THE INCREASING PRICE OF DIESEL...WHY?

Gday mate,

Diesel is much cheaper to refine because it's the least refined of all the fuels!

Somone within the industry may have an answer, but it's difficult to believe isn't it!

Cheers

Chris.

" Are the oil companies inflating the price of diesel to subsidise unleaded"

we have a winner.

Complaining to fuel companies about the price of diesel is like complaining to your mother in law about your wife. Truckster got it in one. : )
Jack

There is only one reason why Diesel is dearer than unleaded.
Because we are being ripped off with dozens of bleep ant excuses.
PS The govt likes the extra revenue as well so they won't do anything about it.
Not being political because the other side is just as bad.

All fuels are a rip off
I was told that we cannot refine the diesel here to the correct standard so we ship it off shore get it refined and bring it back.
Is this correct ?????
Then we pay 44 cents / litre in tax
what hope is there
Cheers
Tim

I didn't think Australia made any diesel fuel, the report I read it's all imported. Depends on the type of crude oil you have as to what you can get from it.

I borrowed this off the Overlander forum.

Quote:
The "crude oil" pumped out of the ground is a black liquid called petroleum. This liquid contains aliphatic hydrocarbons, or hydrocarbons composed of nothing but hydrogen and carbon. The carbon atoms link together in chains of different lengths.

It turns out that hydrocarbon molecules of different lengths have different properties and behaviors. For example, a chain with just one carbon atom in it (CH4) is the lightest chain, known as methane. Methane is a gas so light that it floats like helium. As the chains get longer, they get heavier.

The first four chains -- CH4 (methane), C2H6 (ethane), C3H8 (propane) and C4H10 (butane) -- are all gases, and they boil at -161, -88, -46 and -1 degrees F, respectively (-107, -67, -43 and -18 degrees C). The chains up through C18H32 or so are all liquids at room temperature, and the chains above C19 are all solids at room temperature.

The different chain lengths have progressively higher boiling points, so they can be separated out by distillation. This is what happens in an oil refinery -- crude oil is heated and the different chains are pulled out by their vaporization temperatures.

The chains in the C5, C6 and C7 range are all very light, easily vaporized, clear liquids called naphthas. They are used as solvents -- dry cleaning fluids can be made from these liquids, as well as paint solvents and other quick-drying products.

The chains from C7H16 through C11H24 are blended together and used for gasoline. All of them vaporize at temperatures below the boiling point of water. That's why if you spill gasoline on the ground it evaporates very quickly.

Next is kerosene, in the C12 to C15 range, followed by diesel fuel and heavier fuel oils (like heating oil for houses).

Next come the lubricating oils. These oils no longer vaporize in any way at normal temperatures. For example, engine oil can run all day at 250 degrees F (121 degrees C) without vaporizing at all. Oils go from very light (like 3-in-1 oil) through various thicknesses of motor oil through very thick gear oils and then semi-solid greases. Vasoline falls in there as well.

Chains above the C20 range form solids, starting with paraffin wax, then tar and finally asphaltic bitumen, which used to make asphalt roads.

All of these different substances come from crude oil. The only difference is the length of the carbon chains!

END:

Its all marketing (as a science) - the oil companies have people that study prices and sales trends - they would have worked out years ago that Aussie's love their cars and will cut back on other expenditure before they cut back on fuels. This would all be clearly evident in the market trends. My guess is that they think we will wear higher prices and maintain usage IF we think there is a fair cause behind the rises (Geroge W and Iraq etc). IF they think that we think they are simply ripping us off, they would drop their margins to win share etc. - nothing will change re their fully exploitative attitude until we all start buying less and staying home (gulp). Evidence of this exploitation is found in fuel being dearer from Thursday arvo's when skint people get their first (payday) opportunity to fill up.

Companies, big or small, exist for only one reason. Profit. The more the better. They are not a charity. They will say that "they have responsibilty to the shareholders", or in the case of small companies " provide for their kids." They have no moral values and we shouldn't expext them to have any.

Like with any bussiness, you sell your product for AS MUCH AS YOU CAN and the prices will be dictated by the old supply and demand.

The best way to half the cost of your fuel is to buy a suzuki swift (or become a shareholder in shell). If we are not prepared to do that, then we must pay the price.

THE INCREASING PRICE OF DIESEL...WHY?
Why does a dog lick it's balls?

R.

Or may-be the oil companies have seen the latest sales which show 24% of all vehicles sold now are 4WD's. I refuse to use the Yankism, "SUV". More diesels being sold than ever before so a good chance to make a profit.

Rolande

I was in the transport game at the beginning of the GST implementation and know that I was eligible for a fuel rebate of 26 cents per litre because the truck was over 26 ton. That is why the transport operators aren't hopping upa nd down.

I think this still is in place,.

Yes Pete, I have believed exactly what Truckster says for some years now. It is especially unsubtle around unleaded price war times. It hurts to know you appear to be funding the battle. What to do or what can be done about it by diesel consumers is the big question. Maybe someone through this forum can come up with a strategy to give diesel users representation through a form of lobby to Govt.
In the interim I disregard shopper dockets and support the GULL over here in WA as they are consistently cheaper and fairer than the big outlets. There is a BP just down the road charging 113.9 c/l today and is always way above GULL Wangara or Kingsway. I would rather drive 10Km to buy diesel and unleaded from nearest GULL than from those other robbing barstewards. Mustering other consumers to make some kind of stand, at the very least symbolic, is another matter. Most people are either too lazy to be more selective in choice of supplier or have defeatist attitude and always think nothing can be achieved against the big boys -and girls.
Makes me wonder how we Aussies ever found those brave fellas to halt the nips on the Kokoda Trail. Thanks again to those who didn't give up.
DRC

Theoretically diesel is cheaper than petrol to make. However, there is one complication - crude oil has sulphur in compound form and when you refine the crude sulphur concentrates in the heavier ends - petrol ~c8, diesel ~c10.

The government have placed strict limits on sulphur content on fuels and it is getting stricter. Therefore as diesel attracts sulphur it costs a fortune to remove it.

Also, petrol stockpiles are probably greater than diesel stockpiles so petrol can adsorb the swings in oil prices but diesel is slugged straight away as crude on the market makes it to your tank quicker.

Oil price is up to US$50 per barrel so be prepared for higher costs in the future.