Petrol firms sensitive to crude price hikes but not drops
Mr Narayana Narayana hit the nail on the head in “Plunging oil prices have not helped consumer” (Jan 29).
When crude oil prices rise, petroleum firms adjust prices in 48 hours. Today file photo
Mr Narayana Narayana hit the nail on the head in “Plunging oil prices have not helped consumer” (Jan 29).
As a motorist, I notice that when crude oil prices rise, the petroleum companies adjust their prices within 48 hours.
In this instance of crude oil prices dropping to US$50, the reactions are delayed and the price drop is marginal.
It would be interesting to know what constant factor in their overheads buffers the drop in prices but is sensitive to increases.
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