Nrma Finds "smoking Gun" For Petrol Price Fixing

[scathing]

The NRMA has produced evidence it claims is the smoking gun over alleged price gouging and collusion within the oil industry.

Brandishing a graph comparing the price of petrol at the bowser to international crude prices over the past eight months, the NRMA's motoring and services president, Alan Evans, said yesterday that the analysis proved "beyond any shadow of a doubt" that before the Treasurer, Peter Costello, announced an inquiry into petrol pricing in June, motorists were being ripped off by millions of dollars.

"We see in the last few weeks crude prices have risen but, lo and behold, because someone is looking over their shoulder, [the oil companies] have brought the prices down," the NRMA's motoring and services president, Alan Evans, said.

Source: SMH

[tjandriesen]

A comparison between the price of crude and the pump price is not a complete comparison and is a long way from a smoking gun. Even assuming we are looking at Dubai crude (versus WTI or Brent - all crude is not equal) you also have to consider refining capacity in Asia. There is a finite capacity to refine gasoline and the price will in large part be determined by existing inventories (how much gas there is already) and refinery capacity (how quickly we can make more) versus the demand for those supplies.

I'm not making a statement that prices were or were not correct - just that it is much more complex to understand.

[joeyjoejoejuniorshabadoo]

are you telling me that the oil companies are only in this for the money?

I'M SHOCKED AND OUTRAGED!