Source: wildsingapore / flickr
“PUMP prices came down by as much as four cents yesterday, in the third cut since May.
Esso started the ball rolling at 4.30pm when it lowered its petrol and diesel prices by three cents a litre.
Shell followed with a four-cent cut at 4.45pm. FuelSave 95 and 98 petrol now cost $1.807 and $1.89 a litre, respectively. The price of diesel is unchanged at $1.333 a litre.
At 5.15pm, Singapore Petroleum Co reduced its 92-, 95- and 98-octane petrol by four cents a litre to $1.747, $1.807 and $1.89 and diesel by three cents a litre to $1.303.
Caltex followed at 6pm, with a three-cent cut to $1.757 and $1.817 a litre for its 92- and 95-octane petrol respectively. Diesel costs $1.303 a litre.
At 7.50pm, Esso cut its petrol prices by a further one cent. A litre each of 92-, 95- and 98-octane petrol now costs $1.74, $1.80 and $1.89, respectively. Diesel is $1.30…”
“Petrol pump prices down,” The Straits Times. 7 Jul 2010.
Ponder
- What do you call this behaviour?
- As evidenced by the above, what do you think is the structure of this market?
- Why do firms in this market structure behave in this manner?
the learning economist 