Petrol and home heating oil prices plummet
PETROL PRICES HAVE NEVER BEEN CHEAPER BUT THERE IS NO BONANZA AS CONSUMER DEMAND HAS DROPPED DUE TO LOCKDOWN
PETROL and diesel prices have hit a new low but with industry and workplaces closed and consumers in a two kilometre lock-down, forecourt sales have fallen by up to 70%.
At the Emo service station in Flanagan’s Centra in Castlebridge last Thursday, diesel was reduced to an unprecedented 97c per litre while unleaded petrol was 107c per litre. ‘No-one will beat 97c,’ said owner Louis Flanagan whose premises experienced a dramatic increase in sales when the price went below €1 at 99.9c for the first time the previous weekend.
The price drop is due to a combination of over-production and a price war between Russian and Arab oil suppliers along with the global effects of economies around the world shutting down due to Covid-19 pandemic restrictions.
‘It has been dropping gradually since Christmas. There was over-production by the Russians and the Saudi Arabians who are not getting involved in OPEC and no-one in the world other than the Chinese is using fuel,’ said Louis.
‘Every car in every country in the world is at a virtual standstill. There has been a huge drop in fuel sales, I would say of between 60 and 70%. We ordered petrol two weeks ago, we used to order every two days.
‘Last week, you could have bought a tanker of oil for just over a dollar if you had anywhere to store it.The Atlantic ocean is full of tankers, sitting there, waiting for somebody to buy them.’
The current retail price drop is down from a peak of about
€1.60 a litre for petrol about five years ago with prices above €1.40 towards the end of last year.
‘We are told that when oil prices are low, it’s bad for the economy but that’s horse-shit,’ said Louis. ‘It’s not bad for the couple with two cars to run and a home to heat.’
Petrol and diesel prices at Flanagans are among the cheapest in the Wexford area. ‘Why are we so cheap. It’s not price fixing, so it’s up to ourselves. Why is a sliced pan a different price in one shop than in another?’
Sean Kinsella at Circle K in Crosstown, where fuel prices are also at their lowest for some time, said the price variation between outlets can be partly attributed to when a premises received a delivery, as it can take a while for the price drop to be reflected on the forecourt. ‘If you bought fuel before the pandemic, you could still have that in your tank,’ he said.
Some outlets, including those supplied by the same oil company, are showing differences in pricing on a given day.
‘Most of the price drop that we’ve seen is due to the price war between the Russians and Arabs. It dropped 30c because of that. It has come down by about 3-4c since the Covid-19 pandemic,’ said Sean.
‘It’s the oil industry that is taking a hit and absorbing the price reduction. The government will always get their percentage. The oil companies get 3-4c on every litre and retailers get about the same.
‘Sales are down dramatically, most service stations are down 70% on petrol and diesel because people are not driving.’
Sean expects that motor fuel prices will increase again once restrictions are lifted in light of an agreement last week between oil industry players to end the price war and produce less.
At the Apple Green store in Drinagh, Wexford, a staff member said the reduction in fuel sales since the coronavirus restrictions were introduced, is more noticeable in diesel than petrol which is also down significantly.
‘It doesn’t really matter that prices are lower because people are not driving,’ she said. At Roche’s Circle K on the Rosslare Road, a staff member agreed that the price drop is not all down to the pandemic.
‘The price has gone very low but many people are not working and are limited to distances within two kilometres of their homes,’ she said.
When it comes to cheaper fuel prices, most hard-pressed motortists would love to avail of the unprecedented value, but can only gaze approvingly at garage notices as they adhere to the Covid-19 travel restrictions.
WE ARE TOLD THAT WHEN OIL PRICES ARE LOW, IT’S BAD FOR THE ECONOMY BUT THAT’S HORSE-SHIT. IT’S NOT BAD FOR THE COUPLE WITH TWO CARS TO RUN AND A HOME TO HEAT
* PHOTOS OF FUEL PRICES AT THE FORECOURTS BELOW WERE TAKEN OVER THE WEEKEND OF SATURDAY MAY 2, AND MAY HAVE CHANGED BY THE TIME OF PUBLICATION