Here’s an updated version of a graph that I originally put together last year. It shows the movement in the price of Irish unleaded petrol (as per the AA Petrol Price page) vs the price of a barrel of oil (the price of light sweet crude as is always quoted on the news reports when referring to the price of oil).
I’ve been trying to decipher what this chart is actually telling us.
I was originally inspired to rerun this analysis because its obvious that despite the massive fall in the price of a barrel of oil in the past 6 months, we haven’t been seeing similar drops at the petrol pumps. And this graph is showing us that thats the case – the green line for the oil price is below the red line for the petrol price.
Yes, all bad and not very nice for us consumers.
But, as you can see if you look further back in time, when the price of oil was skyrocketing in mid-2008, we were somewhat shielded from the full impact of that – illustrated by the massive gap between the red and green lines during that time.
So, a sort of petrol pricing swings and roundabouts. It looks as if petrol retailers didn’t make as much money as they could have done last year, but are making up for it now.