Fuel pricing

[burnz]

42 gallon/159 Litres

[mik]

one of my relo`s was over from pommy land was saying to me, be grateful your not paying pommy land prices for fuel, i think his rough conversion to ozzy dollars was $2.80 per litre.
moving on ............... so how does our lpg fit into all of this?

[bobthebilda]

Originally Posted by mik

one of my relo`s was over from pommy land was saying to me, be grateful your not paying pommy land prices for fuel, i think his rough conversion to ozzy dollars was $2.80 per litre.
moving on ............... so how does our lpg fit into all of this?

Australia might have only enough oil supplies to last for another 10 years of production at current rates, but apparantly we have enough LPG supplies to last us 40 years at current production rates. But thats at current rates. If over the next 5 years, all road transport was to switch over to using LPG, then we would run out of LPG in less than 9 years.

Altho the government has committed to a phased increase in LPG excise (which aint much in the scheme of things), you can bet that any dramatic changeover from petrol use to LPG use would cause a huge shortfall in government revenues, and it would be changed as quick as a no carbon tax promise.

[GK]

My brother is very good mates with a bloke who works for a large oil company.

His take on the price of fuel is this "don't believe anything the media says, they set the price exactly as they like".

I believe it too.

GK

[bobthebilda]

Originally Posted by GK

My brother is very good mates with a bloke who works for a large oil company.

His take on the price of fuel is this "don't believe anything the media says, they set the price exactly as they like".
I believe it too.
GK

Theres no doubt that they set prices, and probably even collude a little bit to do it. Caltex (one of the biggest refiners in australia) release a refiner margin update to the stock market every couple of months. For February, they made $6.44 for every barrel they refined. So if they bought $100 barrels, they made 6.44% on what they bought it for, to what they sold it for. 6.44 % aint a great margin, when you consider companies like Telstra operate on margins like 40%. Caltex have the added advantage that its a high turnover business and they can make that margin very quickly, but sometimes they have to wear alot of costs too. And they have to compete with other refiners in australia and in other asian countries too. The likes of woolies and coles operate on even lower margins than what your traditional oil companies do.

Most of the big money comes from the owners of the oil wells ie Saudia Arabia. If they are exporting 6 million barrels a day at $70 profit for each barrel, then they are making about $420 million a day in profit. It might sound alot, but distributed amongst its population (and obviously its not distributed equally) of 25 million people, it only amounts to $17 per person per day. Not quite enough to sustain a race of people who have a complete disdain to working.

[GASWAGON]

Will this happen or is it just a scare?

NRMA says petrol could go as high as $2 per litre

"Not unrealistic" if continued strife in Middle East
"We are really being protected by that strong dollar"
PETROL prices are heading for $2 a litre and families should start saving money now, the NRMA has warned.


Coles petrol subsidising cheap milkWatchClose
Coles petrol 'subsidising cheap milk'
Retail giant Coles has been accused of subsidising its lower milk prices by raising its petrol prices.

It said the annual fuel bill of families could skyrocket by up to $2000 a vehicle, if ongoing tension in the Middle East continues to force oil prices up, The Daily Telegraph reported.

The NRMA also called on the Federal Government to develop a strategy to deal with Australia's dependence on imported oil, saying motorists are "sitting ducks" when it comes to fuel prices.

NRMA president Wendy Machin said households should be bracing themselves.

"A couple of years ago we would have said $2 was alarmist, but in mid-2008 prices were close to $1.70 and 18 months before it was $1.10, a jump of 60c in that short time.

"At the moment $1.50 is fairly average at the bowser and we have this strong Aussie dollar well on parity or above that.

"So it is not unrealistic at all if we see continued strife in the Middle East and the dollar falls that we would be getting up to around $2 a litre."

Yesterday unleaded prices across Sydney averaged $1.38 a litre, with a low of $1.30 and high of $1.51.

An NRMA BusinessWise analysis found $2 a litre would add almost $2500 to the annual petrol bill for a Toyota Hilux driver from Penrith to the CBD, and $2000 for a Ford Falcon driver. A Campbelltown family with a Holden Commodore Berlina would pay an extra $1700 and $2210 if they lived in Gosford.

Petrol Commissioner Joe Dimasi said petrol would be at least 20 cents dearer now if the local currency fell to last year's levels.

"We are really being protected by that strong dollar," he said, and would not rule out petrol hitting $2 as a worst case scenario.

Receptionist and law student Bianca Xerri, 21 drives from Cecil Hills to the city every day and spends $80 a week on petrol. "It doesn't matter how much prices go up, I'll have to find the money to pay it," she said.

Petrol is the single biggest purchase by households on a weekly basis, said Commsec economist Savanth Sebastian.

The average household pays over $200 on petrol for their monthly bill, up $35 in the past six months, he said.



Read more: http://www.news.com.au/money/money-m...#ixzz1IG02Sce6

[bobthebilda]

Originally Posted by EF_6

Will this happen or is it just a scare?

NRMA says petrol could go as high as $2 per litre

Well all things being equal ie dollar being the same, oil production being the same and a barrel of Brent crude currently being about $116 a barrel. To go from the current (and high end) $1.50 a litre to $2.00 a litre would need a litre equivalent of crude to go up about 43 cents (the other 7 cents would be made up with extra transport costs and GST etc). 158 litres (in a barrel) x .43 cents, would require a barrel of Brent crude to go up an extra $68 a barrel. Ie making it $184 a barrel. It only got to about $148 in 2008, but there have been a few predictions that it might reach $200 a barrel. But who really knows, economists are less reliable than weathermen.

But then again, all things being equal, and the australian dollar falling to 60 US cents would achieve the same result.

But then again, a litre of petrol was only 60 cents 12 years ago, so theirs no reason to think that in 12 years time it could be 2 and 1/2 times the current price ie $3.75

[Franco Cozzo]

At the moment, I'm filling up once every 2 weeks just travelling to and from work in my Focus so thats not bad, it only cost me about $65 to fill up roughly 40L of diesel.

[my_gxl]

Originally Posted by csv8

"are we being bent over"...sure are..and no KY Jelly either to ease the pain!!!!
Brisvegas today I saw ULP $154.9 and my Fez runs on PULP which is 15cl more!!!!! Diesel Fez ??? maybe!!!!

Fri is meant to be cheap day too.
Am forced to use PULP E10, $1.496 when everywhere else was $1.55, plus you get 4c off when you buy over 40L.

I don't notice any performance drop at all.

[dave351cid]

i noticed something odd today when we filled up the work ute.

we were getting deisel @ $1.799 / L and i was looking around at the other pumps.
petrol bowser next us has 2 x ulp 91 and one vortex pump.
vortex = $1.599 / L ,..... but one ulp 91 pump was $1.489 /L and the other one six inchs away was $1.980 ???.
the next bowser along the driveway had one ulp 91 pump @ $1.469 and the othe @ $1.489 .
so 3 different prices for the same fuel at the same time and place.

[Mr Hardware]

thanks for the helpful information bobthebilda
back when i used to use petrol cars as my daily drivers (and subsequently conform like a sheep lining up for petrol on cheep chuesday) i used to watch the price of oil and could tell you what the price of petrol would be in 2-3weeks time. nowadays i don't care for it so much.

[jamesson1980]

Originally Posted by dave351cid

i noticed something odd today when we filled up the work ute.

we were getting deisel @ $1.799 / L and i was looking around at the other pumps.
petrol bowser next us has 2 x ulp 91 and one vortex pump.
vortex = $1.599 / L ,..... but one ulp 91 pump was $1.489 /L and the other one six inchs away was $1.980 ???.
the next bowser along the driveway had one ulp 91 pump @ $1.469 and the othe @ $1.489 .
so 3 different prices for the same fuel at the same time and place.

I'l bet, once in the shop, you thought twice when selecting which 600ml coke to grab

[bobthebilda]

Originally Posted by jamesson1980

I'l bet, once in the shop, you thought twice when selecting which 600ml coke to grab

You've probably hit the nail on the head there jamesson. People are always angry when they have to spend $1.40 for a litre of petrol, that cost the service station $1.35 to buy, but they have no problem buying a bottle of coke (or even worse water) for $2.00 that cost the service station 40 cents to buy.

[Rockape]

Thats where they make there money i think.

[jamesson1980]

Originally Posted by bobthebilda

You've probably hit the nail on the head there jamesson. People are always angry when they have to spend $1.40 for a litre of petrol, that cost the service station $1.35 to buy, but they have no problem buying a bottle of coke (or even worse water) for $2.00 that cost the service station 40 cents to buy.

that's not exactly where i was going, i was just being smart.. like a servo with different prices on each ULP91 pump would make ya wonder if the coke is more expensive from the main fridge than the little display cooler next to the register.

But no, i don't think anyone points the finger at individual merchants for obscene prices.. i like to hate on the parent oil companies myself

[KuRT12]

Really cant wait till production of Ethanol gets up and kicking

[bobthebilda]

Originally Posted by KuRT12

Really cant wait till production of Ethanol gets up and kicking

I'm not quite sure you want to live in a world that is reliant on Ethanol production. It sounds all warm and fuzzy but, most experts agree that it gives a poor Return on energy invested. Most i see give it a negative return (ie it takes more to produce, than it produces. Even the most optimistic say it produces 1 to 1.6, as below.

The study found that 1.5-1.6 more units of energy are derived from ethanol than are used to produce it

So for a farmer to grow the crops, and the refiner to refine the product will take 1 barrel of ethanol to make 1.6 barrels. Out of the 1.6, 1 barrel then has to go back to the farmer and the refiner, to allow them to make the next 1.6 barrels. Out of the .6 barrels left over, well seeing how very little of australias population actually live anywhere near ethanol production areas, then i guess a wee little bit may make it after it is transported (using ethanol) to the end user. You could increase its impact by getting more farmers to make more ethanol, but what are you going to eat.

[bobthebilda]

You gotta love the logic we use in this country. An Industry of true national importance, is slowly dying off -

http://www.abc.net.au/news/stories/2...section=justin

And the government fumbles head over T$T each year to prop up other industries, which wouldnt exist if this one didnt.

You can almost see the headlines in five years time. Government subsidised 75% imported cruze, unable to be driven due to government short sightedness in not seeing asian fuel blockade.