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.
FollowupID:
8171