Petrol Prices (Up they go)

Submitted: Wednesday, Apr 12, 2006 at 13:30
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Easter usually brings about two things with great certainty. The Easter Bunny with baskets laden with chocolate eggs and petrol price increases just when you are about to fill the tank and head bush.

Well, maybe we should be thankful for the ‘cheap’ price of petrol, even if it is approaching nearly $1.50 a litre, at least you might be forgiven for taking this line of thought after reading the following article.

It is quite lengthy, but a worthy read. Some may be familiar with the issue, others may not be; many will disagree with the arguments. One thing is for sure though – the price of oil isn’t going to become cheaper anytime soon due to the demand / supply equation being out of equilibrium.

Enjoy the read if you take the time…….

www.lifeaftertheoilcrash.net/

Regards
Landie
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Reply By: Member - Blue (VIC) - Wednesday, Apr 12, 2006 at 13:45

Wednesday, Apr 12, 2006 at 13:45
When are we all going to come to terms with the fact that petrol going up extraordinarily just before a major holiday is simply a coincidence... The ACCC has swallowed it so why shouldn't we...???
AnswerID: 166660

Follow Up By: Scoey (QLD) - Wednesday, Apr 12, 2006 at 13:56

Wednesday, Apr 12, 2006 at 13:56
I don't think the article was talking about prices at easter but more a long term look at oil prices etc. The reference to fuel prices at easter I think only prompted the post as a discussion. The only people who see the phenomenon you describe as coincidence are the ones that are selling the fuel or being otherwise forced to toe the company line.

Cheers
Scoey
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Follow Up By: Laura B - Wednesday, Apr 12, 2006 at 14:20

Wednesday, Apr 12, 2006 at 14:20
Can I please urge everyone to not say anything about fuel prices to service station workers - we get enough crap off the locals and it really gets up our goat ... we cannot change the price of fuel unless told through our consoles off the big bosses and we do not get discounts just ecause we work there ....we hate paying the price of it too but like i say to everyone who has a whinge at me about the price......

"get over it or walk" or "if you dont want to pay it then dont - no one is forcing you to come here!!" or "go and buy a good pair of Nikes - you'll lose weight too!"

please remember us workers that have to put up with this whinning from all who come in.....

just my 2 bobs worth,

Laura B
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Follow Up By: Member - Blue (VIC) - Wednesday, Apr 12, 2006 at 14:34

Wednesday, Apr 12, 2006 at 14:34
Scoey, couldn't open that site from work so I just thought I'd add some mindless dribble to the argument... I've been bombarded by soundbites of some oil boss on the radio for the past week... "The price has not been raised to take advantage of easter, it is merely a coincidence that the price of oil has risen at this time"(or words to that effect)... The same dribble we hear every holiday when the usual hike of 5-7c becomes 15-17c just before the hols...

Laura, not hanging it on the outlets, I used to work at one and understand that the orders come from far above... I actually bought myself a pair of Reeboks and I am losing weight... Really...
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Follow Up By: Scoey (QLD) - Wednesday, Apr 12, 2006 at 14:42

Wednesday, Apr 12, 2006 at 14:42
haha! Yeah fair enough Blue - I wasn't having a go at you, actually on re-reading my post, I don't know that even I made much sense! ;-) Geez I need this weekend - fast!

Hey Laura - never have put cr*p on the console operators for the prices - I have copped my fair share of digs from pimply faced high school students behind the counter about how much the fuel prices must be hurting me havnig to put in 150L at a time! haha! It's all good but! ;-) I learnt long ago that I will never have the opportunity to tell the people that actually make the decisions what I think - and that goes for Fuel prices - Telco's - Insurance Co's etc etc Just the poor sap on the front line!

Cheers
Scoey!
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Follow Up By: Laura B - Wednesday, Apr 12, 2006 at 14:43

Wednesday, Apr 12, 2006 at 14:43
not sure about where you live but here the hike hasnt been much at all....we usualy sit around the 1.33 mark and it hasnt gone up yet...but have heard it will to 1.39 within the next 36hrs.....

i got myself those new balance ones and it has finally taken 2 kids andd 3 yrs to lose some weight!!LOL!! Good work!!

Laura B
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Follow Up By: Laura B - Wednesday, Apr 12, 2006 at 14:50

Wednesday, Apr 12, 2006 at 14:50
glad to hear it!

IMHO its always those who have the most money are the most tight ass!! Really!!

Im the same with people saying stuff to me about the 4b....filled up my last car (ford futura) at another servo and the guy said to me that i must hate filling her up(68lt) - i told him i was trading her in for an 80(didnt tell him it was on lpg) and he just laughed at me!! but if i was going to have a whinge about the cost of filling our big gir up then i wouldnt have a bought her!!

we always oay for fun dont we us humans!!LOL

Laura B
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Follow Up By: Scoey (QLD) - Wednesday, Apr 12, 2006 at 14:57

Wednesday, Apr 12, 2006 at 14:57
Yea I reckon if you want fuel economy in a fourby then but a Jimny or something! haha! I do get a chuckle from the people that go and buy a Patrol or Cruiser etc and go tow a 25ft Caravan and then go to amazing lengths to try and make it more economical! haha! *ducking for cover now!*

haha! Cheers
Scoey!
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Follow Up By: Member - Glenn D (NSW) - Wednesday, Apr 12, 2006 at 18:42

Wednesday, Apr 12, 2006 at 18:42
Just paid $1.39 for diesel in southern Sydney cause the light was on , then drove past a station with fuel for $1.30 , D'OH

At least I dont have a V8 . ( any more )

Glenn
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Reply By: Pajman Pete (SA) - Wednesday, Apr 12, 2006 at 13:58

Wednesday, Apr 12, 2006 at 13:58
Oh thanks Landie - a horror story just before I jump into the 4BY and head off to the Flinders.

:o)

Pete
Any mug can be uncomfortable out bush

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Follow Up By: Member - Landie - Wednesday, Apr 12, 2006 at 15:13

Wednesday, Apr 12, 2006 at 15:13
Whoops, enjoy your trip.
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Reply By: Scoey (QLD) - Wednesday, Apr 12, 2006 at 14:06

Wednesday, Apr 12, 2006 at 14:06
Hi Landie,

A very interesting article - thanks for the link! It's a pretty scary look at things to come even if it's remotely true! The article conjured all sorts of images reminiscent of "A Brave New World" haha! Thankfully I filled up this morning for the Easter trip at $1.11 (ULP).

Cheers
Scoey!
AnswerID: 166667

Reply By: Hun - Wednesday, Apr 12, 2006 at 14:37

Wednesday, Apr 12, 2006 at 14:37
Interesting Read.....But you're forgetting there are biofuels available. There is a country in europe that is almost self sufficient and doesn't need that expensive stuff we all rely on.If our governments had a bit more forsight and didn't thrive on greed we also could get into such a position....Just a dream

Hun
AnswerID: 166675

Follow Up By: Scoey (QLD) - Wednesday, Apr 12, 2006 at 14:44

Wednesday, Apr 12, 2006 at 14:44
I realise the article had a rebuttal for just about every arguement against it but it did go on to point out that our processes at some stage or another rely on oil, and that includes the production of bio-fuel.
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Reply By: Snowy 3.0iTD - Wednesday, Apr 12, 2006 at 14:38

Wednesday, Apr 12, 2006 at 14:38
Landie

There is little doubt that one day society will be forced to move away from its oil dependancy, how traumatic this will be depends on how much development in other technologies there has been by that time.

I must admit I do disagree with the predictions that doomsday is just around the corner. Ofcourse oil executives are going to talk up supply fears, it drives the cost of crude up and their profit margins along with it. The current spike in world prices I believe is just that, a spike it may last a year or two, but when you look at all the factors that have lined up to create that:

1) China is in the middle of construction boom, granted it will never be the same again, but nor can its economy afford to keep consuming resources at the rate it has been doing for the last 3-4 years forever. The government will eventually have to pull it up or risk a financial collapse when world banks refuse to extend anymore credit.

2) The majority of the worlds currently easily reachable oil supplys are in one of the most politically unstable regions of the world. The torrent of oil that use to flow from Iraq has dried up to a trickle, because the oil companies have shut down their operations there due to the war. Iran is now talking about cutting off its supply to the west.

3) The very latest off-shore oil-rigs can only operate in up to a 1000m of water, when you consider the average depth of the Pacific, Indian and Atlantic oceans, that leaves an awful lot of unexplored territory.

I don't think we are likely to see fuel under a dollar a litre ever again, but I do think a world wide melt-down next year sounds more like scare-mongering to me.
And yes I do realise I have probably just made myself a target for people to fire their criticisms at, FIRE AWAY.

Kind Regards

Snowy
AnswerID: 166676

Follow Up By: Scoey (QLD) - Wednesday, Apr 12, 2006 at 14:54

Wednesday, Apr 12, 2006 at 14:54
I agree to a point Snowy. I think you have the diabolical view that the author of tha article puts forward and then you have the extreme conservative view that everything will be alright - the Govt will look after us. i think the "truth" for want of a better word lies somewhere in that murky gray area in between! What do they say? Ignorance is bliss? haha! I'm gonna fill up my "Gas guzzling SUV" and head off for the weekend camping! ;-)

Cheers
Scoey!
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Follow Up By: Member - Landie - Wednesday, Apr 12, 2006 at 15:12

Wednesday, Apr 12, 2006 at 15:12
Hi Snowy

Certainly food for thought, although the article doesn't suggest it will happen next year.

I don't want to stand in support or otherwise of the views presented in the book. However, in relation to your points.

I think it is a simplistic argument to say that oil company executives talk up the supply fears simply to bolster profits. In fact, as argued in the article, they are doing exactly the opposite and not talking about the supply concern and are spending money trying to quash the notion. Lest they might cause the price of oil to push to higher levels prematurely.

China may well slow down their pace of GDP growth, however that rate of growth will remain extremely high. The demand for energy from China will not diminish and in fact will only grow. The arguments that could be put forward in support of this will bore must to tears if expanded in this forum.

I'll accept your view on the oil rigs, but the point of the argument that is being used is the cost of exploration in these 'unexplored' areas will push the price of a barrel of oil through the roof in any case.

But one critical factor that stands out to me is that there has been a lack of investment in new oil refineries around trhe world. This in itself is why the price of the refined product (petrol) is pushing higher constantly. Sure, the price of oil is a major contributor, but that aside if there is a shortage of refining capacity globally that in itself will push petrol prices higher. The bigger message (or question) to take away from that is surely if demand for refined oil products is going to increase substantially over the next few years why isn't anyone willing to commit to the capital cost of new refineries?

Regards
Landie
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Follow Up By: Member - Glenn D (NSW) - Wednesday, Apr 12, 2006 at 18:46

Wednesday, Apr 12, 2006 at 18:46
Yes , I bet thats what every CEO around does , talk the price of their product down !
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Follow Up By: Member - Landie - Wednesday, Apr 12, 2006 at 18:55

Wednesday, Apr 12, 2006 at 18:55
Hi Glenn

Have a read of the article to get the full context. I'm not suggesting they are talking down their product, but they certainly are not talking up the supply concern. The article expands on it more fully.

I'm not endorsing the article one way or the other.......just relaying it.

Regards
Landie
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Reply By: Scubaroo - Wednesday, Apr 12, 2006 at 14:57

Wednesday, Apr 12, 2006 at 14:57
Does anyone else here cart a jerrycan or two down to the servos on cheap days (usually Tues night in Melb) and fill them up to avoid the price hikes? Might only be 20L or 40L extra you're buying, but it's often enough to escape being forced to buy petrol when it's just jumped up - if petrol has just jumped up in price and I need fuel, I'll pour the jerrycan in rather than go down to the servo and get gouged. Got the jerrycans on special at Rays Outdoors, and they've paid for themselves already just with driving around town and weekend trips. If petrol is currently 10c/L higher than when you filled the 20L jerry, you've saved $2 in fuel costs. 15c/L = $3 saved. Usually for me the extra fuel is enough to get by until the end of the discount cycle again, when I refill the tank and the jerrycan(s). Might just be a gold coin each time, but they add up!

Think of it as buying in bulk when petrol is on "sale" (at the end of the discounting/rip-off cycle).
AnswerID: 166684

Follow Up By: RupertDog - Wednesday, Apr 12, 2006 at 15:18

Wednesday, Apr 12, 2006 at 15:18
Scubaroo

Do it all the time. Add the bottom of the price cycle to the 4c discount vouchers and it makes it even cheaper.

Sometimes Liquorland does a 20c off deal, and looking at filling a couple of jerry cans next time that is on. I believe it can be to a max of 150lts, in one vehicle (inc jerry cans).

Only concern is does the petrol go off, as many believe? If so, how long will it last before it is off?

RD

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Follow Up By: Scubaroo - Wednesday, Apr 12, 2006 at 15:55

Wednesday, Apr 12, 2006 at 15:55
Yeah, I reckon I bought the jerrycans using the savings made with those FlyBuys 10c/L discount vouchers - total of 14c/L. Have also done the Liquorland 20c/L thing.

Given that I would use the jerrycans each fortnight or so, I'm not worried about the fuel "going off". Dunno how long it takes (or if it even happens) but we used to have unleaded fuel sitting around on the farm for up to 12 months before it was used in chainsaws, water pumps etc.
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Follow Up By: Member - John L G - Wednesday, Apr 12, 2006 at 16:30

Wednesday, Apr 12, 2006 at 16:30
I have about 300 Ltres in tanks in the cruiser and yes of course I fill up when the price is down - makes sense methinks even if it is a few cents a litre.

Anyone bothered to work out how much extra income the oil companies actually make during these holiday breaks. I would reckon a 1c/litre increase across Australia at this time would give a massive boost to the bottom line, let alone the 7c/litre we are about to experience.
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Reply By: Willem - Wednesday, Apr 12, 2006 at 20:49

Wednesday, Apr 12, 2006 at 20:49
The trouble is, that it is but a prediction based on some true facts and maybe other perceived facts.

If we could see into the future we could alter our life plans.

Failing that, we should just take it on the chin and change our lifestyles accordingly.
AnswerID: 166772

Reply By: 1arm - Wednesday, Apr 12, 2006 at 22:42

Wednesday, Apr 12, 2006 at 22:42
Just checked fuel watch website in WA for sites around home.
Most are actually dropping price of petrol and gas for thursday down to around $1.23 and 53c for gas
AnswerID: 166802

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