Quote:
Originally Posted by red-beard
Rick, usually, there isn't the same demand for Home Heating Fuel as there is this year. But I guarantee that if a refinery can make more money by making diesel, they will try to make as much as they can.
FYI - Diesel is probably higher than it would have been because of the sulfur rules.
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My comment was just one example, lets say for the sake of argument that manufacturing and shipping cost lower because of the lower price of oil, then the over all price of a widget will be lower. If said widget costs $10 to produce, market and distribute before the cost was lowered and the manufacturer mad a net profit of two dollars and after the new, lower price has an final cost of $8 then they stand to double the profit by keeping the price fixed.
The cost of our widgets won't drop in price since the market has already adjusted to a price of $10, increasing their profit and keeping the cost to the consumer the same.
Sure we are saving a few dollars a week on our fill ups, and I do enjoy that, but I really don't see much in a way of overall effect to pricing of goods or services.
Yes I am thinking an a very narrow state of mind but I almost have to, I am not in a position to be free with my limited funds, and have to look at how this directly effects me, and to be honest it really doesn't. I am only saving about five dollars a week and my wife about the same, that doesn't even cover a cheap dinner out for her and I.