Petrol more expensive than diesel.

Submitted: Thursday, Jun 04, 2015 at 10:05

ThreadID: 119079 Views:3062 Replies:4 FollowUps:4

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Dennis Ellery

Haven't seen this for many years
I don’t know whether this is an aberration or a sign of things to come.
Perth average prices this morning unleaded petrol $1.42, premium $1.54, diesel $1.36

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Reply By: Bob Y. - Qld - Thursday, Jun 04, 2015 at 10:18

Reply By: Robin Miller - Thursday, Jun 04, 2015 at 10:54

Thursday, Jun 04, 2015 at 10:54

Here in Knox Melbourne , it has on average been cheaper as well Dennis and its going to be for a while, gas also has made a comeback with better pricing.

However here at the lowest point in the cycle petrol is a cent or 2 cheaper, today diesel is 1.269 and perol 1.247 , Near Bendigo in country it was 1.195 , go figure ?

Robin Miller

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Follow Up By: Dennis Ellery - Thursday, Jun 04, 2015 at 11:56

Thursday, Jun 04, 2015 at 11:56

Yep I agree Robin
I’m no economic guru – but it may a sign of the future – big industrial users are facing leaner times and demand for diesel is down.
I remember in 2008 I paid around a $1.60 for diesel in Perth, when the gurus were predicting it would go past $2 - farmers were complaining about the recreational user, saying diesel should be saved for industry.

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Follow Up By: Geepeem - Friday, Jun 05, 2015 at 19:04

Friday, Jun 05, 2015 at 19:04

Its also the northern hemisphere summer and the demand for heating oil is diminished. Heating oil and diesel are alternative by products of petroleum fracking. We live in a global petroleum market and there is always a surplus of diesel available in our winter effecting prices out of Singapore and other markets. Come our summer again (northern winter) you will find diesel is again dearer than petrol.

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Follow Up By: Member - Boobook - Saturday, Jun 06, 2015 at 08:05

Saturday, Jun 06, 2015 at 08:05

Geepeem, As much as your statement seems to make sense and is historically right, I don't think logic like that works any more.

Take a look at this graph

Singapore 5 Year Petrol vs Diesel wholesale price

There is no correlation between the diesel price and winter. Actually petrol was affected more this year. You can change the time scale on the top left. Also Diesel has been cheaper for most of those 5 years, opposite to what happens at our pumps over that period.

Add to that the fact that diesel is a lot less expensive in most countries, I can only guess it is the local oil companies exploiting the Australian market because they can. I think demand from mining dragged the oil price up here, and now that little earner is going away for the oil companies. Thank god. Where the hell is the ACCC?

Of course this is only a conspiracy theory. LOL

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Follow Up By: Geepeem - Saturday, Jun 06, 2015 at 14:45

Saturday, Jun 06, 2015 at 14:45

Well yes there are many other factors impacting prices now as well with volatile markets and economies. The correlation is not always clear anymore.
I agree with you in regards ACCC. They are completely useless and should be disbanded. In the past 10 years all they have done is bullied Telstra and fined Coles for selling old bread. What a joke. We need a new consumer advocate that has real teeth and powers to tackle the big issues in our economy.

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