Diesel prices

Submitted: Friday, Jan 06, 2006 at 16:30
ThreadID: 29417 Views:2405 Replies:6 FollowUps:3
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This is not good news but maybe explains some of the pricing.

Diesel prices predicted to rise

Diesel prices are set to rise further this year as world demand increases, without any increase in refining facilities.

The main problems stem from China and India, where increasing numbers of farmers are using diesel to fuel generators on their properties, and there is strong demand from mining and construction.

Analysts also say European vehicle manufacturers are designing much of their emission-reduction technology around diesel, rather than petrol, engines.

Peter Scott from Shell says the boom in Asian economies means the world is using more diesel than ever before.

"There's a lot more demand for crude oil and related products," he said.

"So all sorts of oil products, particularly petrol and diesel, are just being sought after more in the world and, in particular, many people know about the boom in China and Asia where more of these products are being used."

But chief economist with JP Morgan, Stephen Walters says the oil companies could improve the situation by building more refineries.

"The last refinery built in the US was in the 1970s and therefore when there's a problem with bottlenecks like late 2005, we had the hurricane in the US clearly wiped out a lot of the refining capacity, what we saw was a huge shortage of crude oil," he said.

"Therefore the price goes up to $70 a barrel and we saw prices in Australia at the pump go up to $1.40 and yes part of the problem is the refining capacity is just limited."

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Reply By: Member - Nobby - Friday, Jan 06, 2006 at 16:42

Friday, Jan 06, 2006 at 16:42
Thanks for the good news Wim. Goes in keeping with the rest of the week. Are you going on the 4/5th to Kenilworth?. Nobby
AnswerID: 146826

Reply By: Hun - Friday, Jan 06, 2006 at 17:28

Friday, Jan 06, 2006 at 17:28
Thanks for that.
Not good news,but what can one do.
All that means to me..The new Fourby goes on the backburner....Sorry Toyota..
Sorry Car Industry...My Hilux becomes a permanent member of the family.

AnswerID: 146836

Follow Up By: Nudenut - Friday, Jan 06, 2006 at 18:09

Friday, Jan 06, 2006 at 18:09
dont mean to offend...but if we all followed what your contemplating the world will stop spinning!
FollowupID: 400304

Reply By: DesC - Friday, Jan 06, 2006 at 18:32

Friday, Jan 06, 2006 at 18:32
AnswerID: 146848

Reply By: blackmax11 - Friday, Jan 06, 2006 at 22:04

Friday, Jan 06, 2006 at 22:04
Just arrived back from Brisbane and Gold Coast to Sydney (by air).

What I found interesting re fuel prices was that unleaded and Diesel were around Sydney prices. Now the Qld Government allow a 8 cents a litre tax reduction on fuel, which means the Oil companies are not passing it on right now.

Holiday time, lots of interstater's, used to paying more than Qld people, rip the motorist off.

How come governments don't do something? In cohoots with big business, that's why.

Why is diesel more expensive than unleaded when its less expensive to refine? I believe commercial users, farmers, truckers etc get a substantial reduction on their diesel cost, so once again the greedy oil companies up the price above unleaded. We everyday diesel users pay the extra, no rebates for us.
AnswerID: 146893

Follow Up By: bombsquad - Saturday, Jan 07, 2006 at 00:19

Saturday, Jan 07, 2006 at 00:19
MMM.......been paying over $1.50 for quite a while, sometimes I'm (wrongly) not too sympathetic to people complaining about $1.20. A mate in the farming industry did a few sums and worked out he could produce ethanol for abbout $0.25. This includes all costs, market value for his sugarcane etc. I dont know if he has missed anything (government fees and oil company market monopolising) He also worked out he could freight fuel into town from the territory and save a few cents per litre.

Things like this give me little faith in oil companies etc. While I am a capitalist thru and thru, and supply and demand should determine price, I think we are all being taken on a ride...

FollowupID: 400389

Follow Up By: Motherhen - Saturday, Jan 07, 2006 at 00:20

Saturday, Jan 07, 2006 at 00:20
Because petrol is high profile and subject to very competitive pricing; they then hike the diesel price to make a profit - that's the fuel-watch story.

Rebate is paid only for diesel used off-road (eg in the tractor out in the paddock, on the mine site or whatever), just the road maintenance tax portion. Diesel is a huge slice of the annual cost of farming (particularly broad acre cropping) on and off road, and increases are crippling the industry. Not only do we pay extra to get our produce off the farm to market, we pay to have goods/stock etc brought in, and cop higher prices due to increasing cost of getting goods out into the country towns - triple whammy. We have to travel greater distances than city people for anything, town, business, school, medical etc - quadruple whammy.

I have been told in Europe it is sold much cheaper than ULP because as we all know, it is cheaper to refine. I don't have the solution, but making fuel out of sugar cane or wheat straw or whatever seems like a good idea, instead of the Govt throwing millions at the sugar industry to keep it viable, give it something else towards making it viable.

As diesel users we are not getting a fair deal compared to ULP.

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Reply By: madCrow - Saturday, Jan 07, 2006 at 03:37

Saturday, Jan 07, 2006 at 03:37
Hi Wim
Merry xmas & hope you have a great new!
Pleasantries aside, I was very interested to note the observation you made that "the main problems stem from China and India, where increasing numbers of farmers are using diesel to fuel generators on their properties". You can also include factories ie: manafacturing plants, sweet shops etc., etc. into the equation.
The cause/reason for the excessive use of generators in China is know but barely ever discussed.
Basically it's China's electrical power supply system is so bad that it breaks down regularily, I don't mean yearly, monthly, or even weekly, across china it happens multiple times per week.
So to maintain a consistent production line factories & the like have their own power generators to come on line when the state elctricity with fails. (compared to Aussie hydro-electric generated electricity)
This is a major consumer of desiel, so maybe some heads of our great nations, like the prime minister JWH or the president GWB could spend some time, knowledge & money on making China's electrical power system work properly 24/7.
That would certainly ease the unnecassary sucking of oil into china, thus easing if only for a moment our gultony of oil.

the madCrow has spoken, thank you, thank you, thank you very much!
AnswerID: 146933

Reply By: rolande- Saturday, Jan 07, 2006 at 08:15

Saturday, Jan 07, 2006 at 08:15
Hasn't the story for the past five years been that as there is more competition in the petrol market than the diesel market, petrol discounts have been greater. Now they are saying diesel prices are going to be higher because if increased demand.

Doesn't add up to anything more than profiteering by the oil companies again.

AnswerID: 146940

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