Fuel Prices

[Condoking]

Whether we like it or not we have to get used to the price of petrol and diesel increasing year by year. This is primariuly due to the shortage of worldwide refining capacity and the 15 - 20% year on year consumption increases in both China and India. Europe and America have hardly built any new refineries in the last 30 - 40 years, upgraded them but rarely built new ones. Crude is heading northwards breaching $80 per barrel, up 30% this year, with all teh traders on a one way bet for further increases. We are now entering into the northern winter and Diesel stocks will be in short supply, price increases, when the northern summer comes back the driving season picks up then Petrol is short, so it increases.

Also inflation of 6% per annum means 50% in 7 years and double over 12 years, only compensation is that most countries understate inflation so we would be no better off back home wherever that may be.

[Big Boy]

chelsea wrote:

It always amazes me the amount of people on this site that moan and complain about taxi prices, how would they feel if someone came into their business and wanted a service at cost price or less.

I hope people will think twice next time they are trying to screw the local taxis down to do a trip to the airport for less than 2000baht.

This statement strikes a chord with me. My daughter always arranges our airport taxi at a 'Thai' rate. My wife then always insists on giving the driver a 500 Baht tip - usually citing the price of fuel as the reason.

[PeteC]

chelsea wrote:

It always amazes me the amount of people on this site that moan and complain about taxi prices, how would they feel if someone came into their business and wanted a service at cost price or less.

I hope people will think twice next time they are trying to screw the local taxis down to do a trip to the airport for less than 2000baht.

This statement strikes a chord with me. My daughter always arranges our airport taxi at a 'Thai' rate. My wife then always insists on giving the driver a 500 Baht tip - usually citing the price of fuel as the reason.

That's good BB, shows she has a good heart. Also, consideration for vehicle wear and tear, hauling a guy with size 13 brogans and all that's attached to them from S'boom to HH! Pete

[Big Boy]

Not size 13 Pete, actually size 14

[The understudy]

[quote="Condoking"]Whether we like it or not we have to get used to the price of petrol and diesel increasing year by year. This is primariuly due to the shortage of worldwide refining capacity and the 15 - 20% year on year consumption increases in both China and India. Europe and America have hardly built any new refineries in the last 30 - 40 years, upgraded them but rarely built new ones. Crude is heading northwards breaching $80 per barrel, up 30% this year, with all teh traders on a one way bet for further increases. We are now entering into the northern winter and Diesel stocks will be in short supply, price increases, when the northern summer comes back the driving season picks up then Petrol is short, so it increases.

Also inflation of 6% per annum means 50% in 7 years and double over 12 years, only compensation is that most countries understate inflation so we would be no better off back home wherever that may be.[/quote]

Hello condocking!

I could remember it quite well when a barrel of of "DA Black Gold from DA Ground hit 70$ for the first time. It was early to mid July two years ago. When do you think the "Black Guey stuff from Plants and Trees a few ten thousand years ago" will hit 100$ a Barrel. will it take another two years or less?

your's the understudy!!!

[Vital Spark]

From a very local (Thailand) perspective, the increase in the cost of fuel is affecting them hugely.

A lot of people who live in the area where we live work for Dole Thailand. They ride their motorcycles to and from the factory, and some of them travel over 20 kms. They earn around 170 baht a day, for a twelve-hour shift. The hike in petrol prices really hurts.

We've noticed a difference with our 15km drive to the University, and, fortunately, we can absorb the cost. The Thais earning the minimum wage are really struggling. If local wages increased, then the price of everything increases, and the working class would be in the same situation.

I'm not an economist, I therefore have no idea what the solution is. If there is one...

VS

[redzonerocker]

If local wages increased, then the price of everything increases, and the working class would be in the same situation.

that just sums up the life of the working classes no matter where in the world you live.
in one hand & out the other. it's a vicious circle & you're right vs, there probably isn't a viable solution

[Condoking]

When do you think the "Black Guey stuff from Plants and Trees a few ten thousand years ago" will hit 100$ a Barrel. will it take another two years or less?quote]

No-one really knows when the $100 per barrel will be hit but my guess is that it will be sooner than most of the pundits predict as they tend to be a bit cautious. Also the oil markets react very quickly to "maybe's", storms heading to the US Gulf, Iran flexing their muscles etc. OPEC agreed to deliver an extra 500,000 barrels per day earlier this week and the price still went up. The other problem is the question as to whether Oil production has peaked, i.e. we are using more per day than the Oil Barons are finding. When this will be nobody actually knows but the resource is finite, unfortunately the worlds appetite is not.

[Big Boy]

Condoking wrote:

we are using more per day than the Oil Barons are finding.

If we believe the 'Northwest Passage' article that seemed to be getting shown on Sky News most days throughout August (or at least it seemed that way), then there is still plenty of undiscovered oil sitting there, just waiting for somebody to claim it.