OFT Investigating Oil Industry - are we being ripped off?

Discussion in 'The Intelligence Cell' started by TheresaMay, Sep 6, 2012.

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  1. TheresaMay

    TheresaMay LE Moderator DirtyBAT

    Simple answer - most likely.

    BBC News - Petrol and diesel price review is launched by OFT

    The OFT are investigating the Oil Industry amid reports that price drops of crude oil are not being passed on to customers at the pump; results of which are expected to be published in January.

    Nothing new there - and along a similar line to the mortgage companies that were not passing on the full benefit to customers when the BOE lowered their base rates several times a few years ago. But if found guilty, they could face fines of millions of pounds.

    So if fined - who is the 'fine money' paid to? The government? I'd like to think that whatever the companies were fined would simply be deducted from the prices they charge at the pumps. That way Joe Public would get the benefit (seeing as it's us they've short-changed). After all, the money the oil companies would lose is irrelavent to who they lose it to.
     
  2. It should be a world wide review, which, it cant be but it's the same all over, fuel prices go up a damn site quicker than they come down. Dont forget the Tax element in your fuel price, the provider (BP/Shell/ etc) may whack a penny on the price but the Govt may whack another two on top.

    Dont get your hopes up, petrol/diesel is a cash cow for Govt's the world over. Nowt's going to be changing anytime soon.
     
  3. It has taken a long time in coming. Also, I suspect that the oil industry will have a few lunches with the investigators and take them on trips to see where oil comes from and the result will be that things are not as simple as we all think and oil companies are really good eggs. So it will be whitewash to appease us. If they are successful in finding that we are being well screwed perhaps they will look at gas and electricity next - couldn't expect them to do it at the same time.
     
  4. Six weeks to establish that The Government are taking 65% from all fuel sold at the pumps?
    Cnuts.
     
  5. It's easy to have a pop at the oil industry but you should direct your angst towards the government in the first instance. The enquiry will be limited to the UK I suspect. All but one oil major has sold off their refining capability to other companies who now buy their crude at market rates so just how will pointing the finger at 'the oil companies' and blaming them make any difference what so ever.
    it looks to me like a smoke screen by the government to appease the general publics complaints of high fuel costs.

    I like to use the bottle of Evian argument when discussing fuel prices. People (stupid ones, granted) will happily part with £2 for a litre of tap water dressed up that has gone through almost no process to get to your table. Contrast that with a litre of petrol that has been sucked out of the ground in Nigeria, transported thousands of miles, treated with all kinds of expensive chemicals and complicated processes, all the toxins removed and disposed of then transported to your forecourt.

    Bargain!
     
    • Like Like x 1
  6. TheresaMay

    TheresaMay LE Moderator DirtyBAT

    The Evian argument...

    It's basically 'Naive' backwards. Argument over :)
     
    • Like Like x 2
  7. Hold on there 'JR'. Your 'Evian' argument holds no water (see what I did there?) and suggests that people are stupid for paying the current forecourt prices, which is rather unfair. Those who choose to spend their money on over dressed tap water do so through choice. The motorist has no choice, beyond pay up or walk to work. The motorist will always pay. They have to. Their whole way of life and that of their families rests upon them. No car, no work, no money. It's as easy as that in most cases.

    I have no in depth knowledge of the oil industry, but let's be honest here, they're not doing anything for our benefit now are they? I agree that this Government will shut its mouth and allow the blame to be directed elsewhere as it has plenty of previous in that department. They are each as bad as the other, but we will continue to pay at the pump. Too much of us are dependant upon doing so. We are a captive audience and both the Oil Industry and the Government know it.
     
  8. I think he was making the point that people whinge about buying petrol, when they will happily spend more on a bottle of water.

    Apart from finding the oil & gas, extracting it, transporting it, refining it and selling it so that you can drive your car and have products made of plastic, and fly to another country on holiday etc.

    Edited to add a cut and paste:


    [h=3]Products Made From Oil[/h]

    [TABLE="width: 100%"]


    [TR]

    [TD]
    Clothing Ink
    Heart Valves

    Crayons
    Parachutes
    Telephones
    Enamel
    Transparent
    tape
    Antiseptics
    Vacuum bottles
    Deodorant
    Pantyhose
    Rubbing
    Alcohol
    Carpets
    Epoxy paint
    Oil filters
    Upholstery
    Hearing
    Aids
    Car sound insulation
    Cassettes
    Motorcycle
    helmets
    Pillows
    Shower doors
    Shoes
    Refrigerator linings

    Electrical tape
    Safety glass
    Awnings
    Salad bowl
    Rubber
    cement
    Nylon rope
    Ice buckets
    Fertilizers
    Hair coloring
    Toilet
    seats
    Denture adhesive
    Loudspeakers
    Movie film
    Fishing
    boots
    Candles
    Water pipes
    Car enamel
    Shower curtains
    Credit
    cards
    Aspirin
    Golf balls
    Detergents
    Sunglasses
    Glue
    Fishing
    rods
    Linoleum
    Plastic wood
    Soft contact lenses
    Trash bags
    Hand
    lotion
    Shampoo
    Shaving cream
    Footballs
    Paint brushes
    Balloons

    Fan belts
    Umbrellas
    Paint Rollers
    Luggage
    Antifreeze


    [/TD]

    [TD]
    Model cars
    Floor wax
    Sports car bodies
    Tires
    Dishwashing liquids

    Unbreakable dishes
    Toothbrushes
    Toothpaste
    Combs
    Tents
    Hair
    curlers
    Lipstick
    Ice cube trays
    Electric blankets
    Tennis
    rackets
    Drinking cups
    House paint
    Rollerskates wheels
    Guitar
    strings
    Ammonia
    Eyeglasses
    Ice chests
    Life jackets
    TV
    cabinets
    Car battery cases
    Insect repellent
    Refrigerants
    Typewriter
    ribbons
    Cold cream
    Glycerin
    Plywood
    adhesive
    Cameras
    Anesthetics
    Artificial turf
    Artificial
    Limbs
    Bandages
    Dentures
    Mops
    Beach Umbrellas
    Ballpoint
    pens
    Boats
    Nail polish
    Golf bags
    Caulking
    Tape
    recorders
    Curtains
    Vitamin capsules

    Dashboards
    Putty
    Percolators
    Skis
    Insecticides
    Fishing
    lures
    Perfumes
    Shoe polish
    Petroleum jelly
    Faucet washers
    Food
    preservatives
    Antihistamines
    Cortisone
    Dyes
    LP
    records
    Solvents
    Roofing
    [/TD]
    [/TR]
    [/TABLE]
     
  9. I don't think the companies involved in the manufacture of any of those products do it for my benefit, they do it to make money, in much the same way as newspapers are printed to make money. No problems with that, the only sticking point is the profit margins involved.

    Citroen stopped people going to France to get their wagons serviced at authorised Citroen dealers, by stating that unless done by UK dealers the warranty would be invalidated; it was, and may still be, cheaper to take a day trip to a French port, get the wagon done, go shopping, and eat out, than go to a local dealer.
     
  10. I want cheap petrol at the pumps. Not rollerskate wheels or Faucet washers. But thanks for showing me your in-depth knowledge of the oil industry. I'll sleep like ******* log tonight.
     
  11. Doing it for money? Strange how that appears absent from his list? Are you sure that you wouldn't benefit from a new set of roller skate wheels?
     
  12. Don't anticipate a grand expose, after all, these politicos will need to consider their post political career in getting on the company boards they have 'assisted' en route.
     
  13. Which may break EU law somewhere, Competition law perhaps, restriction of trade.
     
  14. The list is just a sample. Polymer banknotes could indeed be included.
     
  15. Fully agreed. The difficulty is that one can't just say 'it's the oil companies'. An upstream company will sell at the market rate. Traders will usually buy speculatively - i.e. buy oil at todays price and take delivery some months later when the price may be different. How they sell will be similarly affected by market forces.

    Finding and producing oil is fantastically expensive, especially offshore. Man fields are now marginal and require further expenditure just to keep production levels at the same rate, let alone increasing them. Just look at what happenned when the government in its wisdom increased taxes in the North Sea - they shut down because they were unsustainable. Yes, oil companies want a profit - what kind of company does not? But they also need huge revenue to sustain production.