Fuel price differential explanation

Submitted: Thursday, Nov 15, 2001 at 01:00
ThreadID: 552 Views:1431 Replies:1 FollowUps:2
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Over the past year or so the gap in price between diesel and unleaded seems to have grown. I recall that the price per litre used to be very close. Can anyone explain why this may be occurring??
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Reply By: Alex - Friday, Nov 16, 2001 at 01:00

Friday, Nov 16, 2001 at 01:00
Gary, the main reason for the increased gap between diesel and ULP is the recently introduced primary producers and transport diesel subsidy. To maintain profits when diesel has to be sold cheap to certain people, the price is bumped up for everyone else. The higher price for diesel makes even less sense when you consider that diesel needs almost no processing compared to ULP and is therefore much cheaper to produce.
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Follow Up By: Tony - Sunday, Nov 18, 2001 at 01:00

Sunday, Nov 18, 2001 at 01:00
Alex, The rebate for primary producers and heavy transport industry does not come from the oil companies. It is a tax rebate from the government out of the taxes paid when the primary produces/transport industry paid for the fuel. The fuel is not being sold cheap to anyone!! Diesel became more expensive because the greens think (oops - they never think!) diesel is a 'dirty' fuel, i.e. more polluting then ULP. We all know that is utter rubbish but a deal had to be done with the greens to get the legislation through parliment. Hence increase taxes (GST, excise, tax, levie, call it whatever - a tax is a tax). Blame the greens, but yes, I also think the oil companies are taking advantage of the situation to some extent but they are not the main culprit this time.
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Follow Up By: Ron - Wednesday, Nov 21, 2001 at 01:00

Wednesday, Nov 21, 2001 at 01:00
Gazza,

I don't know if its the greenies, the watermelons or the cocanuts but I reckon the main reason
its dearer is so that the bloody oil companies can keep the city slickers happy by providing cheap ulp
at around 80-85c litre whilst us us poor buggers in the bush pay around 10c a lite
premiun for ulp and 14c on deisel supposedly for the extra freight - BULL!

Why isn't deisel cheaper - it doesnt cost anthing like ulp to produce and oil is the cheapest
its been in 10 years - don't let em fool you - they are simply ripping off those with the least
political muscle!

Just grin and bear it - I'm still paying 94.3c litre today v ulp at 92.1 whilst my daughter filled up for
79c/l ulp in Melbourne and that's anywhere she likes.

A least we don't have to put up with the smog!

Cheers

Ron
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