Sunday, May 8, 2011

Oil Price v Petrol Price

I readily admit that Mathematics was neither my favourite subject at school nor was it my best subject but, try as I might, I fail to understand the correlation between oil prices and petrol (gas) prices.

On Friday, the price of unleaded fuel at my local petrol station jumped from $1.359 to $1.529 per litre. Yet over the last week or two the price of oil has dropped to less than $100 per barrel.

Makes you wonder which price is being deliberately manipulated, oil or petrol?

The bottom line... higher petrol prices mean that EVERYTHING that requires transportation will increase in price, too.

Time to revisit the budget.

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