Price is whatever value people are prepared to pay. There is no morality or ethics involved except if there is a monopoly of supply or the collusion of a cartel. (And Saudi Arabia and OPEC and the oil majors are no strangers to cartels). There is no inherent reason – other than competition – for price to the consumer to follow the cost to the producer.
Following the recent drop of oil prices, the benefits to the consumer (petrol price to motorist) varies greatly between countries. The US motorist has seen the greatest benefit. India is not far behind. But the Swedish motorist has seen relatively little of the benefit.
I take 95 octane petrol/gasoline and January 2014 as the reference point.
Crude oil price 2014
petrol prices at the pump
I wonder why?
Tags: Petrol price
The k2p blog 