Cost of Diesel V's Petrol

Submitted: Thursday, May 04, 2006 at 15:58
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Simple question, may not have a simple answer....

Can anyone explain to me why Diesel is 12.9c/L more expensive than unleaded?

At $1.51/L for diesel, im considering trading the 80series in for a 250 bike and towing the Mrs and kids in a trailer........

NUTS!
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Reply By: Member - Oldplodder (QLD) - Thursday, May 04, 2006 at 16:09

Thursday, May 04, 2006 at 16:09
It used to be cheaper.

But then we are told it is a priced/rarer commodity, and if isn't a northern hemisphere winter, China is going flat strap :-((.

I reckon they the refiners are just trying to get back some of the millions they spent on upgrading refineries for low sulphur (500ppm) and ultra low sulphur (50ppm).

The pollution particle size produced is a lot smaller so you can't see it, and you can absorb the particles more easily in the lungs.

But then we do get common rail diesels now, and better economy.
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Follow Up By: Shaker - Thursday, May 04, 2006 at 16:15

Thursday, May 04, 2006 at 16:15
"But then we do get common rail diesels now, and better economy."

..... and that, quite simply, is why it is dearer!
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Follow Up By: Member - Marquis - Thursday, May 04, 2006 at 16:22

Thursday, May 04, 2006 at 16:22
It's interesting that the new VW golf TD gets 5L/100km on H/w and 7L/100km around town. I heard on Top Gear show that (what's his name?) said the small VW polo? TD obtain in the 3 to 4 L/100km in fuel use

I cannot complain about the DiD pajero
8.5L/100km typical on H/W
12L/100km around town

compared to the V6 Rodeo
13L/100km typical on H/W (empty)
22-25L/100km around town.
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Follow Up By: Member - John L G - Thursday, May 04, 2006 at 16:33

Thursday, May 04, 2006 at 16:33
I hate to sound a tad cynical here, but it would seem that the rise in fuel costs is being kept apace with the increase in fuel economy in new engine technolgies.

To take it to a ridiculous, but perhaps logical conclusion, we may find ourself driving cars that do the expected tankful distance that we currently enjoy on 1 litre of fuel for $70.00 versus the now tankful of 50 litres for $70.00.

For those who can't afford to keep upgrading vehicles - Tuff Bickies methinks.

Either way, they win.
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Reply By: Member - Jay Gee (WA) - Thursday, May 04, 2006 at 16:26

Thursday, May 04, 2006 at 16:26
Oil company problem - How to lessen impact of rising prices on the majority of customers

Oil company solution - Don't pass on full cost rise to petrol and compensate by passing on more cost rise to diesel
AnswerID: 170666

Follow Up By: Motherhen - Thursday, May 04, 2006 at 19:47

Thursday, May 04, 2006 at 19:47
Spot on - because there are less of us than ULP users, we are subsidising the price of Petrol. This is the explanation on our government fuel watch website.
Motherhen

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Follow Up By: Gerhardp1 - Thursday, May 04, 2006 at 22:07

Thursday, May 04, 2006 at 22:07
That sounds like rubbish to me :)
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Follow Up By: NUTS! - Friday, May 05, 2006 at 00:59

Friday, May 05, 2006 at 00:59
Do some reading Gerhard, Your dead right Mother hen, but as a minority what can we do about it? SFA!
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Follow Up By: NUTS! - Friday, May 05, 2006 at 00:59

Friday, May 05, 2006 at 00:59
Do some reading Gerhard, Your dead right Mother hen, but as a minority what can we do about it? SFA!
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Follow Up By: Motherhen - Friday, May 05, 2006 at 12:01

Friday, May 05, 2006 at 12:01
90% of cars in WA run on ULP according to the fuel watch website. A couple of days ago bulk diesel delivered on farm for the tractor was 1.51 per litre. Today diesel in town ranges from 148.9 at bulk depot to 152.9 at the local servo, which has normal driveway services. We in the country are hit multiple times - higher costs of production (and grain price is way down), higher cost of goods coming in to the rural areas, higher cost of freighting our produce out, higher cost of getting our supplies in (eg fertilisers, livestock etc). Yet those little mobile wheelbarrows running on ULP in the city seem to rule the roost by sheer numbers.

To me the oil parity price policy is nonsense - that is at the political end of the scale. I don't hold the poor servo franchisee accountable at all - many of them are having a hard time.
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Reply By: cokeaddict - Thursday, May 04, 2006 at 16:29

Thursday, May 04, 2006 at 16:29
Dont laff NUTS....
I have been thinking seriously about getting a road bike myself ( sorry i sold my brand new WR450F last year now). In fact, I think I will end up doing just that. Sure will save me heaps in fuel expenses too, Only use the old girl for trips cause fuel prices are not comming down .....so better get used to it guys.
AnswerID: 170667

Follow Up By: NUTS! - Thursday, May 04, 2006 at 16:51

Thursday, May 04, 2006 at 16:51
Yep, i hear ya, shouldnt have sold my last TTR600....now looking at:
2001 DR250, 6000kms on clock, $3990, runs on oily rag, elec start, boaring but good in traffic. Its just the -3degree mornings on a traily that hold me back.

NUTS!
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Follow Up By: Sand Man (SA) - Friday, May 05, 2006 at 01:04

Friday, May 05, 2006 at 01:04
Does anyone produce a two wheel drive bike with a low range?

I'll have one:-)
Bill


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Reply By: TerraFirma - Thursday, May 04, 2006 at 16:33

Thursday, May 04, 2006 at 16:33
It's an absolute rip off and a con, and now because of he price of diesel going up transport costs of just about everything are going up cos allthe trucks use diesel. Gas doesn't cop it so go figure.
AnswerID: 170668

Follow Up By: Trevor R (QLD) - Thursday, May 04, 2006 at 17:54

Thursday, May 04, 2006 at 17:54
Gas will cop it when the govt. brings in their "gas exise" about 2008 I think. (that's my understanding).
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Reply By: NUTS! - Thursday, May 04, 2006 at 16:45

Thursday, May 04, 2006 at 16:45
In the last two days Diesel has jumped from $1.42 to $1.51.....IN TWO DAYS????

I found this comment on fuel company web site:
'Because retail demand for diesel is much lower than ULP it is not subject to the same competitive forces as ULP and retail prices tend to be more stable.'
But i fail to see how a 9c jump in two days is stable......

Anyway, I worked out the savings in paying for parking and fuel savings, if I loan $6000 to buy a bike and keep both cruiser and bike registered all year round, i will be breaking even.

There is no other answer to my problem that i could find...I need the 8 seater 80series to fit the kids in, so 4cyl dual cabs are out of the question, i looked at delicia but apparently they use 12 to 14L/100 anyway, the 80series uses 13-14L/100 and pulls the camper much more easily than a 2.8td. I wish i had the $$ to buy the new Pajero, good power and economy, im jealous Marquis....!

Anyway, motorbike it will be, even through the Canberra winter with -3 degree morning commute to work.

NUTS!
AnswerID: 170671

Follow Up By: Pajman Pete (SA) - Thursday, May 04, 2006 at 18:29

Thursday, May 04, 2006 at 18:29
That brought back memories of the Kawasaki in Canerra. Up the Eastern Parkway and around the base of Black Mountain on the black ice :o( then on to work and thaw the ice out of my beard!

I still remember moving from Darwin to Canberra in October 86. The max temperature in Canberra for the first two weeks did not meet the minimum we experienced in 4 years in Darwin.

But then there are those fantastic autumn and spring days.

Cheers

Pete
Any mug can be uncomfortable out bush

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Follow Up By: NUTS! - Friday, May 05, 2006 at 01:16

Friday, May 05, 2006 at 01:16
AAAaaah the infamous Black Mountain shadow!!!!!! been cought a few time myself, its a bit of a phenomenon you can actually feel the 5 degree drop in that 500m section of road!

The silly part: I aint movin for quids! close to the mountains, close to the sea, i know exactly what season it is when I look out the window (when i have one, im working in a basement at the moment) and the women are all stuck up beyond belief......what a playground!

NUTS!
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Follow Up By: Pajman Pete (SA) - Friday, May 05, 2006 at 17:11

Friday, May 05, 2006 at 17:11
We loved living there but then work took us away. I still miss cycling to work in autumn, especially the run around the lake to Russell. I was sitting in a meeting not long after I arrived and lost track of what was going on as I was watching snow flakes drifting past the window in the late afternoon sun across my view of the lake. Lovely!

Getting up in the morning and looking out the window at the snow on the Brindabellas was special too.

When we relocated from Nelsons Bay NSW, Canberra was number 2 on the list after Adelaide.
Any mug can be uncomfortable out bush

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Reply By: Leroy - Thursday, May 04, 2006 at 16:51

Thursday, May 04, 2006 at 16:51
here bills.......here boy...cmon....

Leroy
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Follow Up By: Wombat - Thursday, May 04, 2006 at 20:42

Thursday, May 04, 2006 at 20:42
He must be out doing more "testing", Leigh.
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Follow Up By: Leroy - Thursday, May 04, 2006 at 20:47

Thursday, May 04, 2006 at 20:47
testing schmesting........HA

Leroy
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Reply By: Barnesy - Thursday, May 04, 2006 at 17:20

Thursday, May 04, 2006 at 17:20
Have heard that Australia sets the price for diesel from Indonesia, for some reason. Maybe thats where the supply chain comes from. As Indonesia doesn't use much diesel it is a more expensive commodity.

I wonder what the relative cost would be to unleaded if we got diesel from Europe where i think 50% of new passenger cars are diesels?

Don't want to get too political but the price of crude oil has skyrocketed since the 2003 invasion of Iraq. I know there are other factors such as China's and India's higher demand, but is it more than a coincidence about Iraq?

Whereas biofuels are better because they're renewable, there are the added complications of ground clearing, higher water usage and increased pesticide use that would be needed to grow the extra crops.

Until solar or salt water powered cars are freely available then the cost of transport will only continue to increase.

Barnesy
AnswerID: 170681

Reply By: Richard W (NSW) - Thursday, May 04, 2006 at 17:30

Thursday, May 04, 2006 at 17:30
Price today in Sydney was between 1.42 and 1.50/L for diesel. Those servos with the discount coupons were the ones with the highest price. Luckily I had a 20c/L discount coupon but 112 Ltrs hurts.
AnswerID: 170684

Follow Up By: Trevor R (QLD) - Thursday, May 04, 2006 at 17:59

Thursday, May 04, 2006 at 17:59
Do the miles in an old technology 4.2 patrol and that 112lt's hurts even more. I'm not complaining just pointing out the facts. I would be thankful for the fuel economy you get but just want it in my Patrol....

Cheers Trevor.
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Reply By: Brew69(SA) - Thursday, May 04, 2006 at 17:58

Thursday, May 04, 2006 at 17:58
I filled up for 39.7 this week. But lpg is no good they tell me.
AnswerID: 170687

Follow Up By: Mad Dog (Australia) - Thursday, May 04, 2006 at 19:58

Thursday, May 04, 2006 at 19:58
hey man this aint right. I paid more than you in Vic the other day. WE MUST HAVE AN INVESTIGATION INTO THIS :)
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Follow Up By: awill4x4 - Thursday, May 04, 2006 at 21:11

Thursday, May 04, 2006 at 21:11
Yep, I payed 41 cents/litre this morning (Vic) then the 4 cents shopper docket. Almost, but not quite makes you feel a little bit guilty eh Brew?
Gotta love this bbq gas stuff.
Regards Andrew.
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Reply By: Mad Dog (Australia) - Thursday, May 04, 2006 at 18:00

Thursday, May 04, 2006 at 18:00
Another group therapy thread.
Now, does everyone feel better.
AnswerID: 170688

Follow Up By: Gramps (NSW) - Thursday, May 04, 2006 at 18:04

Thursday, May 04, 2006 at 18:04
hahahahahaha Ray. Somebody had to do it :))))))))

Regards
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Follow Up By: Mad Dog (Australia) - Thursday, May 04, 2006 at 19:55

Thursday, May 04, 2006 at 19:55
lol, if it feels good then it's gotta be good for us.

I don't buy the stuff but I'll get out in the streets in support if it came to that.
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Follow Up By: Wombat - Thursday, May 04, 2006 at 20:58

Thursday, May 04, 2006 at 20:58
Maybe we should have one of those infamous group cuddles!
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Reply By: macca172 - Thursday, May 04, 2006 at 18:04

Thursday, May 04, 2006 at 18:04
As I have said in previous posts, re the onging increasing costs of fuel in this country,"let you pencil guide you when you tick the boxes at the next general election"!

Pricing parity has to be abolished!

Macca
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Follow Up By: Mad Dog (Australia) - Thursday, May 04, 2006 at 19:53

Thursday, May 04, 2006 at 19:53
I hear you Macca. What boxes do you suggest we tick ?
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Follow Up By: cokeaddict - Thursday, May 04, 2006 at 20:07

Thursday, May 04, 2006 at 20:07
Actually, Macca is on the money Ray,

In the "fiardinkum" department what we need is a new political party that represents the average joe blow. Easy said, but almost impossible to do. We need a group of smart individuals to start organising themselves and get radio time to let us know what they plan to do. Hoping its for the good of us all. fixing hospitals and roads and a damn good accountant who can find out where all our tax money is really going. A party that will abolish all the lerks and perks that pollies have when they retire is a good start.

Damn ..im dreaming again.....bakc in my hole.
Ange
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Follow Up By: macca172 - Thursday, May 04, 2006 at 21:54

Thursday, May 04, 2006 at 21:54
Yes I agree with you 100%, this country is crying out loud for a third party option. One Nation tried, the pro's and the con's to their downfall would take up pages to write, however their concept was what the majority of Australians were wanting at that time and my belief is, they still do today.

I dont think it is arguable, but "if" we had "first past the post" voting during that memoriable election, both major parties would have been rocked back to the last century. Whatever, both parties were that scared of that result, they combined behind closed doors to eliminate One Nation, once and for all...the rest is history!

The concept for any new political part in the country, is be the peoples government, not the government of the business world. With that said, if I was in a postion to represent my electorate, I would be in this current economical climate, lobbying to help those families out there in struggle street, by elimination the GST on excise. And one step further, by aligning the excise factor to the interest rates( to long to explain here, however what I am saying is if interest rates are up, then excise comes down, minus the GST to offset the increase in interest rates).

Macca
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Follow Up By: NUTS! - Friday, May 05, 2006 at 01:28

Friday, May 05, 2006 at 01:28
so whats the pick then, a party who's got only 1/2 an idea because they have been doing it for a few elections now, or a party who can't even remember how to run a budget because its been so long let alone other portfolios .....or a 3rd who might make you feel better when you tick a box but what are they good for?!
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Follow Up By: NUTS! - Friday, May 05, 2006 at 01:29

Friday, May 05, 2006 at 01:29
so whats the pick then, a party who's got only 1/2 an idea because they have been doing it for a few elections now, or a party who can't even remember how to run a budget because its been so long let alone other portfolios .....or a 3rd who might make you feel better when you tick a box but what are they good for?!
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Follow Up By: Barnesy - Friday, May 05, 2006 at 05:28

Friday, May 05, 2006 at 05:28
Macca, yeah the Howard govenment likes taxing us on eveything we spend and that money goes on 'pre-emptive strikes' on other countries that pose no threat. also goes on 'public education campaigns' that always seem to occur just before elections.

but realistically if another party came to power would anything change? i don't think so. a fwe little things may be altered here and there but on the whole not much would change. especially not when the opposition are reluctant to actually make any policies of their own and simply copy johnnies.

if one nation came to power in that election a few years back then australia would have been going backwards in terms of respecting non-anglo saxon people. and that would have been a change from the current government, a change for the worse.

instead of blaming governments for the high cost of fuel we should be looking at alternatives to fossil fuels and get right into devoping solar and salt water powered cars. thats the future.

Barnesy
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Follow Up By: chappobriz - Sunday, May 07, 2006 at 22:08

Sunday, May 07, 2006 at 22:08
Macca ,
"however their concept was what the majority of Australians were wanting at that time and my belief is, they still do today. "

Mate, You mix in different circles to me. MOst Australians I know don't like racism and don't want ignorant people in charge...so hopefully they will get rid of Howard next time (Unfortunately too many tools will get sucked in and bought like what happened last time [e.g. baby bonus, interst rates won't go up under liberal etc.)

The real issue is our lack of commitment to alternates like biodeisel etc...thanks again Mr. Howard for sucking Mr Bushes fuel syphon
Chappo
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Reply By: Muzzgit (WA) - Thursday, May 04, 2006 at 22:03

Thursday, May 04, 2006 at 22:03
A listener of radio 6PR (talkback in Perth) sent an email to the radio station this week. This guy works in Saudi and listens to 6PR on the net and said in his email that ULP went from.......

GET THIS........

From 36c/L to 29c/L

WHAT THE F...

AnswerID: 170781

Follow Up By: Mad Dog (Australia) - Friday, May 05, 2006 at 12:23

Friday, May 05, 2006 at 12:23
It was reported in the newspaper that the King reduced the price 30% and said it was good for the people and good for the country. They have cheap fuel but I know where I'd rather be.
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Reply By: bbuzz - Thursday, May 04, 2006 at 22:09

Thursday, May 04, 2006 at 22:09
From previous posts this is what was submitted re pricing -
Gary, the main reason for the increased gap between DIESEL and ULP is the recently introduced primary producers and transport DIESEL subsidy. To maintain profits when DIESEL has to be sold cheap to certain people, the price is bumped up for everyone else. The higher price for DIESEL makes even less sense when you consider that DIESEL needs almost no processing compared to ULP and is therefore much cheaper to produce.
AND
Alex, The rebate for primary producers and heavy transport industry does not come from the oil companies. It is a tax rebate from the government out of the taxes paid when the primary produces/transport industry paid for the fuel. The fuel is not being sold cheap to anyone!! DIESEL became more expensive because the greens think (oops - they never think!) DIESEL is a 'dirty' fuel, i.e. more polluting then ULP. We all know that is utter rubbish but a deal had to be done with the greens to get the legislation through parliment. Hence increase taxes (GST, excise, tax, levie, call it whatever - a tax is a tax). Blame the greens, but yes, I also think the oil companies are taking advantage of the situation to some extent but they are not the main culprit this time.
This is the reason guys. It happened around 2002, like the 3 cents for 3 years that Nick Greiner gave us. Now 10 years later is is still here!!
AnswerID: 170784

Follow Up By: Chaz - Friday, May 05, 2006 at 01:34

Friday, May 05, 2006 at 01:34
Spot On Bbuzz, and I've always thought that when the government said they would subsidise the cost of diesel for country users, it was the city users that were paying the price. The upside is that diesel doesn't go up as much in the country as ULP.
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Follow Up By: falcon74656 - Friday, May 05, 2006 at 01:57

Friday, May 05, 2006 at 01:57
I have to agree with you bbuzz,

all of the research I have done in the last few months on why diesel is more expensive than ULP now than it used to be leads to the excise, taxes and GST placed on diesel. Diesel was cheaper to refine than ULP before Little Johnny and is still cheaper to refine, but the bowser price has jumped considerable compared to ULP.
Disreguarding the rise in world oil prices, diesel should still be at least 5 - 10c cheaper than ULP not the other way around.
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Reply By: Sand Man (SA) - Friday, May 05, 2006 at 01:32

Friday, May 05, 2006 at 01:32
The fact is, the Multinational Fuel Companies have no real competition, apart from each other and I'm sure they all look after "their" industry.

The solution.....TAKE IT AWAY FROM THEM.

The real Primary Producers, the farmers, could produce, distribute and sell Bio-Diesel, (made from Canola oil, etc) cheaper than the rag-head backed Oil Companies, with all their excuses of International unrest for the continual rise in prices. We could have a new Industry that gives support to the Man on the Land.

And everyone would be driving diesel engined vehicles and we would have a renewable natural resource as a catalyst.

Well, it's a theory anyway.

Bill


I'm diagonally parked in a parallel Universe!

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AnswerID: 170825

Reply By: Sea-Dog - Friday, May 05, 2006 at 09:31

Friday, May 05, 2006 at 09:31
On Sunshine Coast Qld the diesel is normally around 18 - 20 cents / litre more expensive..... and it hurts!

What gives me the craps is we are paying around $1.38 /L at the moment for diesel and for one day (if we are lucky) the unleaded hits close to the same price or a cent or two less and there is a great outcry from every mongrel driving a petrol vehicle....

I say to them "Get over it!" we have been paying the prices they cry about for a good 6 months to a year before they even hit it for one day and then the next day their fuel is discounted by 4 cents or 10 cents until by the middle of the next week there is a huge gap in prices again.....

The price of diesel only moves in one direction..... UP! $200 to fill the fourbie.

Sucks!
AnswerID: 170865

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