Question

Increased demand, security fears, depleted oil reserves, and production cut-backs all contributed to an increase in the world price of crude oil. In 2012, for example, the market price was close to #130 per barrel for UK-traded Brent crude. The market price in 2008 had been around $70 per barrel.

At one point after a quick surge in the price of crude, the major oil companies raised the retail price of refined oil products, even though these products were manufactured from oil purchased at the earlier, lower prices. The media charged the oil companies with profiteering and price gouging. Quick to respond, outraged politicians promised immediate investigations.

Critically evaluate the charge that the major oil companies profited from the rapid increase in the market price. What advice would you offer their environment?

Answer 1

THIS IS UNETHICAL WHAT THE OIL COMPANIES ARE DOING AS THE PRODUCT IS MANUFACTURED FROM THE LOWER LEVEL OF OIL PURCHASED.SO I SUGGEST THE FOLLOWING SUGGESTIONS.

1 THE DATE SHOLD BE DECIDED THAT THE PRODUCT MADE UPTO THE DATE SHALL NOT BE SOLD AT THE HIKED PRICES SO WE CAN IDENTIFY FROM THE DATE.

2 THE PRODUCTS SHOLD BE MARKED WITH THE MANUFACTURING DATES SO THAT IT CAN BE EASILY IDENTIFIED.

3 THE STOCK SHALL BE PROPERLY CALCULATED BY THE AUTHORITIES SO THAT THEY CAN CALCULATE THAT.