LPG v Petrol prices

ozwasp

the answer is in your question "Liquefied Petroleum Gas" LPG note the word Petroleum

LNG is Liquefied natural Gas

one man made, one GOD made... it's old but worth the read

Richard

Hey ozwasp,
same reason diesel is more expensive despite the fact it is 30% cheaper to make.

Blatant profiteering of those poor innocent retailers.....

Maybe Australia should blackmail the rest of the world if they want uranium too???

I asked my mechanic about LNG. "Sydney buses run on the stuff at about 20cents/litre, so why can't I get some of that action?" Evidently natual gas is extremely difficult to liquify and the cost of the ultra high pressure tanks and components required make it too expensive for domestic use.
As to the price of LPG, about 5 years ago I was told that during the northern hemisphere's winter the demand increases in Europe, because they use LPG for heating, and I've watched that fluctuaton ever since. The price does come down again at the end of our summer.
However, I'd never noticed that it tracks 50% parity with ULP. Maybe you've busted their scam mate.

It's all about market, availability, demand and whatever the customer has been conditioned to. One thing about the oil companies (and probably others too) is that once they reach a price level, it is EXTREMELY rare for them to lower the price. So once upon a time we all shuddered at the prospect of 50c per litre, then 70c then heaven help us $1.00. That was the magic milestone for the oil companies. $1.00 it had then them years to achieve but once they got there (regardless of international prices) and the customers were 'conditioned' to it, then away they went. Now we have reached $1.50 it will/might stay that way for some time during which we are all 'conditioned' to it. I bet you anything you like that unless the Govt. intervenes, we are very unlikely to ever see a permanent pricing below $1.50. It doesn't really matter what the price of the commodity is, it's all about what the customer will (must) pay. The price of fuel is becoming so expensive that some motorists are having great difficulty affording to fill their tanks for just a night or weekend of 'cruising'. Now, if you are really concerned about fuel prices, lobby the Govt. to either reject continual exices/GST increases or have them lower the percentage of excise they receive. All these price increases are a real windfall for the Federal Govt. coffers one of the reasons they only pay marginal 'lip service' to motorists complaints. Looks like we will just have to get used to it. So in answer to your initial question, why does LPG price increase proportinially to petrol, because of world demand, northern winters, African unrest, Chinese growth, South American unrest, 'that's what the consumer will pay' etc etc.

It is an unregulated market, supply and demand and what the consumer is prepared to pay and what the supplier can get away with.

I am sorry but profiteering is not illegal.

If we are not happy with the price - do not pay it - hence the catch - we will pay it so the supplier can charge more.

It is called Capitalism.

Get used to it.

Garry