Petrol pricing

It will be most interesting to see how the oil pricing plays out where I am. The US fracking activity has dramatically
pushed up available oil. I'm told that Middle East production won't be slowing soon. My price per liter has been falling steadily from
maybe $1.38 - 1.44 a year ago to about $1.22. I have to guess because I use a commercial cardlock with volume, not price.
Today, I took on just over 135 liters and at -10C with wind, nearly froze my buns off. That price difference turns out to mean a lot.
The thirsty pig is a 454cid/7.6l engine in a GMC Suburban 4x4. Full fill might be 190+l.

in Darwin we are paying $1.70 a lt ,
we are closer to Singapore than east coast citys

Darwin has no independent service stations , only the big 3 United , Caltex and BP , and petrol prices stay fixed for the week ( no discount cycle )
Katherine has one independent service station and have fuel costs 20 cents per lt less than Darwin

so 300km south of a capital , petrol prices are cheaper ??????

WE ARE GETTING RIPPED OFF

United was regularly 3c cheaper than coles or woolies , now United accepts any shopper docket offer , they are the same price ????

I hate to say it, but the fuel companies charge whatever the market will stand. It is pretty much like that everywhere.

It is the same reason online downloads tend to be more expensive in Australia than some other countries. Large companies including multi nationals rarely turn around and say,

"Look, we are making a royal profit on this product but we can put it on the market much cheaper. Just so we can assist you so we are going to do just that." :no:

As other have pointed out, in the case of fuel a high proportion of the purchase price goes in taxes both direct and indirect.

Regards
Paul

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Originally Posted by Big Shed

Can you give me a link to Alan Kohlers' graphs Arthur?

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Sorry Fred but I simply saw it while watching the ABC news.Can't even remember what night!

Two things have always intrigued me:

1. What do people use as the basis for deciding whether or not petrol is "expensive" or "cheap".
2. You hear everybody moaning about paying $1.30 for a litre of petrol but the same people happily pay twice that for a litre of bottled water. Petrol is the end product of a long process that starts with oil exploration and ends with extensive processing of crude oil. Bottled water.....well it's more or less straight out of the ground and straight into a bottle.....nowhere near the amount of processing that oil goes through to end up as petrol at the pump.

Quote:

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Originally Posted by kiwigeo

Two things have always intrigued me:

1. What do people use as the basis for deciding whether or not petrol is "expensive" or "cheap".
2. You hear everybody moaning about paying $1.30 for a litre of petrol but the same people happily pay twice that for a litre of bottled water. Petrol is the end product of a long process that starts with oil exploration and ends with extensive processing of crude oil. Bottled water.....well it's more or less straight out of the ground and straight into a bottle.....nowhere near the amount of processing that oil goes through to end up as petrol at the pump.

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Ooooh! I think the lads are fired up enough about fuel: Don't get them started on bottled water :rolleyes:. We'll never hear the end of it.

I have bought more fuel than I care to think about. I have never bought bottled water. Why do you think the same people who buy fuel buy bottle water? Also, where can I buy fuel for $1.30. I recently tyravelled to the Blue Mountains for one of the Forums GTGs. The cheapest I saw was $1.33 up at Katoomba. Most places in Sydney were close to 10c above that and back home it is somewhere between $1.50 and $1.60.

I still haven't bought any bottled water at any price, but do take my own in a vacuum flask to keep it cool.

Regards
Paul

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Originally Posted by Bushmiller

Ooooh! I think the lads are fired up enough about fuel: Don't get them started on bottled water :rolleyes:. We'll never hear the end of it.

I have bought more fuel than I care to think about. I have never bought bottled water. Why do you think the same people who buy fuel buy bottle water? Also, where can I buy fuel for $1.30. I recently tyravelled to the Blue Mountains for one of the Forums GTGs. The cheapest I saw was $1.33 up at Katoomba. Most places in Sydney were close to 10c above that and back home it is somewhere between $1.50 and $1.60.

I still haven't bought any bottled water at any price, but do take my own in a vacuum flask to keep it cool.

Regards
Paul

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1. Petrol got down to around (or even below) $1.30 a litre a few weeks back here in Adelaide. My point was it doesn't matter how low it gets people still think it's "too expensive" and my question is exactly what price do people consider a fair price for petrol and on what criteria would they base this price?
2. Anyone who owns a vehicle buys fuel....there'd be a significant proportion of those people who also buy bottled water. Ive heard a lot of discussion about the price of petrol but I cant recall the last time I heard anyone remarking on the exorbitant price of bottled water.

Quote:

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Originally Posted by kiwigeo

Two things have always intrigued me:

1. What do people use as the basis for deciding whether or not petrol is "expensive" or "cheap".
2. You hear everybody moaning about paying $1.30 for a litre of petrol but the same people happily pay twice that for a litre of bottled water. Petrol is the end product of a long process that starts with oil exploration and ends with extensive processing of crude oil. Bottled water.....well it's more or less straight out of the ground and straight into a bottle.....nowhere near the amount of processing that oil goes through to end up as petrol at the pump.

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No mystery here Kiwi, both are rip offs and both are the biggest con to hit Australia since The Bottom of the Harbour scheme :D

TT

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Originally Posted by artme

Sorry Fred but I simply saw it while watching the ABC news.Can't even remember what night!

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Thanks Arthur, thought it may have been on the ABC website, I do like Alan Kohlers' graphs, in fact many (most?) times his is the only bit of the news that I enjoy watching.:rolleyes:

Oh and Kiwigeo, fuel and bottled water, one (water) is a discretionary item, the other (fuel) isn't. Bottled water is sold by many companies and varies very widely in price. Fuel is sold by only a few (very large) companies that behave like a cartel no matter what any ACCC says.

I have dealt with oil companies all through my working life, not just for fuel, and I know first hand how they regard their customers.
I have however never worked in the oil industry so I am an outsider looking in.

Hi Arthur,

Alan Kohler showed a graph of TAPIS crude price vs petrol price in Oz and the petrol price followed the TAPIS crude very closely.

He also stated that fuel price had fallen 20% and would fall further.

I find his graphs usually very interesting as is his presentation on financial matters, always factual with a bit of dry humour (sadly lacking in the rest of the news bulletin:rolleyes:)

$1.69 yeasterday at the pump at the local yesterday.

Price drops? My ass.

Everyone knows the answer is use less, make efficient consolidated trips and go light on the accelerator.

What I keep reminding myself of, constantly, is we are all whinging about this while in our nice houses, fancy cars, good food, stable government and low unemployment and local mega-shops with $6 shoes.

Imagine what it's like to the billions who scratch out a subsistence living, peons, peasants or live in countries with no health care.

Paying $1.50 a litre for a single litre of petrol must be a decision between transport or eating.

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Originally Posted by Evanism

$1.69 yeasterday at the pump at the local yesterday.

Price drops? My ass.

Everyone knows the answer is use less, make efficient consolidated trips and go light on the accelerator.

What I keep reminding myself of, constantly, is we are all whinging about this while in our nice houses, fancy cars, good food, stable government and low unemployment and local mega-shops with $6 shoes.

Imagine what it's like to the billions who scratch out a subsistence living, peons, peasants or live in countries with no health care.

Paying $1.50 a litre for a single litre of petrol must be a decision between transport or eating.

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Well Evan, I don't know what your posterior has to do with the price of petrol:p, but this morning in downtown Bendigo petrol was selling for between $1.33 and $1.36, before any fuel docket discounts.
I only buy petrol for my lawnmower and chainsaw as one car is on LPG and the other is a diesel.
Not that long ago I was paying around $1.69 for diesel, now $1.419. I was paying low 90s for LPG, now $0.659 (in Melbourne $0.619).

So yes, there have been substantial price drops, whether those price drops equal the TAPIS crude drop I don't know, but according to the graph that Alan Kohler showed they do (almost).

If you are paying those sort of prices in Das Kapital that is obviously some sort of premium you are expected to pay for all the other subsidies that other Australians are paying for keeping Das Kapital afloat.:D

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Originally Posted by Big Shed

but this morning in downtown Bendigo petrol was selling for between $1.33 and $1.36, before any fuel docket discounts.

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You're being ripped of Fred. Thursday I filled up one car at $1.27.7 before discounts. :D

I saw today it was a bit cheaper still.


Peter.

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Originally Posted by Sturdee

You're being ripped of Fred. Thursday I filled up one car at $1.27.7 before discounts. :D

I saw today it was a bit cheaper still.


Peter.

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Yes, that's the price for living in paradise Peter:D

The price in this part of paradise is $1.50 for diesel.
It hurts to fill up the 75 litre tank on the van :C