Instant petrol price rises

Why is the petrol price instantly linked to the price of crude oil? There’s at least a three month delay between the time crude oil is purchased and shipped to New Zealand for refining and delivery to your local petrol station. We’re paying for petrol at ~$US140 per barrel when that petrol was refined from oil that cost less than $US100 a barrel.

To make that work with anything else you’d probably need to have a small group of companies that operated like a cartel.  Couldn’t happen in our free-market economy where competition is king.

Have you noticed that (in New Zealand) the petrol price is always some dollar and cents amount followed by .9 cents? No matter the oil price or the exchange rate - it’s always .9 cents. And all the oil companies come up with that exact same price ending in .9 of a cent, every time. Amazing.

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