soaring fuel prices

Submitted: Friday, Feb 21, 2003 at 09:30
ThreadID: 3472 Views:1409 Replies:11 FollowUps:19
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Hi all,Fuel prices both petrol and diesel in the city area's have been hovering around the $1 mark for some time now with talk on the news that $1.20 per litre is possible once the war hots up.When you budjet for long distance travel ie cape york,kimberly etc from the southern states it tends to make you wonder if the big trip should be done in 2003 or2004.I know its only money but it can matter to families on a budjet.Towing the camper and adding 15-20% more in the country areas for fuel makes you wonder if as many big trips will be on this year.Does anybody have any thoughts on the subject?

marcus
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Reply By: Will - Friday, Feb 21, 2003 at 09:44

Friday, Feb 21, 2003 at 09:44
Marcus,
Fuel will only go up.... never comes down to what it once was....

Just bite the bullet and travel, you may not be around in 2004....!!

Happy travelling!!

Will
AnswerID: 13629

Reply By: Savvas - Friday, Feb 21, 2003 at 10:34

Friday, Feb 21, 2003 at 10:34
Don't you just feel for these poor oil companies that are blaming it all on the war with Iraq (which hasn't started yet)? Imagine what will happen when it does.

I filled up yesterday at $1.079 for ULP (San Souci, Sydney). It's fascinating watching the dollars on the pump go up faster than the litres.

I don't understand though how the price has jumped (in my area) about 17c a litre, or 19%, in the last few weeks when Australia is supposedly something like 80%-90% self sufficient in oil production.


AnswerID: 13631

Follow Up By: Savvas - Friday, Feb 21, 2003 at 10:38

Friday, Feb 21, 2003 at 10:38
PS ... I'd travel to anywhere I could afford, anyway.

Will's right. You don't know what's around the corner.

Enjoy life buddy!

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Reply By: desert - Friday, Feb 21, 2003 at 10:53

Friday, Feb 21, 2003 at 10:53
When prices are high I don't buy it. I know it is an essential and you have to have it to function, what I mean is, when it is dear I do not fill-up, I only put in enough to do the travel for that day. When it is cheaper, then I fill-up. The only recourse us consumers have, is too exercise our buying power. Only buy it when it is affordable for you! I hope for the day that the masses get organised enough to stay home from work for a day and nobody buys any for the day. Like to see the oil companys faces.
AnswerID: 13632

Follow Up By: Coops - Friday, Feb 21, 2003 at 12:47

Friday, Feb 21, 2003 at 12:47
I agree Desert. We're far too submissive.
Walk the kids to school for a day, take a bus...whatever.
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Follow Up By: Brian - Friday, Feb 21, 2003 at 15:44

Friday, Feb 21, 2003 at 15:44
With a long range tank I fill up about once a month and get the cheapest price I can , use dockets,etc . does the city price vary according to the day of the week???
Brian
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Reply By: Suzuki Viagra - Friday, Feb 21, 2003 at 11:56

Friday, Feb 21, 2003 at 11:56
Interesting that world oil prices haven't jumped up 20% but pump prices have. This is clearly profiteering by the petrol companies and the ACCC should be looking into it.

Strangely enough the federal government is doing nothing about it - if due to the "war" we have to pay $0.20 per litre more then little Johnny might get some support for his war after all!

It's supposed to be approximately $1 US per barrel increase in crude oil costs ($1 extra for 205 litres!) leads to a $0.01 per litre price increase (after refining costs, taxes etc).

World oil prices haven't gone up $17 per barrel in 2 days. Nor did they a week ago either.

In fact the current world crude oil price is about half what it was during gulf war one - when we were paying $0.85 per litre.......
AnswerID: 13635

Reply By: Member - Andrew O - Friday, Feb 21, 2003 at 12:34

Friday, Feb 21, 2003 at 12:34
Cars are expensive things to buy and run ... 4WD's more so. When you fully analyse the total cost of car ownership, fuel is a significant, but not major expense. The problem is that its the most visible and frequently recurring expense. Our minds therefore weight it more heavily.

I'm still planning on a major trip (Flinders Ranges ex Sydney) in April (probably the time fuel really gets expensive), and have no intention of canning it because I might pay an extra $100 extra for the fuel over 4500km's.

Cheers
Andrew O
AnswerID: 13640

Reply By: Voxson - Friday, Feb 21, 2003 at 14:01

Friday, Feb 21, 2003 at 14:01
I rekon if we can afford to drive a 4x4 and plan a trip to Cape York we can afford the extra fuel cost.
I am going in July this year from Adelaide and had calculated $2000 for fuel... but if it is going to be $2400,,, it wouldnt stop me at all........
AnswerID: 13647

Follow Up By: Brian - Friday, Feb 21, 2003 at 15:59

Friday, Feb 21, 2003 at 15:59
No reason for fuel to be so expensive. the Oz fuel price is pegged to the world price even though we are nearly self sufficent.
10%gst of $1 a liter is better than .50¢????
Wonder what the price of fuel is in Iran/Iraq????? I have heard 1¢/l
Brian
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Follow Up By: Suzuki Viagra - Friday, Feb 21, 2003 at 18:23

Friday, Feb 21, 2003 at 18:23
If GST was only GST. The government would lose too much revenue so they "MADE UP" taxes to keep petrol and beer prices higher.

Otherwise we'd be paying $0.40 a litre, $2.50 for a pack of smokes and $15.00 a slab again.

3 biggest sources of revenue had to be protected.


What you believed the 10% on everything spiel - shame on you........


PS Man I wish the revenue on petrol actually went on roads like is claimed - I'd have a 4 lane freeway to my garage!
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Follow Up By: Bob Y. - Friday, Feb 21, 2003 at 21:36

Friday, Feb 21, 2003 at 21:36
Have you got a 4 bay garage?
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Follow Up By: Brian - Friday, Feb 21, 2003 at 22:54

Friday, Feb 21, 2003 at 22:54
I'd stick to my dirt rd to my garage if they spent the money ondriver training. Speed does not kill as much as not knowing how to drive.
Look at the reduction in motorcycle accidents sine the compulsory training was introduced(in some states).
However we agreee to much Tax not enough benifit!
Brian
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Reply By: GOB - Friday, Feb 21, 2003 at 16:00

Friday, Feb 21, 2003 at 16:00
I agree we wil still be going in august about 6000 ks dual fuel. little john shouldnt need a war tax as he makes afortune out of fuel both with excise and gst that is why the illigitamte person that he is will not do anything about prices .unfortunately we have just had an election so we have to put up with him as he has a "mandate "to do as he pleases including grabbing as much as he can off road users maybe there should be a charge on air for tyres so push bike riders have to pay to


GOB
Grumpy Old Bu
AnswerID: 13662

Reply By: Suzuki Viagra - Friday, Feb 21, 2003 at 18:26

Friday, Feb 21, 2003 at 18:26
Mandate? The opposition had more of the two party preferred vote. LIB/NAT got like 48.5%. Gerrymander is the word........

Wish he's look at the primary vote when it comes to the WAR......

Still if you can afford $50000 for a 4wd (or even $500 for a clapped out HQ) either party will tax the nuts off you so they can keep their big pension and secretary after retirement......
AnswerID: 13680

Follow Up By: Gob - Friday, Feb 21, 2003 at 21:31

Friday, Feb 21, 2003 at 21:31
did you see in vic where that wanker that wasnt registered to vote so couldnt stand for re-election ,the " 3 parties" have given him a lifetime government pension is this covering your bum or what
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Reply By: Chel - Friday, Feb 21, 2003 at 20:33

Friday, Feb 21, 2003 at 20:33
My thoughts on the subject is this, I spend between $120 - $150 per fortnight on fuel for our 2.8TD. We travel 80klm per day just for the kids to catch the bus. It is 100klm round trip to go to town. We currrently pay $106.9 for Diesel. It's a necessity, going to town depends on how many days left of bus runs etc. We have to budget very well for it.
Little jonny wouldn't pay for his fuel........ We all contribute to that..................
AnswerID: 13698

Follow Up By: Suzuki Viagra - Saturday, Feb 22, 2003 at 00:19

Saturday, Feb 22, 2003 at 00:19
If u spend $150 per fortnight buy a bloody 1.0 Sierra......

Easy solution - you don't like taxation - don't give em the money......
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Follow Up By: Truckster - Saturday, Feb 22, 2003 at 20:54

Saturday, Feb 22, 2003 at 20:54
I think your car is VERY VERY VERY unwell.....

but then work out the klms,

$75 a week for 1000+klms is alright for a big 4wd I suppose....
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Follow Up By: Voxson - Sunday, Feb 23, 2003 at 20:18

Sunday, Feb 23, 2003 at 20:18
Nissan Patrol EFI + $108:00 = 740kms..................
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Follow Up By: Truckster - Sunday, Feb 23, 2003 at 22:13

Sunday, Feb 23, 2003 at 22:13
GQ TD42 Diesel Auto 95ltr tank got me from Syd-Melbourne

:)
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Reply By: Allan - Saturday, Feb 22, 2003 at 00:51

Saturday, Feb 22, 2003 at 00:51
Just to stir you all up let me give you my thoughts. FUEL IS CHEAP. Think about it – you guys (and girls) go to the local deli and by a small bottle of water. I bet you pay a $1.00 per litre and its only water that been put into a plastic bottle and delivered to the shop. Think of the poor old oil company. They have to go out and shoot heaps of seismic. Then they pay geophysicists ’s to analyze all the data. If they are lucky they will get a few prospects that are worth drilling. Drilling a well can cost up to $10 million and if they are lucky they will strike oil in 1 out of 10 wells. After spending anywhere from $100m to a $billion on a platform they can start producing oil. The oil will go into storage tankers (if offshore that also costs a 100 million bucks). Then a big fat oil tanker will take it to a refinery to refine it into sweet diesel or petrol for our precious 4X4’s. Remember some oil tankers have been known to run aground and therefore the insurance costs are horrendous to cover pollution risks. After refining the poor old truckie needs a few bucks to deliver the fuel to the local service station. The gas station operator does not pay the attendants much but they still need to be paid. If fuel cost more it would still be better value for money than the can of beer, the coke or bottle of water you drink. I hope oil companies (and other big business) make heaps of money, increase their returns on investment so my superanuation fund goes up (instead of down). That way I can retire and go 4 wheel driving.
AnswerID: 13727

Follow Up By: Coops - Saturday, Feb 22, 2003 at 06:37

Saturday, Feb 22, 2003 at 06:37
so why, pray tell, is fuel the same price per gallon in "dubya" land that it is here in litres?
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Follow Up By: Truckster - Saturday, Feb 22, 2003 at 21:07

Saturday, Feb 22, 2003 at 21:07
Dude,
Im not sure if this is what your trying to get at, but please dont try saying that Oil companies are doing it hard... Dont even try to get anyone to feel sorry for them, it just aint gonna happen.. Thats the game they are in, they make billions...

As col says, why is it the same price per Gal o/s .?? We nearly produce enough oil to cover ourselves !!!

And the war AINT EVEN STARTED, so why should everyone shiat their pants and up the $$... CAUSE THEY CAN. PROFIT... THE MIGHT $$ AGAIN... Our weak Gov doesnt help us 0.000000000000000000000000000000000000000000001%

Like feeling sorry for banks.... That aint gonna happen either.
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Follow Up By: Allan - Sunday, Feb 23, 2003 at 00:51

Sunday, Feb 23, 2003 at 00:51
Gents, I’m not asking anyone to feel sorry for oil companies, banks or anyone else. The price of oil is what it is today because that is what people are prepared to pay for it and the oil companies and government profit from it. The oil companies do not set the price – they can only adjust the volume produced. Whether we are self-sufficient or not – the international market sets the price (futures traders). The threat of war does not help. Go back to the basic fundamentals of economics - Supply and demand. Just like the person selling bottled water – you don’t get charged $1.00 a bottle because that’s what it costs him. He charges that amount because that is what people are prepared to pay. And it’s the same reason I get paid the amount I do for my services. Because no one will pay me any more unless I go to some crap place overseas. As for why it is cheaper at the pumps in other countries – look at the tax regime and then recalculate. The US is not cheaper when you take the exchange rate into account (remember their gallon is less than ours). Try registering a vehicle in Singapore and see what that costs you. After living and working around the world it makes you realise which place is best.
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Follow Up By: Suzuki Viagra - Sunday, Feb 23, 2003 at 10:00

Sunday, Feb 23, 2003 at 10:00
Coops - remember it's $1 US per Gallon (3.9 litres for US Gallon) - nearly $2 Aus.

Still 50c per litre not $1 per litre.

But the US government has much cheaper taxes on oil, and the US Has far larger oil reserves than we do (although it has much larger need also).

It also comes down to grades of oil - while technically Australia is 70% self sufficient, the reality is that's crap. We export some of our oil, and a very high percentage of our natural gas. And we import much of our petrol grade oil. It costs to much to refine and remanufacture from some grades to others, and as we all know you can't use petrol in a diesel or vice versa....

Another issue here is that there is a very significant lack of refineries - this is where the big oil companies have a stranglehold on the market. While you may be able to buy your petrol from an independant distributor, the oil is refined by one of the big boys. This is where they make their money - artificially keeping prices high for all users.

The poor suckers selling petrol at the station make like 2-3 centres per litre normally and I don't begrudge them any of that. Every petrol station sells what in the retail industry are called "complimentary products". Without the high margin they make on Newspapers, Cigarettes and drinks most petrol stations wouldn't survive.
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Follow Up By: Truckster - Sunday, Feb 23, 2003 at 12:01

Sunday, Feb 23, 2003 at 12:01
Coops - remember it's $1 US per Gallon (3.9 litres for US Gallon) - nearly $2 Aus.

Still 50c per litre not $1 per litre



Id have a woody if fuel went back to .50cpl, I'll take that over our $1.10 a ltr.
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Follow Up By: Coops - Sunday, Feb 23, 2003 at 12:38

Sunday, Feb 23, 2003 at 12:38
That's still only $0.44 cpl and if I were living there again the highest income tax I would be subjected to would be 20% or thereabouts unless I was earning over $1/2 million pa.
Exchange rate being low only means more profit for the oil companies here as they sell in US dollars.
I don't begrudge servos their 3 cents either and will pay about $0.15 more for a litre of diesel than most of you blokes when I fuel up today or any other day....... but I do it because there's no other way around it for me.
Interesting thread Allan and I enjoy reading everyone's opinion on such matters.

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Follow Up By: Thepublican - Sunday, Feb 23, 2003 at 16:48

Sunday, Feb 23, 2003 at 16:48
Take away the blatant rippoff that politicians enjoy as their superanuation , = LESS taxation on fuel .,,just removing the perks that we all still pay for to our former prime ministers would allow a 1c reduction in tax .
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Reply By: Allan - Monday, Feb 24, 2003 at 01:13

Monday, Feb 24, 2003 at 01:13
When was fuel $1.00 per gallon in in the US? Guys if you are going to quote fuel prices make sure you get them right. The current average fuel price in the US as at 17/03/03 is US$1.66 per gallon for gasoline and US$1.70 for diesel. For those that have worked there knows that each state has their own tax similar to our GST ranging from 3 to 8%. In California you will pay US$1.86 for gasoline and US$1.78 for diesel – (up nearly 20c from 3 weeks ago). Convert it back to Aussie bucks and make allowance for the government hand-outs (pensions etc) we have here then you will realise its not worth applying for your green card. If you can not afford to buy fuel here and run your 4x4's then I suggest you hop on a plane and get educated about what happens in the real world.
I knew I'd start something with this thread.
AnswerID: 13810

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