Crude oil is a commodity traded on international markets. Refineries convert crude oil into a wide range of products, including petrol and diesel. Crude oil prices are dependent upon market forces - principally supply and demand, which in turn can reflect such issues as the producing countries’ income needs, global economic growth and energy needs.
Esso produces and also purchases refined petroleum products. The cost of supplying petrol, diesel (and other refined products) to customers is influenced by the cost of the refined products traded on international wholesale petroleum markets. As with crude oil, these products are usually traded in dollars and prices are reported by various media outlets including the Financial Times.
Whilst over the long-term the wholesale price of refined products generally reflects the price of crude oil, there is no strict correlation. The pressures of supply and demand for refined products have tended to lag those of crude oil and can be affected by other forces such as seasonal demand as well as demand and supply balances for differing types of product (e.g. growth in demand for diesel versus petrol).
In addition to this, the international wholesale product prices have fluctuated due to changes in the $/£ or $/€ exchange rate.
Lastly, Esso's own costs (shipping, transport, logistics and distribution, product storage and operating, employment and marketing costs) also influence the price at the pump. Esso does not publish details of these costs as the information could be of commercial value to our competitors.
Overall our pump prices are influenced by all of these factors as well as a requirement to remain competitive. Customers are mobile and our pump prices are clearly displayed on pole signs.
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