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ExxonMobil explains pump pricing


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ExxonMobil explains pump pricing

 

WE UNDERSTAND Mr Lim Kia Cheh's concerns ('Pump prices quick to rise, slow to fall', Forum Online; Aug 13). Pump prices do not rise or fall at the same time or magnitude as crude prices because pump prices are affected by a combination of factors, of which crude prices are but one of these many factors.

 

Commodity and product prices, while linked, also have different supply and demand dynamics.

 

In addition to market competition, fuel prices are determined by a number of other factors, including wholesale fuel prices (which may be different to crude oil prices), taxes and other operating costs.

 

Some Competition Commission of Singapore staff had recently carried out an in-depth, independent study into the fuel retailing market in Singapore.

 

Part of the study included an econometric analysis on the retail petrol prices to test if the 'rocket-and-feather' (where prices rise more or faster than they fall) phenomenon exists and they found that the results do not support the existence of such a phenomenon.

 

Loh Pin Chuan

Public and Government Affairs Manager

ExxonMobil Asia Pacific

 

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Reaping profits at motorists' expense?

 

WHEN oil prices set a record of more than US$120 a barrel in 2007 and early 2008, and when the United States dollar stayed around S$1.45, motorists paid about $2 per litre for medium-grade petrol.

 

Today, global oil prices have dropped by more than 25 per cent to below US$90 a barrel, and the greenback has lost some 15 per cent of its value against the Singapore dollar.

 

Yet, motorists are still paying about the same price of nearly $2 for a litre of petrol.

 

Motorists and businesses have not benefited from the drop in oil prices and the US dollar, and this has translated into a huge profit of more than 35 per cent for all the petroleum companies in Singapore.

 

Minus inflation and other increases in costs, I venture the oil firms are still raking in an extraordinary profit of some 15 per cent to 20 per cent.

 

Shareholders and oil firm employees must be beaming, but the critical question is the lack of action on behalf of consumers.

 

What has the Consumers Association of Singapore done? Who else should take up the cause on behalf of consumers and what can be done?

Tan Ming Siang

 

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ESSO already state operating costs as one factor!!

It can be bonus, profit or anything the company wants. In times of cheap crude, they can say need to have more bonus for employees....

 

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ESSO already state operating costs as one factor!!

It can be bonus, profit or anything the company wants. In times of cheap crude, they can say need to have more bonus for employees....

They need very high revenue to give super high bonus to their employees! <_<

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In addition to market competition, fuel prices are determined by a number of other factors, including wholesale fuel prices (which may be different to crude oil prices), taxes and other operating costs.

ya right, everytime crude price goes up, pump price also goes up almost immediately,and now said wholesale fuel price IS ONLY ONE OF THE FACTORS? Do petrol companies know data such as quick increment after crude price went up can easily be culled fron overt sources? Who are they bluffing?

Edited by Latio2005A
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We are still screwed by them after all!

No amount of explanations and reasons will helps to lower down the petrol prices.... <_<[knife]

 

Committees

Are

Sleeping

Eunuchs

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E "reasons" are always in their favour and ultimately its demand tat allows dem to do so. I wonder if one day, supplies are so bad tat there is a rationing and queues of vehicles will form at petrol stations daily......will consumers still pump at sky-rocket prices then? Dey will of cos kpkb since its a singaporean's "instinct" to complain in both gd and bad times.

 

Me wish tat cars can run on water...on second tots better not cos some countries already experiencing great lack of it....perhaps on solar + moonal power tat is unlimited and free....den all petroleum coys can eat grass....fat hope, I know.

 

 

Cheers

 

 

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ESSO already state operating costs as one factor!!

It can be bonus, profit or anything the company wants. In times of cheap crude, they can say need to have more bonus for employees....

 

Can't be that ALL petrol companies pay the SAME wages, bonuses, etc, right? If not, how to explain EVERY single one of them charge the SAME fuel prices (with the exception of V-power)?

Edited by Philiptan86
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Come on lah. Our cars run on one thing and one thing only which is petrol. Asking such a dumb question give them the chance to say,"WE OWN YOUR ASS....Muhahahahaha!". Wake up and smell the coffee already.

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E "reasons" are always in their favour and ultimately its demand tat allows dem to do so. I wonder if one day, supplies are so bad tat there is a rationing and queues of vehicles will form at petrol stations daily......will consumers still pump at sky-rocket prices then? Dey will of cos kpkb since its a singaporean's "instinct" to complain in both gd and bad times.

 

Me wish tat cars can run on water...on second tots better not cos some countries already experiencing great lack of it....perhaps on solar + moonal power tat is unlimited and free....den all petroleum coys can eat grass....fat hope, I know.

 

 

Cheers

 

 

car can run on water... and its proven in 1930-40 in US...and ability to squeeze more miles per gallon during that times but shell 'bought' the idea... probably patent it... and only 1-2 cars are produced by the inventor...

 

i watched the documentary and something deal with compression....

 

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