The BS of petrol pricing

[Pedro]

When is the Federal Government going to get fair dinkum and reign in the gouging oil companies? One would suspect NEVER!!
It’s to busy rubbing its hands together slurping up the $$$$ millions in tax on petrol to worry about Australian families struggling to pay their bills.

The price per litre Queensland’s Gold Coast yesterday was mostly around $1.40.9 … today its $159.9 !!! … a nineteen cents per litre difference!!!!

What other product in Australia could gain a 13.5% price increase overnight and not attract government condemnation and an inquiry???

[SSD-85]

Now why would the government care about reducing the price of a product they get a massive excise % for & that everyone has to buy? I can hear the pollies laughing already...

Now dont get me wrong, I despise it just as much as any other motorist. But we have a snowflakes chance in Darwin of Govco doing anything about it.

[BLUEYBA]

Originally Posted by Scotty85

Now why would the government care about reducing the price of a product they get a massive excise % for & that everyone has to buy? I can hear the pollies laughing already...

Now dont get me wrong, I despise it just as much as any other motorist. But we have a snowflakes chance in Darwin of Govco doing anything about it.

Its not just the excise they get. The excise stays the same no matter what the price. The thing the government likes about the fuel going up is the GST. If fuel prices go up their GST revenue rises and thats why they do nothing about the prices. Remember the GST is a tax on a tax when it comes to fuel

[Samtheband]

It's a joke. Melb is the same. I agree tho, pollies will be laughing at that situation.

[Road_Warrior]

What's the terminal gate price these days?

[Lukeyson]

crap, it was 154.9 yesterday when i drove home, i need to fill the GT up today, hate to think of what it will be !
But agree with OP's sentiments, but as others said, govt are getting a free kick with mega tax dollars

[GhiaEB]

Why would they care when they don't have to pay for petrol? They get Cab-Charge or chauffeured limos?

[blackf6]

The dollar 1.40 price would of been standard unleaded, and premium or 98 octane would of been the 1.60 so hardly a 19cent price jump overnight ,2 different products. Petrol prices are only going to get worse so start thinking of ways to save money like we all do. I ride a bike to work.

[Pedro]

Originally Posted by teak81

The dollar 1.40 price would of been standard unleaded, and premium or 98 octane would of been the 1.60 so hardly a 19cent price jump overnight ,2 different products. Petrol prices are only going to get worse so start thinking of ways to save money like we all do. I ride a bike to work.

I don't know how you arrived at your conclusion, but your interpretation is incorrect.
Both prices I quoted are for standard unleaded.
The nineteen cents price jump is for ONE product.

[Yellow_Festiva]

E10 at the local shell was 139.9 which I thought was pretty good. I agree with the price changes you see in x hrs. I used to drive past a servo going to work and say to myself that I would fill up on the way home only to see the price up 15c ...

I thought they were talking of capping price changes over a set time? Would be nice to have a bit of predictability for those who budget...

Wait till the Coles / Woolies duopoly get stronger... Will have less choice to shop around.

[Yellow_Festiva]

Originally Posted by Yellow_Festiva

E10 at the local shell was 139.9 which I thought was pretty good. I agree with the price changes you see in x hrs. I used to drive past a servo going to work and say to myself that I would fill up on the way home only to see the price up 15c ...

I thought they were talking of capping price changes over a set time? Would be nice to have a bit of predictability for those who budget...

Wait till the Coles / Woolies duopoly get stronger... Will have less choice to shop around.

That 139.9 went up to 157.9 over night, then back down to 155.9 this evening....

Seems Diesel is pretty stable.. only fluctuated a few cents over the same period.

[JXRT66]

I paid $1.70 odd this morning for 98. What a bargain!!!

[flappist]

A lot of years ago New Zealand had a fixed retail price for petrol regardless of whether it was in the middle of Auckland or Haast and totally brand independent.

Maybe Australia should do the same and ban outright predatory discounting and vouchers.

[nstg8a]

Originally Posted by flappist

A lot of years ago New Zealand had a fixed retail price for petrol regardless of whether it was in the middle of Auckland or Haast and totally brand independent.

Maybe Australia should do the same and ban outright predatory discounting and vouchers.

When did NZ do that? Must have been before my time I think

[flappist]

Originally Posted by nstg8a

When did NZ do that? Must have been before my time I think

Well I saw it in the 1970s, I have no idea when it stopped.

[buggerlugs]

Originally Posted by nstg8a

When did NZ do that? Must have been before my time I think

You obviously don't know how old Flappist is

[Yellow_Festiva]

Originally Posted by flappist

A lot of years ago New Zealand had a fixed retail price for petrol regardless of whether it was in the middle of Auckland or Haast and totally brand independent.

Maybe Australia should do the same and ban outright predatory discounting and vouchers.

In my original response just above yours I mentioned how in NZ the price was very stable as per my trip there last year... I removed the line just before posting in case it was no longer the case.

There was no more than 4c difference in price from what I can remember... including Milford Sound where it's isolated location would have demanded a30c/L premium over here..

[eyes87]

I think I'm paying about 1.69 for bp 95. I don't genereally look though. Just makes me angry.

[TMC]

Fuel is not taken into account when the Gov calculates the inflation figures. That's the problem. Inflation officially was low during the last official period, yet fuel which effects everything, went up. If you included fuel in the inflation calculation, then the real story would emerge.

[minheim]

When petrol prices jump you are seeing the discount through competition disappearing and the price returning to the top of the price cycle. It is not a move up from where it would/should be but rather a return to where it would be but for stronger competition pressures.

As for a fixed price, that would see prices set at a higher average price than a cycle produces.

Unfortuneately, Oil is in demand world-wide and is demand is only growing as standards of living rise in many countries (particularly China and India). On top of that the Middle East is unstable and older fields are being drained.

If there was any easy solution one of the political parties would have jumped on it.

[Kevaclone]

Originally Posted by minheim

When petrol prices jump you are seeing the discount through competition disappearing and the price returning to the top of the price cycle. It is not a move up from where it would/should be but rather a return to where it would be but for stronger competition pressures.

As for a fixed price, that would see prices set at a higher average price than a cycle produces.

Unfortuneately, Oil is in demand world-wide and is demand is only growing as standards of living rise in many countries (particularly China and India). On top of that the Middle East is unstable and older fields are being drained.

If there was any easy solution one of the political parties would have jumped on it.

Correct
Most people have no idea how it works and just blame the oil Companies

The quoted is exactly what happens
Everyone thinks that stopping the fluctuating price will make it cheaper where in fact it would remain at the higher price and there would no longer be the low cycle prices. These low cycles are your chance to get fuel cheaper and are a result of competition

Also the excise does not fluctuate with the retail price as it's a set amount/Litre on the wholesale price, what does change is the GST you pay, at the higher price the Govt gets 1.5cpl more GST than at the low price

[cobramania]

Originally Posted by Kevaclone

Correct
Most people have no idea how it works and just blame the oil Companies

The quoted is exactly what happens
Everyone thinks that stopping the fluctuating price will make it cheaper where in fact it would remain at the higher price and there would no longer be the low cycle prices.

You can't say that for sure, last year a BP servo near me never moved their price for about 3 - 4months, day in day out it was always the same price per litre. At the time it was at the low end of the competitors price cycle (they went up above BP's price). In the end they had to go up as prices were rocketing up & they were left way behind. During that period they were either loosing money or just not profiteering week to week?
Fuel can remain stable & not at high levels, the crude oil price doesn't surge & fluctuate that much, we should only be paying 1c/L more for every $1 crude oil goes up & reverse when it comes down.
Healthy competition can keep prices low, sustainable & stable, but there is nothing heathy about the big 2's (Coles & Woolies) competition, when they're creating unsustainable low prices, subsidised from other business interests, & then hiking the price up 15-20c/L overnight to make a bit more money.

[BLUEYBA]

Originally Posted by minheim

When petrol prices jump you are seeing the discount through competition disappearing and the price returning to the top of the price cycle. It is not a move up from where it would/should be but rather a return to where it would be but for stronger competition pressures.

As for a fixed price, that would see prices set at a higher average price than a cycle produces.

Unfortuneately, Oil is in demand world-wide and is demand is only growing as standards of living rise in many countries (particularly China and India). On top of that the Middle East is unstable and older fields are being drained.

If there was any easy solution one of the political parties would have jumped on it.

Do you realise they recently found huge reserves of oil. Its not in the middle east but in Africa

[kevino]

Wife just bought petrol at 711 Robina at 1.389/litre.
711 are setting the (low) prices on the Gold Coast while the majors try and drag it up.
Pedro have a look at the 711, s on the Gold Coast.

[ROBBO1981]

it moves so much the fuel price it makes me crazy. on pay week i put $100 in and in between $50, I refuse to pay more. pick and choose my day like everyone else.

there have been more drive off's and pre paying after 6pm in perth

[csv8]

Brisbane this morning went up 18cl !!!!!!!!!!!!!!! last night it was $141.9 in Moorooka, this morning, $159.9 !!!!!!!!!!!!!!!!!!! something definetly funny with petrol prices...and my Fez runs on PULP, which is 15cl more!!!!

[B&D Racing]

BP at Merrimac $1.59 for std ulp $1.73 for Ultimate @ 8am

United at Mudgeeraba $1.55 for E100 or $1.37 E10 and every other servo around the same time $1.36 for std ulp ?

Why can one servo magically set thier own price?

[Chilliman]

At the end of the day the Government won't do a thing to regulate fuel prices - why? Because the Oil Companies are more powerful than any single Government, let alone the Government of this country.

Try to impose any meaningful legislation that might actually improve the situation and they will just pack up and leave, cutting supply off.

The Govt could then nationalise the oil industry, pouring Billions into it - but having to raise taxes to do so; likely effect we'd end up with more expensive fuel. (Anyway I'm not sure we'd have enough oil for our own needs)

We would probably be embargoed by the oil-cartels worldwide and would start having to do a South africa, turning coal into oil; a very costly process which in the end results in more expensive fuel.

At the end of the day the Govt isn't going to help because they are powerless to do so, and anything meaningful that they could do would probably irreparably damage the economy and result in higher fuel prices anyway.

On the flip-side, the Government is addicted to the massive tax revenues from fuel sales, so there's little incentive on their part to change that.

The only power we have is as individuals, and that is to alter our pattern of use through:

- making sure your vehicle is properly maintained so it is as efficient as possible

- choosing a vehicle that is as fuel efficient as can be for your purposes

- walking, cycling, taking public transport when you can or even car pooling if you can arrange it

The only thing that has ever lowered oil prices is demand destruction i.e. lower demand as occurred during the GFC

[jpd80]

Our fuel prices in Australia are determined by OPEC members be that TAPIS in Asia or Middle East Cartel for LPG.

It so funny seeing West Texas Index being quoted and then OPEC's TAPIS straight after it at 30% higher..

[GT 160]

Paid $1.78 for premium at my local BP yesterday. My backside is still sore