The price of petrol

[flappist]

On the weekend I filled up with ultimate at Nambour, $1.31/litre. Down the road povvo unleaded was $1.16.

Two questions.

1) What happend to the $2/3/4/5 per litre by Xmas "its the ent of the world as we know it"

2) Who will holden's spin be if it drops below 99c/l ?

[gozza]

I just paid 1.26 for unleaded - I remember 2 Christmas's ago, people saying it will be $2 a litre. I never submitted to that "the end of the world" consensus.

[4Vman]

The frightening thing is how quickly things turn around at the moment... i do agree though, people who panic normaly come off second best.... i wonder if the performance car market will make some form of recovery? I looked at a GT-E or F6X for the mrs on the weekend..
Can't wait to see Holdens spin if petrol drops below 99c though!

[b0son]

Originally Posted by 4Vman

The frightening thing is how quickly things turn around at the moment

Just shows how much of the price was down purely to speculation (its not as if demand has plummeted). Hopefully, this economic crisis forces banks and hedge funds out.

[GORDZ]

haha yeah i had to have a giggle when those petrol stations in nsw are selling for 99c a litre! I know it's a BS saving of like $1800 after the whole thing is said and done but hey, it's still laughable

[chevypower]

In June, Dodge ran the same sort of thing here. $2.99 per gallon guaranteed. Well it's like $2.49 here, national average is lower, and as low as $1.98 in Texas... the thing is... who really knows where the price of oil will be in the future. I believe even OPEC did not know it would go this low. Even though they try to control the supply to "stabilize" (yeah right) the price!

[Sprint XR8]

In the US, Ford have just rehired 1000 workers to add a third shift at the F-150 plant. They cut production too deeply in reaction to the high fuel price.

[Bossxr8]

Originally Posted by coupex

In the US, Ford have just rehired 1000 workers to add a third shift at the F-150 plant. They cut production too deeply in reaction to the high fuel price.

Sounds strange. The US economy in total freefall is absolutely drilling the US automakers now, just as much as the high price of oil did. Total US sales are down something like 30% in the past few months, even Toyota is down 33%, more than anyone. I can't see how Ford would be increasing production now as its not going to pick up anytime soon. Whats your source on this.

Any reduction in oil price is just being replaced with the failing economy, which is actually making a bigger dint in sales than what high oil prices did.

[Sprint XR8]

Article: Ford Rethinks Truck Pullback.
http://online.wsj.com/article/SB1225...googlenews_wsj
Article: Ford Adding Shift At Dearborn Plant To Support 2009 F-150.
http://www.trucktrend.com/features/n...150/index.html

[Rob's 76 Effy]

I bet we never see Petrol for under a $ a litre ever again, the thing with the ppl cutting prices in sydney was a protest of independants against the supermaket chains and they even admitt they cant keep doing it

[flappist]

Originally Posted by Explorer_Me

I bet we never see Petrol for under a $ a litre ever again, the thing with the ppl cutting prices in sydney was a protest of independants against the supermaket chains and they even admitt they cant keep doing it

I remember during the Gulf War (first one) petrol went from 46c to 84c and there was "end of the world as we know it".

Six months later petrol was 46c again.

The price of petrol is artificially high but the petrol companies have a huge problem that we all now know about. They HAVE to produce.

You cannot turn a refinery or well off and on as required, they tend to not like that so if the price is too high demand falls and people look at alternatives which will cost the profiteering oil companies $lots as they have nowhere to store the excess.

Please note that if the $AUD was still in the .90s USD petrol would be under 99c/litre......

[chevypower]

Originally Posted by flappist

Please note that if the $AUD was still in the .90s USD petrol would be under 99c/litre......

That depends if the AUD is high compared to other currencies too. If it's just high compared to the USD, then oil will also be high compared to USD. The USD is picking up against all other currencies and commodities, so oil and the AUD are down compared to the USD. Oil and AUD to each other probably haven't moved a whole lot. it sounds confusing, but USD is not a constant.

[flappist]

Originally Posted by chevypower

That depends if the AUD is high compared to other currencies too. If it's just high compared to the USD, then oil will also be high compared to USD. The USD is picking up against all other currencies and commodities, so oil and the AUD are down compared to the USD. Oil and AUD to each other probably haven't moved a whole lot. it sounds confusing, but USD is not a constant.

Well....

1) Oil prices are always given in USD.
2) The only mony worth less than ours is kiwi dollars and some third world pesos.

In May I went to China and was getting 7.3 HKD now it is something like 4.3.....

[XWGT]

[QUOTE=flappist]Well....

1) Oil prices are always given in USD.
QUOTE]

True however directly irrelevant. AUD fuel prices are based on the Mogas 95 price (TAPIS OIL PRICE) which dosnt directly move with the movements in the USD. The Singapore stocks are only starting to rise now even though the price per barrel in USD has been down for awhile. Hence we are only seeing price decreases at the pump now. (Less 2 weeks of price gouging by the oil majors)

I think though that OPEC is determined to have a price between $70 USD and $90 USD (their statement today) so it will rise probably another 5% or so.

HOWEVER I am certain the crazy $150 USD prices were only ever a result of speculators. Most are now broke or out of business so hopefully its back to more stable and reasonable prices.

[Airmon]

I've only ever payed less then $1/L for petrol once in my life. I can't imagine it any other way :

[FPV GT40]

Originally Posted by Airmon

I've only ever payed less then $1/L for petrol once in my life. I can't imagine it any other way :

mmmmwhen I bought my first V8 I was paying 29 cents a liter....at the time everyone used to say if it ever goes above 50 cents people will stop driving cars

Filled the FPV up this morning with 98ron and was thinking to myself 1.39..geee thats cheap, then I thought about how we got brain washed into paying high prices. :evil3:

[irlewy86]

Nope Aussie dollar is down against everything, give it 6 months and PK will be all over the radio talking about how the AUD is correcting our ecconomy and insulating us from the ecconomic blowout.

[FPVF6X201]

Don't forget that the 99c/l that the independants had was E10, not regular unleaded. Good on 'em for trying though.

[Rob's 76 Effy]

Just seen on the local news PP $1.16, so there might be a chance but i doubt it will go as low as a buck a ltr
Yeah i remember starting out paying 30c a litre them were the day's, even then i would hunt around for cheap fuel LOL

[GORDZ]

hey, BP's ultimate used to be a flat rate 10c per litre more.... same with caltex, same with shell.

why was bp's ultimate 12.5c more on the weekend???

[fordAU]

Originally Posted by GORDZ

why was bp's ultimate 12.5c more on the weekend???

In the smart state, well in Brisneyland anyway Ultimate is always 12-14c more, its expensive fuel but in my case its the only fuel that stops that pinging in the Windsor.

[DJM83]

Originally Posted by fordAU

In the smart state, well in Brisneyland anyway Ultimate is always 12-14c more, its expensive fuel but in my case its the only fuel that stops that pinging in the Windsor.

Agreed thats why i use it too.

[The Mighty Red]

I cant understand why petrol hasnt gone back down to $1 per litre......the price of oil has dropped something like 40% in the last 6 months so why hasnt the price of fuel done the same .

[Rob's 76 Effy]

Originally Posted by The Mighty Red

I cant understand why petrol hasnt gone back down to $1 per litre......the price of oil has dropped something like 40% in the last 6 months so why hasnt the price of fuel done the same .

I bet it's because the oil company's bought it at the higher price and need to recoup there money, funny when they buy at the lower price and cost go up the price rockets up straight away

[TUF_302]

All the talk about paying $2 a litre or more by xmas was just plain and simply scare tatics! Things like this are on a cycle!, they go up to a point where people think the end of the world is looming, then a few months later, things start to fall again! its just how the world works lol!

[chevypower]

Originally Posted by TUF_302

All the talk about paying $2 a litre or more by xmas was just plain and simply scare tatics! Things like this are on a cycle!, they go up to a point where people think the end of the world is looming, then a few months later, things start to fall again! its just how the world works lol!

The bottom line is nobody really knows. If the trend is going up, as it was, the pundits predict it will get even higher. When it goes down, they predict it will keep going down. I seriously don't know why they get paid to do what they do. Could it get to $2 a litre? absolutely! The car manufacturers aren't betting these low prices are here to stay, and believe they will go up again. OPEC want to the price to increase, so they will cut supplies even more. The countries that are members of OPEC want to be paid more for their oil, so they will put pressure on OPEC to cut supply until it gets back up there. Yes, the price goes up and down, but look at the long term part of the pattern. People tend to only look at short term.

[XR Martin]

Originally Posted by The Mighty Red

I cant understand why petrol hasnt gone back down to $1 per litre......the price of oil has dropped something like 40% in the last 6 months so why hasnt the price of fuel done the same .

Its because the AUD has dropped in value as much at the Oil price.

[King Nothing]

Originally Posted by XR6 Martin

Its because the AUD has dropped in value as much at the Oil price.

No it hasn't. AUD is currently around $0.67, thats about a 30% drop from $0.96. Oil has dropped by over 50%. Where is the difference going?

[Sprint XR8]

Article: F-Series Powers Ford To Highest Retail Share In Two Years.
http://uk.sys-con.com/node/733782
The F-series sales have actualy fallen the least of all fords models -16%, and remains the number one selling vehicle in the US, 43,324 sales in oct08.

[DJM83]

Yay another petrol price thread :togo:, there was one afew weeks back on the drop in prices.