Diesel fuel cost
Submitted: Tuesday, Nov 14, 2006 at 17:52
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Builders Mate
Having just returned from NZ I found that diesel is generally 40 cents cheaper than unleaded across the country. We pay at an average about 20 cents more than unleaded for diesel in Australia giving a disparity of approx 60 cents per litre between countries. (Yes I know it is less than that at the moment, but average it out for the last year or so) I checked some articles on world fuel prices and found that generally most countries sell diesel at the pump 25% less than unleaded. Can anybody enlighten me as to why New Zealand and Australia are so similar in vehicle useage and lifestyle but
miles (kilometres) apart in fuel prices?
Reply By: Gerhardp1 - Tuesday, Nov 14, 2006 at 17:54
Tuesday, Nov 14, 2006 at 17:54
Government taxes, oil company profiteering legalised by secret commissions and other kickbacks to legislators?
Nah, that wouldn't happen in Oz - everyone gets a fair go here, mate.
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Reply By: Member - Blue (VIC) - Tuesday, Nov 14, 2006 at 18:02
Tuesday, Nov 14, 2006 at 18:02
In NZ and several other countries you must pay a road tax determined by the fuel useage of the vehicle and your nominated mileage for the year ahead. This is the price difference as far as I'm concerned.
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Follow Up By: itsdave - Tuesday, Nov 14, 2006 at 18:47
Tuesday, Nov 14, 2006 at 18:47
Your right.Diesel users pay a tax on top of the pump price.
cheers Dave
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Reply By: Member - Nobby - Tuesday, Nov 14, 2006 at 18:13
Tuesday, Nov 14, 2006 at 18:13
Hey BM, I to have just returned from NZ and noticed the same (98 for diesel and 1.49 for unleaded. I don't suppose you were over there for the Golden Oldies Festival in
Wellington?
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Follow Up By: Builders Mate - Tuesday, Nov 14, 2006 at 18:43
Tuesday, Nov 14, 2006 at 18:43
No, not that old yet, just a trip around the South Island for two weeks.
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Reply By: The Landy - Tuesday, Nov 14, 2006 at 18:27
Tuesday, Nov 14, 2006 at 18:27
The tax component at the pump is far less for diesel than it is for petrol, however diesel vehicle users also pay road user charges on a per km basis....
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Reply By: macca172 - Tuesday, Nov 14, 2006 at 18:34
Tuesday, Nov 14, 2006 at 18:34
I found the same thing in rural France a couple of years ago and I was aware of the price difference in NZ as
well!
Oh
well while we suffer this corrupt government(who by the way dont pay for fuel for their cars) we will continue to be bleed dry.
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Follow Up By: Gramps (NSW) - Tuesday, Nov 14, 2006 at 19:55
Tuesday, Nov 14, 2006 at 19:55
LOL macca172,
Do you seriously believe 'this corrupt government' is the only one that does'nt pay for fuel for their cars ??? Neither have any before, or any after, or State governments for that matter.
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Follow Up By: Luke SA - Wednesday, Nov 15, 2006 at 10:11
Wednesday, Nov 15, 2006 at 10:11
Yep your right Gramps, not only do we pay for fuel in our own cars we pay for it in theirs as
well grrrrrrr..........that p#sses me off
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Follow Up By: Gramps (NSW) - Wednesday, Nov 15, 2006 at 16:47
Wednesday, Nov 15, 2006 at 16:47
You're not alone there Luke. Just another thing I've got against them :))))
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Reply By: Wazza - (Vic) - Tuesday, Nov 14, 2006 at 19:29
Tuesday, Nov 14, 2006 at 19:29
Yep, diesels (say average 4wd) have to pay NZ$32.15 per 1000km in "road user charges", plus $3-6 in transaction costs. Different rates for tractors, dozers, trucks, rollers, scrapers, etc. Must be a pain in the arse to work out for a big fleet.
Answers on page 18:
http://www.landtransport.govt.nz/publications/docs/road-user-charges.pdf
All users of New Zealand's roads contribute towards their upkeep. Most road users pay levies in the prices of their fuel. Others, such as users of diesel-powered or electric vehicles, pay through road user charges (RUC).
All the revenue collected from road user charges goes into the National Land Transport Fund and the Regional Land Transport Fund.
Road user charges are administered by Land Transport New Zealand and enforced by the New Zealand Police.
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Follow Up By: macca172 - Tuesday, Nov 14, 2006 at 19:40
Tuesday, Nov 14, 2006 at 19:40
Am I loosing the plot, however doesnt our rego fee's also contribute to the upkeep of roads?
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Follow Up By: Wazza - (Vic) - Tuesday, Nov 14, 2006 at 19:55
Tuesday, Nov 14, 2006 at 19:55
Macca, it is supposed to !
And even with the Road User Charge in NZ we still get ripped:
So at Melbournes current price of A$1.22 a litre, it costs me $147.40 to do 1000km at 12l/100km (120 litres used)
In NZ it would cost me NZ$116.40 to fill up for 1000km at NZ$0.97/L. Add the NZ$32.15 for a total of NZ$148.55 Converted to A$ and you get A$129.17 at exchange rate 1.15
So, unless my maths are crook, it would work out A$18.23 cheaper to do the 1000km trip in NZ.
Might be a different story for someone that can gets 7 to 8L/100km (lucky buggers if they can)
NZ$0.97 fuel prices from www.pricewatch.co.nz
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Follow Up By: Gramps (NSW) - Tuesday, Nov 14, 2006 at 23:23
Tuesday, Nov 14, 2006 at 23:23
Two solutions Wazza
1. Change to petrol
2. Move to NZ
LOL
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Reply By: stevesub - Tuesday, Nov 14, 2006 at 20:29
Tuesday, Nov 14, 2006 at 20:29
We own a diesel Nissan Mistral (Terrano II) in NZ for when we visit. The Road User charges on a diesel vehicle are a real huge pain in the butt. Forget to renew and you get a huge fine if you are caught. Every 5000km we queue at the
Post Office or VTNZ and pay for another 5000km worth. Not worth getting more as we are only in country for 2 or 3 months a year.
The Road User charges are based on mileage and also the weight (laden) of the vehicle and you could be weighed by the cops. We have a 3 ton sticker for the Nissan and from memory the last charges were around $NZ170 for 5000km which for us equals around an extra $NZ0.35 per litre of diesel bringing the price to around $NZ1.35 per litre or $A1.17 pr litre, same as what we have in
Brisbane right now.
I prefer the OZ way of the price you pay at the pump is all you pay.
Interesting in NZ, the petrol price is virtually the same between every petrol station and does not vary day to day like in OZ which is my gripe about petrol prices here.
Stevesub
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Follow Up By: Kiwi Kia - Wednesday, Nov 15, 2006 at 06:49
Wednesday, Nov 15, 2006 at 06:49
You are right stevesub but you can claim a refund for all 'off-road' km traveled. (you need to keep a log book). So, if you are a farmer or farm contractor and do lots of km not on public roads you don't pay road tax for the off-road portion of your vehicle running. Dairy company milk tankers have set daily runs and have a system where the distance from the farm
gate to the milk pick-up point and back to the road has been pre-calculated and they get credited for this distance. This saves millions in road tax for these vehicles per year. 4wd vehicles can also claim their off-road portion of total km traveled but I don't think many people bother.
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Follow Up By: The Landy - Wednesday, Nov 15, 2006 at 09:05
Wednesday, Nov 15, 2006 at 09:05
Hi Steve
I would be more inclined to gripe about the prices not changing in New Zealand as it might tend to indicate their are no competitve forces at work.....the price is neither gong up nor down in response to competition.
The fact that there are price changes occuring in Australia is indicative of competiton at work. Many forget that whilst prices may correct higher in a local area all at the same time it is usually in response to a discounting cycle coming to an end. The prices were coming off a lower base following a discounting cycle that often ends up in fuel being sold below cost level (no margin) to attract buyers. Offsetting this is the potential for sales in the
shop of other items.
Much independent research has been done on the discount pricing cycle in Australia and it confirms we are better fror having it. The frutration that arises and claims of collusion is generally a product of misunderstanding what is actually happening.
One could argue more so that New Zealander's are paying a set price and there is no competition.
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Reply By: Footloose - Tuesday, Nov 14, 2006 at 23:09
Tuesday, Nov 14, 2006 at 23:09
Hmm...my last foray into the world of oil companies and their practises, has convinced me that it's an illusion.
You are actually getting the stuff for free from the nice guys.
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Reply By: Ron 2006 - Tuesday, Nov 14, 2006 at 23:31
Tuesday, Nov 14, 2006 at 23:31
Just returned from a trip to Canada and found the same variation in price between diesel and unleaded.
Can't help wondering why we are being screwed and why the truth about the difference cannot be told.
Ron
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Follow Up By: The Landy - Wednesday, Nov 15, 2006 at 09:08
Wednesday, Nov 15, 2006 at 09:08
The difference is the taxes and how they are collected......this occurs in many countries with respect to diesel......it doesn't mean we are geting screwed, although it makes for popular debate to suggest we are.
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Reply By: G.T. - Monday, Nov 20, 2006 at 18:19
Monday, Nov 20, 2006 at 18:19
The tax on the diesel is levied depending on the vehicle`s weight. The heavier the vehicle the more you pay. It`s based on the premise that a heavier vehicle will do more damage to the roads than a lighter one, in other words - user pays. Regards G.T.
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Reply By: robak (QLD) - Tuesday, Nov 21, 2006 at 10:55
Tuesday, Nov 21, 2006 at 10:55
Diesel is no longer cheaper then petrol in Europe. For decades, it has always been cheaper, but from a few weeks ago that is no longer the case. .
And there's a big uproar about it over there too.
R.
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