Keeping bumper reserved stocks of petroleum products, whenever international costs reduces. This is a matter which deals with mass public interests and can't be compromised on daily basis.

Dear Mr. Kapooria,

my answer may not directly match with your question because the situation in my country, Germany, is different. We are faced with a special daily Jo-Jo effect which has nothing to do with weight watching but with fooling the customers, so that at the very end the drivers and car-owners never know when to refill. It has once been banned by the authorities but as nobody is monitoring this doing or cartelization evils like that are obviously not punishable the business men continue doing so to make money because they are in control of the sources and the distribution facilities.

It is simply an abuse of power.

This multiple Jo-Jo price jumps are only to camouflage the strategy of how to make money at its best

H.G.Dill

As COVID-19 is temporarily under control, artificially suppressed markets will show a tendency to "Snap back" more quickly towards the norm. This in turn, will increase driving for not just personal cars, but also delivery services and trucks. Consequently, petroleum demands are increasing, and the price along with it. The solution, for most consumers, is better transit. And of course, wear a mask!

First, just like any other commodity, there are various factors that determines the price of petroleum at any point. A very cogent one is the law of demand and supply.

The global lockdown that came with Covid-19 pandemic tampered with demand and supply curve because the demand by high volume consumers of the product like the manufacturing and transportation sector dropped drastically. China, being the hotspot of the pandemic further increases this effect.

The best solution is to try to manage the curve but cutting down production (supply to a level), which translate into storing excess. Although, this method was effective, as petrol prices moved up. However, it will not be feasible on long term basis because, oil companies will eventually run out of storage capacity.

Concerning the pump price of petrol, I think this is a very sensitive issue that varies from one country to another.

For example, In my country, Nigeria, we are an oil producing nation. On the other hand, we depend on other countries for refined petroleum products. the landing cost, (which includes the shipping cost and taxes) and the distributor's profit all determines the final pump price. The federal government claimed to subsidize the product. However, the impact is not felt.

So the agency in charge does it's calculation considering all the above factors and come up with a range of price monthly. Off course the filling stations always sell at the maximum price.

Regards

Olatunbosun Kafisanwo

If oil is in iraq then even if its 1 million dollars for each barrel nothing will change because the government and some people who are in government will take that mony and nothing will change to people who lives there.

The current COVID-19 pandemic has generated political, educational, social and economic changes around the world, in order to promote discussion, especially in the economic sector, we share the following manuscript.

Article Economy or Health, Constant Dilemma in Times of Pandemic: Th...

Government's get advanced reserved storage of petroleum commodity for some crucial time period. An economic threshold takes time. It doesn't fluctuate on daily basis. Daily basis change in price of commodities is not supported by economy evaluation guidelines. But, international prices get changes/ fluctuations on short time basis. So, reserved stock theory get compromised, if petrol/diesel price changes daily.

According to the old system, it is"Unjustified". However, according to the new system which will based on the Artificial intelligence and robotics, it is normal. Only the time is needed to shape it correctly.

In developed economies, commodity prices are determined by market forces and not government policies, although, these policies provide regulatory frameworks.

The downstream and midstream industries are low profit margin businesses. When oil price falls as witnessed during the pandemic, the profit margin shifts to the midstream industry as feedstock are bought at low prices thus necessitating a downward review in the price of finished product. The gradual easement of global lockdown has increased the demand for crude oil thus shoring-up its price, this increase in the price of feedstock will also reflect in the price of finished products thus necessitating a corresponding price readjustment.

Definitely not considering it is most likely when fuel price is increased, marketers will be quick to implement the new price but when price is reduced, the marketers will become slow in implementing the downward review in price resulting in them hoarding the fuel till when their is an higher price. This can lead to artificially induced fuel scarcity which negatively affects the masses and the economy at large compounded by problems of the pandemic

I am thankful to all participants who took interest's to discuss there's views.

If global prices of said fuels getting decreased than it's awakward to continue increase in price on daily or frequent basis. People's earnings getting severely affected and the funds etc gained by IMF, WORLD BANK etc also getting ruined for the poor's. Fuels regulate most of the daily use essentials.