We are in Recession

With the ongoing global recession, it is hard to be unaffected by what is going on around you. Everyday we read thousands of jobs were being shed, companies going bust and major cost cutting measures are everywhere to be felt. Our utilities bill is expected to go up significantly this year.

And then suddenly China and the rest of the world start to use less oil. The oil price quickly tumbled down, from as high as $US145 per barrel to $US57 today.

At the pump, the big drop in the oil price however is not reflected in the pump price. Since its height 3 months ago when RON98 fuel cost Euro1.65 per liter, it is now only 25% down, at Euro1.26 per litre, which is about B$2.50 per litre. So why has the decrease in the pump price not the same as the decrease in the raw oil price. Good question - the same question being asked by all car drivers here. Somehow somebody is still raking a big profit.