October 27, 2008

Fuel prices now lower than a year ago

A headline like this would normally be the cause for some celebration, not only from motorists but also from householders because of the costs of energy. However, despite the price of a barrel of oil dropping to a price that is lower than it was last year.

Nevertheless, as with many things, the price has remained same or in the case of fuel, the price of a litre of petrol has fallen but only slightly. This has meant that despite the wholesale prices falling the retail price is not showing the reflection of good fortune.

As it was on the way up, prices increased fast, which fuelled complaints that the petrol and energy companies were cashing in, it would seem that it is the same as the prices fall.

Retailers will say that they are still using fuel at the old prices that they had to pay, which is probably true, but it seems that the consumer who is always the one who ends up footing the bill.

Source [Daily Fuel Economy Tip]