Cost of unleaded versus diesel

Submitted: Wednesday, Mar 25, 2015 at 22:23
ThreadID: 117235 Views:2272 Replies:6 FollowUps:13
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Have been noticing the last few days around Melbourne service stations how unleaded fuel prices have risen to around the $1.35/7 per litre but diesel is lagging behind at around $1.23 per litre .
Now originally when diesel was heaps more costly than unleaded we were told the reason for this was the industrial demand for diesel in China and India . now we know that growth in China has slowed somewhat , is this the reason diesel prices are lagging ??
Not complaining of course
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Reply By: Neil & Pauline - Wednesday, Mar 25, 2015 at 22:52

Wednesday, Mar 25, 2015 at 22:52
It would have nothing to do with the authorities looking into why diesel prices have been so high.

Most probably fuel companies just feeling charitable.

Neil
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Follow Up By: Member - Brian - Wednesday, Mar 25, 2015 at 23:24

Wednesday, Mar 25, 2015 at 23:24
yeah good stuff Neil n Pauline , tooth fairies , Intelligent blondes and Father Christmas next !
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Follow Up By: Member - Brian - Wednesday, Mar 25, 2015 at 23:49

Wednesday, Mar 25, 2015 at 23:49
With apologies to all the lovely blondes out there whom im sure have a great sense of humour !!
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Follow Up By: Slow one - Thursday, Mar 26, 2015 at 05:45

Thursday, Mar 26, 2015 at 05:45
They just had an inquiry into regional fuel prices where the town has a fuel delivery sea port. For some strange reason all the prices dropped to around the capital city average prices.

Unleaded and diesel are both at $1.30 at the moment, but as the months go by I am sure the price will somehow creep upward to 10c a litre plus above the capitals.
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Follow Up By: Member - bbuzz (NSW) - Thursday, Mar 26, 2015 at 10:05

Thursday, Mar 26, 2015 at 10:05
A few years ago, there was a push from the govt to recoup the cost of repairing the roads from the damage done by the increase in truck traffic.

This was to be done through a tariff on diesel, hence the price went up above the cost of unleaded and stayed there.

There may be other factors now but once a tax is put on fuel, it stays there.
The best example is the 3x3 tax put on by Greiner in NSW. The deal was 3 cents for 3 years. Guess what?

Its still on!! No surprises there.

bill
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Follow Up By: Slow one - Thursday, Mar 26, 2015 at 13:32

Thursday, Mar 26, 2015 at 13:32
Bill the excise on unleaded and diesel is the same at I think 38cents. Trucking receives a 12 cents a litre rebate off that 38 cents.
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Reply By: Michael H9 - Thursday, Mar 26, 2015 at 06:11

Thursday, Mar 26, 2015 at 06:11
I was thinking it has to do with what the station has in its tank undergound. Petrol prices fluctuate quicker than diesel because they sell more and have to get more at a different price. Diesel is slower to come down in price as well. I've noticed that the lower volume garages in my area maintain the price (higher or lower), a bit longer than the higher volume ones. Of course this might all be crap, but I do know if I see the price move at certain garages, that I have up to a week to go to others and take advantage of it.
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Follow Up By: Hewy54 - Thursday, Mar 26, 2015 at 08:17

Thursday, Mar 26, 2015 at 08:17
Originally diesel was much cheaper than unleaded. It is only over the last few years that it has become dearer. Hopefully it will remain cheaper than unleaded for a long time.
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Follow Up By: Bigfish - Thursday, Mar 26, 2015 at 08:18

Thursday, Mar 26, 2015 at 08:18
I don't bother looking at any fuel prices now. The whole fuel issue is a giant con that is all about ripping motorists off for all they can. They being the govt, the oil company and many garages, distributers too!
This is what large corporations excel at...

Now I just pull in, fill up and pay. $1.20 one week, $1.80 the next.

We will never win..
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Follow Up By: Member - Brian - Thursday, Mar 26, 2015 at 09:29

Thursday, Mar 26, 2015 at 09:29
Hewy54 we are both showing our age if we can remember when diesel was cheaper than super !
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Follow Up By: Michael H9 - Thursday, Mar 26, 2015 at 09:58

Thursday, Mar 26, 2015 at 09:58
It's still cheaper in Europe. That means it is the government that determines how much we pay full stop.
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Follow Up By: Member - Bigred13 - Thursday, Mar 26, 2015 at 10:04

Thursday, Mar 26, 2015 at 10:04
Hi all ,we live in SA and for about 6 weeks up until a month ago we were as low as 96.9cpl ,then the price went up to about 1.06,then up to now $1.26 av in Adelaide ,but we are 40kms north and even when the price was low, we were getting the low prices ,now we have been at #1.36 since the price rise ?? .Returned last week from down the south east SA and the prices were $1.26's 450 Kms from Adelaide, yet 40kms away $1.36, it is make up time I guess .
Costco starting here in Kilburn started the price drop, funny part was
there was a Shell opposite Costco ,they price matched Costco and with the shopper docket, you get 4c cheaper again, so it can be done .

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Reply By: Member - Boobook - Thursday, Mar 26, 2015 at 08:50

Thursday, Mar 26, 2015 at 08:50
Once again where is the ACCC?

The Australian Oil industry always refers to the Singapore Gate prices and how Diesel Prices relate to demand in Asia.

Current Diesel explaination

But if you check the price of Diesel in Singapore, guess what?

The List price is $1.30 verses $2.26 Sing.

Singapore Shell prices

What the?
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Follow Up By: garrycol - Thursday, Mar 26, 2015 at 14:20

Thursday, Mar 26, 2015 at 14:20
The fuel industry is basically unregulated so the fuel companies can charge what they like no matter what the ACCC does or says.

The ACCC can only act if there is demonstrated collusion between companies to set the price. At the service station level collusion has been proven on a few occasions but I dont think the ACCC has proved anything at the fuel company level. That is not to say it might not be happening but no provable evidence at this stage.

Garry
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Reply By: The Landy - Thursday, Mar 26, 2015 at 09:33

Thursday, Mar 26, 2015 at 09:33
Recently, physical cargoes of ULP 95 & 98 have been bid higher, bearing in mind that Australia is now importing a lot of refined product versus refining crude oil into product (fuel) in Australia, due to the closure of a refineries by Caltex and Shell.

Australia has a large requirement for ULP 95 & 98 grade; however there are limited suppliers (refiners) in the region so it is more prone to price movements on smaller volumes.

On the other hand, there are plenty of suppliers (refiners) of diesel and therefore less prone to price movements based on supply/demand pressures.

And it is fair to say in a broader context that industrial demand for diesel has declined based on a downturn in activity in countries like China.



Cheers Baz – The Landy
AnswerID: 551630

Follow Up By: TTD1 - Thursday, Mar 26, 2015 at 20:22

Thursday, Mar 26, 2015 at 20:22
Touring the South Island of NZ at the moment and diesel is $1.19 and unleaded $1.92 in most major towns.
TTD
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Follow Up By: get outmore - Friday, Mar 27, 2015 at 12:46

Friday, Mar 27, 2015 at 12:46
diesel is taxed extra over in NZ depending on distance travelled
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Reply By: Bob Y. - Qld - Saturday, Mar 28, 2015 at 09:55

Saturday, Mar 28, 2015 at 09:55
Brian,

After many weeks of low fuel prices, I've noticed that both ULP and diesel have now risen to the same price in central Qld.

Prior to this last rise, diesel was a cent or two less than ULP. There has been a noticeable increase in number of 'vans and camper trailers travelling out this way, over past week or two. They would be enjoying the cheaper fuel, I'm sure.

Bob

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Can't remember most of it.

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AnswerID: 551696

Reply By: Bazooka - Sunday, Mar 29, 2015 at 15:28

Sunday, Mar 29, 2015 at 15:28
The Terminal Gate Price for ULP and diesel have only differed by a few cents for the last couple of months. With rare exceptions the Singapore wholesale price for diesel has been consistently lower than 95 over the same period.
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