Petrol prices set to rise $1.70

Submitted: Tuesday, Jul 09, 2013 at 12:04
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Petrol prices across Australia are tipped to hit $1.70 in the coming weeks, as the Australian dollar weakens and global oil prices rise.

The 15-cent collapse of the Australian dollar in two months has already added around 10 cents at the bowser per litre of fuel.

Economists are predicting petrol prices will be one of the main pressures on household budgets, despite Treasurer Chris Bowen claiming the Australian dollar's drop against the US dollar would be good for the country.

While the Australian dollar weakens, the price of oil reached a 14 month high of $US103, on the back of concerns about stability in protest-torn Egypt.


so what will that be in the country $2.00 or more scary

this will slow the tourists down I am sure and broken hill is packed with family's on school holidays
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Reply By: Mudripper - Tuesday, Jul 09, 2013 at 12:28

Tuesday, Jul 09, 2013 at 12:28
So a strong Aust $ is no good. A weak Aust $ is no good.

WTF?!?! lol
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Reply By: TerraFirma - Tuesday, Jul 09, 2013 at 13:15

Tuesday, Jul 09, 2013 at 13:15
Yeah diesel is looking more value for money now if only the government would cut the tax.
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Reply By: Member - Des Lexic - Tuesday, Jul 09, 2013 at 13:36

Tuesday, Jul 09, 2013 at 13:36
Isn't it fantastic when some half baked person who calls themselves an "Economist" wants some lime light so makes a prediction that petrol prices will jump to $1.70.
Then the press can see a few more sales coming up with a headline "Fuel Prices Set To Soar" so the fuel companies not wanting a chance to let an extra million or so leak into their coffers obligingly put the prices up because we have already been pre-conditioned to paying $1.70
Great isn't it.


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Follow Up By: Steve M1 (NSW) - Tuesday, Jul 09, 2013 at 18:43

Tuesday, Jul 09, 2013 at 18:43
spot-on Des. It sure seems that way.

They'll be telling us the strong Aus$ has been holding prices low when they should've been much lower.
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Follow Up By: Member - Thomo - Tuesday, Jul 09, 2013 at 21:38

Tuesday, Jul 09, 2013 at 21:38
Spot on Des.
I did a check of the average Diesel price in Victoria over the past 7 years and the A$ over the the same period and folks we are being treated as fools.
Sadly our politicians don't have the ........to take on the big oil Companies. Secondly they get the extra revenue from the GST so both sides not interested.
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Follow Up By: Bazooka - Tuesday, Jul 09, 2013 at 23:21

Tuesday, Jul 09, 2013 at 23:21
What did the other major factor - the price of Singapore diesel - tell you Thomo?

http://www.aip.com.au/pricing/facts/Facts_about_Diesel_Prices_and_the_Australian_Fuel_Market.htm
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Follow Up By: Member - Thomo - Wednesday, Jul 10, 2013 at 09:12

Wednesday, Jul 10, 2013 at 09:12
The Singapore factors were in place during the period my comments referred to. Putting propaganda up published by The Australian Petroleum Industry is a bit of a joke. Perhaps you could ask them to publish their pricing policy on diesel for the big miners, then we, the poor public, that the API treat with contempt might be a little more enlightened as to the real truth.
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Follow Up By: Member - Andrew & Jen - Wednesday, Jul 10, 2013 at 11:38

Wednesday, Jul 10, 2013 at 11:38
As a % of take home pay (after tax), fuel is about the price it was in the 1960s, 70s, 80s, 90s, etc.
The miners and other non road users such as farmers do not pay the 18c/l road fuel tax. Plus large users get a better price, same as in any business.
Because of high and growing demand for diesel in Asia (as their economies grow), we will continue to see this reflected in the price we pay.
Cheers
Andrew
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Follow Up By: Bazooka - Wednesday, Jul 10, 2013 at 21:28

Wednesday, Jul 10, 2013 at 21:28
You can ignore the "propaganda" and concentrate on the stats on that page Thommo. Unless you have different data to offer I'm inclined to think it's probably accurate.

Don't be coy now, put up your figures showing the average diesel price in Vic versus the $A over the last 7 years. I think we'll be waiting for a long time to see it somehow, but I'll be happy to be proved wrong.
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Reply By: Member - Joe F (WA) - Tuesday, Jul 09, 2013 at 14:39

Tuesday, Jul 09, 2013 at 14:39
G'day allein m

Amazing how quickly fuel prices rise and how very slowly they fall when such times come around, the so called average fuel price where I live, hovers around $1.68 cpl ~ but this has risen close to the $2.00 mark in the past.

The cost of living in the "mining boom" towns anywhere in the Pilbara is bordering on financially painful, for those of us who have no connection to the mining industry.

The power bill is going up another 4% at the end of this month !!

Safe travels :
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Follow Up By: allein m - Tuesday, Jul 09, 2013 at 14:43

Tuesday, Jul 09, 2013 at 14:43
Yes we are the same living in Broken Hill and it will hit our food prices and other costs not sure at what point we just park the car and catch a bus

sadly there is not much of a bus service here
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Follow Up By: Member - Joe F (WA) - Tuesday, Jul 09, 2013 at 17:34

Tuesday, Jul 09, 2013 at 17:34
Wow ~ You have a bus service !!!!!! ;)

Safe travels :
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Follow Up By: allein m - Tuesday, Jul 09, 2013 at 18:17

Tuesday, Jul 09, 2013 at 18:17
yes starts 9 am and finishes at 6 pm to most of the town 1 hour between service lol
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Reply By: Member - willawa - Tuesday, Jul 09, 2013 at 18:30

Tuesday, Jul 09, 2013 at 18:30
The rip-off IS ONCE AGAIN ON IN Jindaybye ,diesel was $173.9 to day !!! School hols. of course
willawa (NSW)

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Follow Up By: The Landy - Monday, Jul 15, 2013 at 14:17

Monday, Jul 15, 2013 at 14:17
Have other prices gone up in Jindabyne or is it just fuel.

I suspect the price of staying in a ski chalet or lodge goes through the roof at this time of year, so what makes the fuel company so unique?
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Follow Up By: Member - willawa - Monday, Jul 15, 2013 at 17:21

Monday, Jul 15, 2013 at 17:21
We have been fighting the cost of fuel in Jindabyne for ages but no one takes any notice.They say (the fuel coy's.) that ,its the cost of cartage it's strange though that other commodities freight etc isn't !
Lodges etc are usually higher during the school holidays and then in August, there are some good deals at present as the snow is not at it's best right now,but we live in hope !

Cheers
willawa (NSW)

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Reply By: Burnt Damper - Tuesday, Jul 09, 2013 at 18:49

Tuesday, Jul 09, 2013 at 18:49
Vote them back in, there's more to come!
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Follow Up By: Bazooka - Tuesday, Jul 09, 2013 at 19:29

Tuesday, Jul 09, 2013 at 19:29
Yeh because as we all know the government controls the value of the $A and the price of crude in Singapore eh? Who gave us price parity all those years ago? We're actually somewhat lucky that there's been a global recession to keep demand for oil low otherwise we'd be paying 20% more. Get used to it, the price of oil isn't going to drop in your lifetime.
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Follow Up By: PajeroTD - Monday, Jul 15, 2013 at 08:37

Monday, Jul 15, 2013 at 08:37
@Bazooka, if you were sarcastic about the government controlling the value of currency, you should look more into that. Everything works by supply and demand, even currency. Print more currency, there is a greater supply-to-demand ratio, which lowers its value relative to everything else, like oil. Government interventions can also affect the supply of crude oil, so yes, voting actually does have an economic impact. But if the world stays dumb and votes for people who haven't even taken an economics class, then you would be correct in saying the price of oil isn't going to drop.
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Follow Up By: Bazooka - Monday, Jul 15, 2013 at 13:01

Monday, Jul 15, 2013 at 13:01
Supply and demand is certainly a major driver PajeroTD but the price of currency is overall a reflection of market confidence in an economy, not necessarily it's underlying economic position. When the $A was at sub-60c level a decade ago it was clearly undervalued by the market given our economy.

Nations can (and do) certainly take actions which will affect the market (including buying and selling their own currencies) but their policies more often than not cause the currency to depreciate - not appreciate to record levels as has happened to the $A. Printing more money in the USA for example has only had a minor effect because for some reason "the market" thinks that they aren't a risk.

I'll take your bet on the price of a restricted, high-demand, and ever-diminishing resource dropping any time you want. Even with China's continuing good growth figures, demand for oil has been relatively low because of the GFC and when worldwide economic conditions eventually ramp up we'll be in for significantly more pain at the bowser. Hence the reason for encouraging alternative energy sources.

If you're implying that the Australian economy isn't in a sound poisition then I'd suggest it is you who needs to attend a intro to economics class - but make sure it's macro-economics.
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Reply By: Tjukayirla Roadhouse - Tuesday, Jul 09, 2013 at 19:15

Tuesday, Jul 09, 2013 at 19:15
I wish I could get landed here wholesale for $1.70.. what a luxury. ;-)
We'll still buy it.. unless ya wanna trade for a prius, we all need fuel.
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Reply By: Jeremy W - Tuesday, Jul 09, 2013 at 20:01

Tuesday, Jul 09, 2013 at 20:01
Re: ....so what will that be in the country $2.00 or more scary ...l

Once upon a time I pulled up, in my HR Holden, at the Golden Fleece servo in Kingston, SE and held out a $ 2 note saying " two dollars of super", I went along way on $2 worth of super!

Jerry.
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Follow Up By: Skulldug - Tuesday, Jul 09, 2013 at 20:15

Tuesday, Jul 09, 2013 at 20:15
Jerry,
Love it! I used to drive out the Outer Harbour servo in Adelaide on Saturday nights because the others closed at 6pm. It was a self serve where you put 20 cent pieces into the bowser and got a whole lot of fuel. There was a choice of standard and super.

Skull
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Follow Up By: Michael ( Moss Vale NSW) - Tuesday, Jul 09, 2013 at 20:16

Tuesday, Jul 09, 2013 at 20:16
Jerry!! You were probably earning $50 a week then!! Michael
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Follow Up By: Jeremy W - Tuesday, Jul 09, 2013 at 20:50

Tuesday, Jul 09, 2013 at 20:50
Ah yes Skull all the metro servos were closed after 6 PM one had to leave the city to get petrol and the road from Kingston to Millicent was dirt in large parts.

And Michael ... Basic wage was $ 32 and a first year apprentice got c. $18 per week. First year apperntices could only afford an FJ holden at $150.

Jerry.
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Follow Up By: Michael ( Moss Vale NSW) - Tuesday, Jul 09, 2013 at 21:12

Tuesday, Jul 09, 2013 at 21:12
Yes i remember the fuel stations closed at late arvo and the coin operated bowsers! I have to say i had forgotten about them. Jerry I started work in 1973 as a Fitter And Machinist, got $32 a week after tax and if i worked 6 hours O/T on Saturday, I got $40.. My Brother in law had a new Mini, fuel was 40 cents a gallon and he got 40 MPG... so 1 mile for 1 cent... My Patrol costs 20 cents per kilometre, so its about 27 cent per mile. For the first 10 years of driving, I spent most of what I earn't on Holden V8s and mods, fuel, take away food and women and sadly I wasted the rest.. :)) Michael
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Reply By: Michael ( Moss Vale NSW) - Tuesday, Jul 09, 2013 at 20:13

Tuesday, Jul 09, 2013 at 20:13
We actually need the Aussie dollar to be at around US 0.70 cents to get our manufacturing and exports going again. Sadly imports will become more expensive and fuel seems to cop the brunt of it. I guess with the dollar being so strong for such a long time we have had relative cheap fuel so when our dollar drops and oil prices soar, we get a double dose of price increases. If you compare our fuel prices to Europe and the UK, our prices are not too bad. I remember back to around September 2009, Diesel was over $2.00 a litre in Sydney. Oil was US$200 a barrel. Imagine the cost of a litre of diesel if our dollar was US$.70 and a barrel at US$200 !! Michael
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Follow Up By: The Landy - Monday, Jul 15, 2013 at 14:27

Monday, Jul 15, 2013 at 14:27
I tend to agree in part, but the problem for our manufacturing industry isn't the just value of the dollar, sure it is impacting, but it is Australia's cost base (wages) that has made us uncompetitive.

Even Australian's won't buy local because it is too expensive - that's a message for us all...
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Reply By: Member - Coldee - Tuesday, Jul 09, 2013 at 20:16

Tuesday, Jul 09, 2013 at 20:16
So when the dollar was high how come the price didn't go down.

Government sanctioned profiteering perhaps. It is school holidays
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Follow Up By: Michael ( Moss Vale NSW) - Tuesday, Jul 09, 2013 at 21:15

Tuesday, Jul 09, 2013 at 21:15
You can get a better explanation of how the universe started than you can of fuel prices. Governments don't have the guts to take on the oil companies, there is no other explanation! Michael
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Follow Up By: Bazooka - Tuesday, Jul 09, 2013 at 23:33

Tuesday, Jul 09, 2013 at 23:33
It did. If you look in the link above you'll notice though that the gap between the retail average price line and the TGP varies quite a bit - probably retailers pocketing the few cents difference is my guess.
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Reply By: Member - eighty matey - Tuesday, Jul 09, 2013 at 20:22

Tuesday, Jul 09, 2013 at 20:22
It wouldn't matter what colour Govt we have in because they all love the taxes from fuel, especially the GST that is 10% of whatever you pay.

They love us spending.

Steve
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Follow Up By: Jeremy W - Tuesday, Jul 09, 2013 at 22:47

Tuesday, Jul 09, 2013 at 22:47
Hey Steve,

The main tax on fuel is the excise and we also pay a 10% gst on the excise and as it is levied first we get a tax that is taxed!

They love spending? Of course! Does anybody think that a government would last more than 2 minutes if it did not spend, spend spend.

I understand that we are lucky to be paying " such low taxes" as the government may well argue that we do not pay enough for all the services that everybody wants or gets or they dream up to get votes.

Jerry.

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Follow Up By: Member - eighty matey - Wednesday, Jul 10, 2013 at 18:11

Wednesday, Jul 10, 2013 at 18:11
As I said, it doesn't matter who's in, they want to get as much of our cream as they can.

Last year's trip cost $6000. $4000 was diesel. We were in some remote areas and the most we paid was $3.60 a litre in Kunawarritji. I actually don't mind paying that out there because it's a hell of a long way from anywhere and I wasn't keen on pushing the Cruiser.

Anyway, whatever it costs I'll pay because I love getting out there.

You mentioned taxes and "services", I worked out last week that all my taxes for the whole year will pay for Julia's pay for one week when she retires. That doesn't really inspire me to pay up.

Hoo roo,
Steve
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Follow Up By: Jeremy W - Wednesday, Jul 10, 2013 at 22:44

Wednesday, Jul 10, 2013 at 22:44
In my next life I am going to grow a really thick hide, learn to lie through my back teeth and become a politician.

Vote #1 " The Jerry Party"

Jerry.
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Follow Up By: Member - eighty matey - Thursday, Jul 11, 2013 at 07:57

Thursday, Jul 11, 2013 at 07:57
That was the plan we hatched around the campfire last Saturday night.
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Follow Up By: The Landy - Monday, Jul 15, 2013 at 14:34

Monday, Jul 15, 2013 at 14:34
Hey Jerry

Why wait till the next life, why not give it a go now and make a difference for us all, surely it can’t be all that hard, I mean trying to please 22 million people all at the same time ;)
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Follow Up By: Jeremy W - Monday, Jul 15, 2013 at 15:28

Monday, Jul 15, 2013 at 15:28
The Landy, Greetings.

I would never get voted in nor would " The Jerry Party" as I believe n empowerng The People and NOT having power over The People.

You see it takes a particular type of psychopath to become a politician and that is why the quality of the leadership is so poor. The best people have not got the hide to enter politics. So you see one has to train themself in the base art of politics and to do this one has to start young.

Jerry.
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Reply By: prado 01 - Wednesday, Jul 10, 2013 at 08:52

Wednesday, Jul 10, 2013 at 08:52
In 2008 when it hit $ 1.50 the shock people were claiming within a couple of years it would be over $ 2.00, didn't happen.
But so what, even if it does it's still going to sell because that's the way we are.
Cheers
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Reply By: Sandman - Wednesday, Jul 10, 2013 at 10:29

Wednesday, Jul 10, 2013 at 10:29
You're all breaking my hearts....Unleaded is $1.73 and Premium is $1.80 already in Alice Springs....get used to it folks :-)Suspect this will tip us over the $2.00 mark out here...

Unless it goes to $4.00 no one will change their patterns, its just another level of discomfort we will just get used to....
AnswerID: 514558

Reply By: SDG - Wednesday, Jul 10, 2013 at 23:14

Wednesday, Jul 10, 2013 at 23:14
It's probably a secret long term stategy by the government to get all but the most fuel economical vehicles off the road, or into public transport They tried the direct approach a few years back by buying the older ones, but I don't think that really worked.
AnswerID: 514594

Follow Up By: Jeremy W - Thursday, Jul 11, 2013 at 15:28

Thursday, Jul 11, 2013 at 15:28
Germany went down this path so the auto manufacturers made these incredibility fuel efficient cars. The government discovered its fuel take started falling so they slapped a tax on fuel efficient cars.

I believe the government ( and the people who own the government in big business) spin on saving energy is just that : all spin and Bravo Sierra. Look at gas and electric energy politics and prices ....

WE are simply not consuming enough!!

I feel so much better now,

Jerry.
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Reply By: Michael ( Moss Vale NSW) - Thursday, Jul 11, 2013 at 13:10

Thursday, Jul 11, 2013 at 13:10
Actually , increasing from $1.40 to $1.70 is not a big deal. I find the $1.40 per litre to be the major cost when I fill up 120 liters. The extra .30 cents is the cheap part . ;) Michael
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Reply By: The Landy - Monday, Jul 15, 2013 at 10:50

Monday, Jul 15, 2013 at 10:50
Can anyway come up with a "good" reason as to why Caltex is ceasing refining fuel products at its Kurnell factory if there is so much money in it?

The cost of fuel is what it is, the most commoditised commodity on the planet...

AnswerID: 514821

Follow Up By: Michael ( Moss Vale NSW) - Monday, Jul 15, 2013 at 18:24

Monday, Jul 15, 2013 at 18:24
Caltex and Shell are both ceasing oil refining in Sydney. Both companies say that refining in Sydney is actually profitable but they need more profit from their investment. So there you go! Cheaper to import and more greed !! Michael.
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Follow Up By: Bazooka - Monday, Jul 15, 2013 at 22:52

Monday, Jul 15, 2013 at 22:52
I realise your question is rhetorical Landy but I'll answer in any case - the same reasons that other companies have taken their manufacturing offshore: reductions in cost and complexity (laws and compliance issues for example), and improved ROI. Once they dismantle their capability (and Australia's) they/we will be reliant on competition in overseas refining in order to keep their costs under control. There have been calls for a national strategic policy on in-house refining, for pretty obvious reasons.
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Follow Up By: The Landy - Tuesday, Jul 16, 2013 at 09:07

Tuesday, Jul 16, 2013 at 09:07
Bazooka, understand.

Michael,

The reality is that neither can get a return significant enough for the capital employed. It sort of debunks the theory that there is a lot of money to be made from refining petroleum products.

The Kurnell refinery was built in the 1950’s and whilst it has had upgrades it cannot compete with the mega-refineries in Asia.

America, the bastion of all things capitalistic, haven't built a new refinery in over 30 years; why not if there is so much money to be made from it? It is a question worth asking when the call goes out that fuel refiners are ripping us all off...

I have written on the fuel topic many times in the forum over the past few years, and not to defend fuel companies, they are big enough to do it themselves, but it is best we understand it fully, before calling for (successive) governments to fix something they have no control over.

Rest assured if the government of the day could pull a big stick and out an “whack” one of the refiners, it would because it would surely be popular with the voting public, but they don’t for the simple reason that almost everyone has tried, but the reality is there is nothing to “whack” them about – the price is what it is, and there is a market mechanism that controls it perfectly.

Back in 2008 I flagged that the biggest concern for Australia isn’t the price of the fuel, but whether Australia would retain a refining capability, time has proven that they are packing up and going home when it comes to actually refining because the return versus the capital cost is simply not worth it...

Over time this will have far greater implications for the supply of fuel to Australia.

And don’t read me wrong here, I don’t want to pay anymore than I need to, but I at least want to understand why I pay what I do.

Here is one of the posts...Fuel - More myth than fact?


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