[KongoSan]

It is simply supply and demand, we are past peak oil production and nowhere near peak oil demand. China and India (+others) are expanding rapidly sp demand continues to rise.

Problems in ME and Nigeria are slowing production in the short term, long term the world is running out of oil. As the price of oil increases, other forms of fuel become economic (Bio Fuel) which uses large tracts of farmland. The demand on farmland for fuel cause less to be used for food and so food supply goes down and the price goes up causing widespread starvation.

We are living in the last years of the carbon golden age, I intend to have fun while I can.

[adverwork]

Prices just went up again. Why…? Anyone knows the economics here and care to explain?

Because people buy it, if people stopped buying you can bet that prices would fall.

David

[Les Allen]

Sorry... on behalf of India...LOLz

Of course, there are many views here. The people who already consume a lot of gas are also in a position to contribute. They cannot take it as a right. So, is one view.

In the end its a joint responsibility, which everyone has to own up. But I think its going to be hard. Because at one end, if you tell anything to India and China we take on the complex of being a 'victim' and we take little responsibility on adopting more efficient means. And if you say anything to a country like US, it seems you are attacking their way of life?

Carbon footprints, fuel and more is going to follow and I guess we are all going to be in it !!!

[LesLattis]

> The people who already consume a lot of gas are also in a position to contribute. They cannot take it as a right.

personally, I would contribute willingly to increasing fuel prices if the profits were used to develop alternative resources. or, I would willingly pay a lot more for food if I knew it was helping poor families keep their means of living. but this just doesn't seem to be the case. someone's getting filthy rich with the profits they are getting off normal or poor people and THAT annoys me to bits.

[PetraCromlich]

you want you pay its as simple as that.

[Uplillacype]

This market mechanism is getting more complicated, besides demand and supply I would think of "manipulation/speculation" as one major factor of this hike too.

[HexcewlyRette]

This market mechanism is getting more complicated, besides demand and supply I would think of "manipulation/speculation" as one major factor of this hike too.

And it's easy to speculate on the future price considering the pattern that has been established, as much as I would like to see the speculators lose their butts, the chances of that happening seems very slim at this point.

[themsrsdude]

This market mechanism is getting more complicated, besides demand and supply I would think of "manipulation/speculation" as one major factor of this hike too.

In my country we have like what? 4-5 large oilcompanies who charge the exact same price per liter down to the last satang and they always adjust the price the exact same day

[18holesin]

In my country we have like what? 4-5 large oilcompanies who charge the exact same price per liter down to the last satang and they always adjust the price the exact same day

In the UK that would be illegal-but that is not to say it does not happpen...

[themsrsdude]

In the UK that would be illegal-but that is not to say it does not happpen...

Its illegal to do that in Sweden too, having some kind of cartell.

... so it happens just by a coincidence

[occafeVes]

I hope this helps a bit from OZ
Fuel: The Mass Debate
Or How to Knock About 50c a Litre Off the Price Of Fuel
First and foremost this debate should be centred on Diesel NOT Unleaded. Why? You may ask. Just look at the increase in supermarket prices for your answer. While it may cost you $5 or $10 extra to fill your tank everything that is transported (which is everything) rises as Diesel rises. My average basket at the supermarket per week has increased on average $30 and that’s for one person. Australia’s whole economy is tied to Diesel and therefore it should be afforded the same priority and status as water i.e. an essential commodity.
I own a small transport company and I have had to significantly raise my prices twice in the past year just to maintain profit margins. This cost you money too.
I am compelled to write this letter because I am sick of all the namby-pamby pussyfooting around everyone seems to be doing about the current fuel debate. I have spent considerable time researching this area because it affects my income. Contained herein is the WHOLE truth about the debate, the WHOLE big picture, if you will. NO-ONE till now has had the testicular fortitude to stick their necks out and present the WHOLE argument about just how much we are being RIPPED OFF. If you want the truth and the WHOLE truth read on.
DON’T – Listen to spin doctors from the oil companies. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – Listen to the government – state or federal. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – pay too much attention to news or current affairs programs. THEY HAVE THEIR OWN AGENDAS.
So here we go, how to make fuel cheaper!
FIRSTLY – DISBAND FUEL PARITY
Parity, for those that don’t know, is government sanctioned price fixing (simple as that). Parity allows fuel companies to sell their products for the highest current price they find in the Asia Pacific region. It completely disregards supply and demand economics and eliminates any need for competition amongst themselves.
Don’t believe me? Just look at the price of Diesel. If you remember growing up when Diesel was always 10-15c p/l cheaper than Petrol you might understand this more.
How can a product that costs far less to produce (partially a by-product of producing Unleaded as well) and a product that Australia uses more of than any other fuel be MORE EXPENSIVE than Unleaded? Simple, ring Singapore, where they don’t use a lot of Diesel and import all their fuel, find out how much it’s selling for there and charge the same here – sound fair? NOT!
Any other industry who tried this one would be hauled of to the High Court quick smart and prosecuted for price fixing! Oh but hang on, our government ALLOWS them to do this
NUMBER TWO – BARRELL PRICE
That price the news loves to show us each night is the PREMIUM GRADE crude oil price. Australian oil companies DO NOT buy PREMIUM GRADE crude oil! In fact Australia produces around 70% of its own oil and imports about 30%. The cost of production per litre produced here is cheaper than that of imported fuel, but in no way is this factored into the pump price, because they don’t need to (SEE PARITY ABOVE) we pay a pump price based on PREMIUM GRADE crude oil price the same as if we imported all of it, say somewhere like Singapore! Starting to get the picture?
NUMBER THREE – LEVIES
Everyone knows that both State and Federal Governments take a large slice of the cost of a litre of fuel. This equates in total to about 46% of the price per litre. This money is used for infrastructure, road trauma etc. etc. so fair enough right? WRONG!
What is wrong is that it is a PERCENATGE! Look at this. If a litre of fuel costs $1.00 then the Government gets 46c p/l, right? A week later fuel rises to $1.10 p/l; the Government gets 50.6c p/l, bingo! Something tells me that in one week, their costs, IN NO WAY have gone up 9%!
As I stated previously – THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY! Why else do they allow fuel companies to maintain PARITY?
If they changed the tax (sorry, levy) to a flat rate tied to the GDP then the fuel price would drop drastically and immediately!
NUMBER FOUR – GST - THE DOUBLE DIPP
Now this one is outright “THIEVERY” and also applies to cigarettes and alcohol.
GST = Goods and Services Tax, correct?
46% or 46c in every dollar in the price of a litre of fuel is TAX (sorry; again, LEVY).
What part of LEVY is a good or a service? YOU CANNOT TAX, TAX RIGHT? WRONG!
You do the math.
Say fuel costs $1.00 p/l – the GST component = 9c
But hang on a minute 46% or 46c of this is TAX!
i.e., 4.14c of the GST is ILLEGALLY CHARGED ON THE TAX COMPONENT! Not much you say?
FOR EVERY LITRE SOLD IN AUSTRALIA EVERY DAY!
That equates to millions of free dollars for the Government! I’ll say it one more time - THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY!
The GST on fuel should be 5.4% not 10%. At $1.75 p/l this would drop the current price by around 8c p/l.
Feeling a little annoyed? You should be!
Even without disbanding parity and introducing real competition among fuel companies, you should be paying about 40c less per litre!
I happily welcome anyone, Government and fuel companies included to prove me wrong.
If you feel strongly about this issue then pass this missive on to everyone in your address book. Eventually someone might take notice.

[n2Oddw8P]

I was just reading an article in Time about one of the biggest oil stock speculators here in the U.S., who has made about 2 billion dollars over the last decade from his oil stocks. He just sold all his oil stocks because he is guessing the oil "bubble" is about to burst.

Let's hope he's right!

DogoDon

[DexOnenlyCymn]

check this out

http://tobefree.wordpress.com/2008/0...-field-alaska/

[HexcewlyRette]

I think your economic issue isn't going down hell cuz the oil stuff is helping ya? lol And, like i said I was not blaming anybody. I was just givng out my opinion as an outsider since i'm not an american.

Thuggie,
Are you sure Thailand buys oil from the USA? I know it's possible that oil may be traded and paid for in US$ on many world markets. Granted the USA is a large oil producer, but we consume and import twice as much as we produce. The only economies that will benefit from the high oil prices are countries that produce more than they consume.
No, the oil stuff isn't helping me or the USA.

[18holesin]

Commodity dealers also play around with the world price. One a few weeks back in America bought oil at $100 a barrel so he could say he was the first dealer to do so. I believe he sold the oil on at $98 a barrel.

[themsrsdude]

Another thought is the oilproducers.

As long as the price continues to rise or stay high they want to sell as much as possible, however they dont want to overproduce to keep the demand up.

[ådrrraj]

I think your economic issue isn't going down hell cuz the oil stuff is helping ya? lol And, like i said I was not blaming anybody. I was just givng out my opinion as an outsider since i'm not an american.

[Uplillacype]

Oil price movement in Thailand is in the same direction as world oil prices which the market mechanism based on production and some other factors such as speculation, consumption, exchange rates, situation in oil-exporting countries, etc.

Due to my work, I closely watched on NYMEX (New York Mercantile Exchange) crude oil futures in 2004, skyrocking oil prices due to vast speculation from hedge funds and strong global demand. Thai government implemented diesel price subsidy in early 2004 for hoping to maintain the economic growth, but this policy created a huge burden to the government’s state oil fund from the gap between the real diesel price and the subsidized price, thus this policy was ended a year later.

Retail oil prices in Thailand: Bangkok – lowest in the country as Bangkok is the main distribution center. Provincial areas – Bangkok price + transport cost.

Retail oil price structure in Thailand: Refinery price + Tax and Oil Fund + Market Margin.

We import crude oil > refinery process > refined oil products. Refinery price accounts for 60-70% of this price structure, changes in domestic retail prices heavily relied on the movement of world market prices.

Singapore is the regional oil trading center where reflects the real demand and supply in this region.

Soaring oil prices has significant impact on the automotive industry during the past few years, higher demand in eco-cars and fuel-efficient engines. As long as we still have poor public transportation, we will always see red-license plate car on the roads.

[DexOnenlyCymn]

Gasoline is a prime extract from Crude and everyone wants it so the price can be anything they want and people will still buy it.
Everyone stop buying gasoline for awhile and let supplys stack up to where they have trouble finding a place to put it and watch the price fall to 5 baht per liter.

[HexcewlyRette]

We just cannot directly buy oil from those countries that produce it. I think the biggest oil stock market is in America. Fairly speaking, im not blaming anybody since America is getting their people to buy oil as expensive as we do from them. Oil business is one of the only few ways that make alot of money for the us during this time of economic crisis there, i think.

I don't really think the US is making a killing in the oil business with the exception of traders and speculators, which not many of us are. If we were, our economy would be booming and the dollar would be rising among world currencies, which is certainly not the case. In fact, as the largest oil consuming nation, it hurts our economy more than it does most others.