AnswerID: 285349 Submitted: Sunday, Feb 03, 2008 at 13:49
DIO
replied:
I think that without any Govt intervention e.g. price control, you have to understand that market 'forces' are at play. A retailer will generally set his price at that which the market will bare - taking into consideration any direct opposiition.
Retailers/resellers are in the business of making money. To do that requires that the selling price of the item being marketed is greater that the wholesale price. The greater the difference between the two - the greater the profit (cash in pocket). It is obvious from the presence of diesel powered vehicles
on the road (world-wide) there's been a marked increase in their ownership/numbers. Hence, those in the oil industry (wholesalers and retailers) can see that demand for their product has grown therefore higher prices are more achievable/sustainable. Doesn't maatter how much you or anyone else reminices about 'the good old days' with diesel being cheaper than petrol the fact is that while there is growth in demand there will be sustainability in higher prices.
How to beat them at their game -
shop around, buy only on the lower side of the discount cycle, use shopper dockets, reduce your driving/mileage, remove some of the excess/surplus weight from your vehicle - tool boxes,
accessories (unecessary for urban travel), lightn-off on the gas pedal, reduce your speed a little, drive more smoothly - avoid unecessary braking/stopping/starting or if all that fails to meet with your expectations then consider leaving the truck in the shed.
Now there is one way where lower prices to the consumer are achievable without wholesalers or retailers having to suffer any losses. What's that you say, well just consider the percentage motorists pay in tax (GST) and excise per litre. Every time there is an increase in the retail/pump price, the Govt. both State and Federal receive a nice little windfall. With all of the increases in the world oil prices, nowhere have we heard of any (ANY) Govt. Minister suggesting let alone advocating a reduction in either of these taxes imposed on motorists. Yes I know that some in the community (Mining, agricultural etc) may receive rebates BUT never have I know (or recall) a Govt. offering 'Joe Average' a reduction. What a windfall for Govts. If you really want to do something meaningful, whinge to your local Member(s), annoy the heck out of them, demand changes, tell them you've had enough.
That's the only way I can see there ever being any long term meaningful improvement for motorists.
Reply 3 of 10
FollowupID: 550306 Submitted:
Sunday, Feb 03, 2008 at 20:16
Gerhardp1 posted:
Mostly true, except the bit about both Fed and State govts getting more when the price rises.
The Feds get a fixed excise, the extra GST all goes to the states.
The feds will only get more from price rises if the oil companies decide to declare a higher taxable profit in Aus.
This is probably unlikely, since they would all be declaring the barest minimum they can get away with in AU, due to our high company tax rates.
There is also at least one Japanese car importer that does the same - "transfer pricing" leaving bugger all profit in AU. Can't mention its name, but it starts with the letter after S
FollowUp 3 of 3