Friday, December 26, 2014

Oil: why pump prices fall less quickly than the … – The Obs

Oil: why pump prices fall less quickly than the … – The Obs

Who benefits from lower oil prices? Not only to the consumer, if one believes a study of National Consumer Association and users CLCV revealed by “Le Parisien” Thursday, December 26.

“In a context of strong price decline barrel, CLCV alert to the fact that the distribution margins on unleaded gasoline and heating oil are rising again for three weeks and reach levels too high. “

A incompressible shift

The calculation seems simple. Since June, a barrel of crude from the North Sea has lost 50% of its value. It went from 115 dollars to 60 dollars. While over the same period, the price at the pump has fallen by 17% per liter of diesel being passed from 1.35 to 1.15.

But in reality, it is normal that the oil drop is not reflected exactly in the same proportion to the price at the pump. Because only a third of the price of the fuel depends on the price of crude oil. The rest comes from taxes, which do not fall – on the contrary -. And the exchange rate of the euro against the dollar

In addition, there is always a gap between the lower price of the raw material and the final product, with crude is extracted, transported, refined, transported back and distributed.

Margins up

However, the estimated CLCV this inexorable shift does not fully explain the difference between the 50% decline in oil prices and 17% of the pump price. The association has looked closely at the statements of General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF), which monitors a range of stations. With the exception of diesel, motor fuel margins now increase unreasonably.



For gasoline, denounced the association, the margin was 9.4 cents per liter on average over the 2014 and 10.8 cents per liter in November. It increased to 12.3 cents per liter the first week of December, 12.8 cents per liter in the second week and 12.4 cents per liter in the third week. “

Same principle for heating oil “The margin was 12 cents per liter on average in 2014 and cents per liter in November,” notes CLCV It increased to 14 cents per liter the first week of December, 14.7 cents the second week. 15.1 cents the third week.

Who Wins, Who Loses?

The distributors take advantage of lower prices to pay more. The whole production line is adjusted. And it is the final consumer finance In part, this increase in margin is not necessarily illegitimate because it can offset periods. – a little. – less profitable for oil This is the case particularly on refining . But for a second, it’s pure profit at the expense of the consumer.

CLCV so called fuel distributors “to redress the bar very quickly and to respect their commitment not to practice excessive distribution margins. ” Especially since this sharp increase margin comes just after the meeting organized by François Hollande December 7 between consumer associations and distributors, after which CLCV stressed that gasoline margins in particular rose sharply without this unreasonable.

Donald Hebert

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