Fuel prices

Yes we were in Dubai on Wednesday-03-08 I was told petrol was $0.50 au a litre. most cars and 4x4 were petrol (even a NEW V8 Nissan and not the gu) in the Uk we payed 1.05 to 1.10 pound per ltr

Hmmm I say.. just got off the phone with a mate who is with Exxon.

Got all upset that I phoned him while on hols at his humble holiday shack in Bermuda..poor bugger.

Anywho..put it to him straight..well I thought my enquiry was that.

How much to produce a gallon of gas..(that's petrol to us folks)

Funnily enough he didn't want to talk about that. but on pressing the point he tried this out..

ok ok.. let's say a gallon of gas cost $1.00...hmm when did you buy petrol last mate ?

But... ok I am with you..so ?

ok the crude oil part cost about 48 cents.... err includes profit huh ? ..no answer..

government taxes equal about 22 cents...ok so the gorvernment makes a profit out of me too ?.. of course he says.... hmmm

then there is the refining and profit margins.... say 20 cents...

err mate you just said that you make a profit on the crude so now you say that you double dip on the profits ?? ..

no of course not..he says.... err mate you own the refineries ? hmmmm

Can we drop this, I am on vacation you know ? ..

nope I want to know as I am sick of you guys covering up..

no cover up pal..just the way it is in the industry.. hmmm

ok so what about the rest ? I ask..

oh well thats distribution and marketing point of sales profit..you should ask someone else about those costs.. hmm says I..

ok so you don't own the delivery trucks..you do own the gas stations though..

no no you have it wrong..they are franchised..err and you dont make a profit out of the franchise mate ? hmmmm

ok so the end guy and drivers and such get 10 cents ? Yes that's about right.

So mate..I just counted on my fingers..all up you make at least 68 cents (crude cost and profit plus refining and marketing and profit) then the company announces a quarter profit of $4 billion and you say it is tough in the industry ?

Yes well, we do take risks in exploration and there are cost involved there.. umm mate..aren't those cost accounted for in the cost of the barrel of crude ? ... hmmmmm

He says that I seem to be one of "them" conspiracy blokes...

nope not me..just want to know how you sleep ok mate.. fine thanks he says.

I was about to hang up when I thought of one more thing ..

mate.. up here the price per litre last week was about $1.05 and yesterday it was $1.12.. how come ?

Dont you follow the markets..oil is over $100 a barrel...

umm mate.. err oil is traded on the futures exchange..

you know..the price for a barrel in three months time delivery..

how come it went up so much in a week when the stuff in the petrol station was delivered three weeks ago at the price it was back then.. ?

brrrrrrrrp brrrrrrrp brrrrrp.. guess I don't have him as a mate

Thought some may be interested in that little exchange.

No conspiracy it seems.

Just collusion, some straight profiteering and governments who cream off as much as they can and blame the oil companies who are "suffering"

Poor buggers.

NSW may have something similar via the NRMA. Can't see what good it will do though.

Fuel Watch only works , more or less effectively, when you have a fuel outlet on every second street corner or thereabouts.

Where I live (country town in WA) we have 3 fuel outlets.

Guess what?

They all sell at exactly the same price.

Not much use here!

Totally useless when there is only one fuel outlet within 50km or more.

Disco.