, just ignore those useless fellow. They can’t do anything if you don’t reply them.
Mr Ong, the oil consultant, said the industry might soon have another excuse to raise crude prices. Venezuela has stopped selling oil to ExxonMobil in response to the US company’s move to use the courts to seize billions of dollars in Venezuelan assets.
Oh great…. We are going to be screwed again.