How much markup in Diesel

That's a question worth exploring when you consider the shear volume of diesel fuel sold to the heavy trucking industry, farmers, motorists and general industries who use diesel to drive or power many forms of machinery - therefore by the shear volume of diesel fuel sold - it should be much cheaper - added to this of course is the old arguement that diesel is cheaper to produce as it needs little refining. So why is diesel so expensive.

Imagine the cost of everyday items/goods if diesel were sold at a lower price - It is in the UK and NZ.

Food for thought.

Cheers
John

I think that without any Govt intervention e.g. price control, you have to understand that market 'forces' are at play. A retailer will generally set his price at that which the market will bare - taking into consideration any direct opposiition.
Retailers/resellers are in the business of making money. To do that requires that the selling price of the item being marketed is greater that the wholesale price. The greater the difference between the two - the greater the profit (cash in pocket). It is obvious from the presence of diesel powered vehicles on the road (world-wide) there's been a marked increase in their ownership/numbers. Hence, those in the oil industry (wholesalers and retailers) can see that demand for their product has grown therefore higher prices are more achievable/sustainable. Doesn't maatter how much you or anyone else reminices about 'the good old days' with diesel being cheaper than petrol the fact is that while there is growth in demand there will be sustainability in higher prices.
How to beat them at their game - shop around, buy only on the lower side of the discount cycle, use shopper dockets, reduce your driving/mileage, remove some of the excess/surplus weight from your vehicle - tool boxes, accessories (unecessary for urban travel), lightn-off on the gas pedal, reduce your speed a little, drive more smoothly - avoid unecessary braking/stopping/starting or if all that fails to meet with your expectations then consider leaving the truck in the shed.
Now there is one way where lower prices to the consumer are achievable without wholesalers or retailers having to suffer any losses. What's that you say, well just consider the percentage motorists pay in tax (GST) and excise per litre. Every time there is an increase in the retail/pump price, the Govt. both State and Federal receive a nice little windfall. With all of the increases in the world oil prices, nowhere have we heard of any (ANY) Govt. Minister suggesting let alone advocating a reduction in either of these taxes imposed on motorists. Yes I know that some in the community (Mining, agricultural etc) may receive rebates BUT never have I know (or recall) a Govt. offering 'Joe Average' a reduction. What a windfall for Govts. If you really want to do something meaningful, whinge to your local Member(s), annoy the heck out of them, demand changes, tell them you've had enough.
That's the only way I can see there ever being any long term meaningful improvement for motorists.

I don't wish to go on about why diesel is so expensive.
It was more as the topic suggested about the markup and the fact that I could by it 14c/ litre or $20 per tank. That is a huge saving over the year plus I don't have to support those big coles/woolworths chains which I think somehow managed to increase the costs of fuel when they brought in the so-called discount vouchers.

Of more concern to me is, When are they going to put more that 1 or 2 diesel bowsers at any given servo.
I get thoroughly fed up with having to wait for Mrs shopping trolley to fill her go-cart with ULP, then wash the windscreen, then find her purse, then loose her keys etc etc etc when as she is doing this there are 2 or more empty bowsers that she could have used, instead of the one closest to the road, that incidentally is the only one with diesel and I have to wait and put up with her dirty looks because I have the nerve to want to use the only pump that serves the fuel I require....
Brian T

The numbers just keep getting bigger,
And this is for half a year.


Woolworths posts half-yearly profit
Wednesday January 30, 2008, 12:51 pm

Supermarket giant Woolworths says it continues to experience strong sales growth across all its divisions.

The company has reported a half-yearly turnover of $24 billion - an increase of 8.6 per cent on the previous corresponding period.

Woolworths chief executive Michael Luscombe says December sales were solid, with the bulk of the Christmas trading occurring later than the previous year.

Petrol sales have risen to $2.7 billion but the increase is due to higher prices, which have also resulted in lower volumes being sold in the second quarter.

Woolworths shares dropped 2.7 per cent on the release of the results, because the market was hoping for more.
Qoted YaHoo Finance

If you want it , buy it, there is no other way.
Otherwise get yourself a little sardine can, that will give you a squillion km/lt.
I too have been caught, but only a couple of hundred times with fuel prices, but what can you do, chase the stuff all over the place, and use more fuel in doing that.
Remember it was not that long ago, when Safeway/Woolies brought in the cheap themselves, and that what it was, cheap !.
Now think what it did to the "big" companies, ,, it made them price conscious.

I do agree with the ACCC, ( the toothless tiger ! ) competition brings down the prices, not laws.
Cheers
Bucky

If you want it , buy it, there is no other way.
Otherwise get yourself a little sardine can, that will give you a squillion km/lt.
I too have been caught, but only a couple of hundred times with fuel prices, but what can you do, chase the stuff all over the place, and use more fuel in doing that.
Remember it was not that long ago, when Safeway/Woolies brought in the cheap themselves, and that what it was, cheap !.
Now think what it did to the "big" companies, ,, it made them price conscious.

I do agree with the ACCC, ( the toothless tiger ! ) competition brings down the prices, not laws.
Cheers
Bucky

One of the classic examples of lets not really have any price competition happened recently at the local woolies / coles servoes /// the coles variety had thru their liquorland a 20c a lt off fuel promotion[ buy 6 bottles of vino to qualify] ,,funny NOT that for the whole promotion period the local coles fuel outlet had all its fuel prices set at exactly 15 point 9 cents per lt higher than the local woolies servo,, competition will bring the price down ??? yeah right !![ insert extreme sarcasm]

Local MP, government need to be harrassed. If not to cause further action by toothless tiger the ACCC, to take stock and evaluate amount of tax paid per litre. The extra money made by goverment due to barrell price increasing over previous years is phenomenal.
Beggars belief some of the posts above that subscribe to "no put a gun to your head, you don't have to buy it" Well most people do, because we need vehicles to commute to work, and a 4WD is the only way to explore our country. What a half arsed GST.
Considering the barrel price is tipped to double again within 3 years, I guess we sell the fourbies and take up bushwalking.