FUEL PRICES
Submitted: Wednesday, Apr 30, 2008 at 23:35
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Member - Roger B (VIC)
I know fuel has been done to death, but I went out to my daughter in laws place for tea tonight at 5.00pm, and passed three service stations selling unleaded for $1.549. On the way
home at 9.00pm, just 4 hours later, the same stations were selling unleaded for $1.429.
A 12cent drop in 4 hours !!!! Why is this so ????
Reply By: Peter 2 - Thursday, May 01, 2008 at 06:11
Thursday, May 01, 2008 at 06:11
It is called price fixing, is illegal but the powers that be seem to be unable to stop it.
I've been standing at the counter at the local servo when the phone call comes in to change the price to XXXXX at XXXX time.
I've also been tolf to come back later as it will be cheaper then.
But no there is nothing illegal going on!!!
AnswerID:
301406
Follow Up By: Robnicko - Thursday, May 01, 2008 at 12:05
Thursday, May 01, 2008 at 12:05
How true!
The counter operator at the local servo near me actually showed me the paper that auto prints from thier cash register that is generated by head office saying what to put the price to. He also stated that if they do not obide by the notice they would be penalised by way of higher delivery prices.
ACCC open your eyes
Rob
FollowupID:
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Reply By: Cape York Connections - Thursday, May 01, 2008 at 06:29
Thursday, May 01, 2008 at 06:29
Ask landy thats the way it is and they dont make large profits as I posted down the page.
6 billion in the first quarter.
Because they have no competion and the ACCC are most probably being paid by the oil companys.
Because we are being ripped off.
Because they can.
All the best
Eric
AnswerID:
301407
Follow Up By: Best Off Road - Thursday, May 01, 2008 at 07:05
Thursday, May 01, 2008 at 07:05
"the ACCC are most probably being paid by the oil companys"
That's a big statement. I for one don't believe it is even remotely possible.
Jim.
FollowupID:
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Follow Up By: The Landy - Thursday, May 01, 2008 at 09:13
Thursday, May 01, 2008 at 09:13
Eric, 6 billion is a 'large number' that isn't to say it is a 'large profit' when you consider the capital investment. Secondly, as someone else has rightly pointed out to you, the profit came from inventories, that is they pump oil out of the ground and obtain what the market is willing to pay for it.
In so far as fuel retailing goes (refining it into petroleum products) BP actually made a very small profit and most analysts had been expecting them to have made a loss. Either way, they aren't making much money out of refining oil into petroleum products.
Have you read the accounts it released to the stock exchange; I recommend you do!
No beef with you as I said before, but I'm interested to see informed discussion rather than headline grabbing that means little. If you get the issues wrong, the fix will also be wrong. This is the case with FuelWatch, under which you will be worse off. This has come about because people have complained about abrupt pricing changes. The government has responded with FuelWatch and the cost will be out of your hip pocket. So how are you going to be better off?
These are the facts.
FollowupID:
567514
Reply By: Andrea11 - Thursday, May 01, 2008 at 07:49
Thursday, May 01, 2008 at 07:49
Current fuel prices have got me thinking, what if any effect it will have on sales of Petrol 4wd's? In some place's around the country Deisel is up to 18c per litre more expensive than ULP according to "fuel Prices" in the topics section of this site....
Andrea
AnswerID:
301410
Follow Up By: Patrol22 - Thursday, May 01, 2008 at 18:53
Thursday, May 01, 2008 at 18:53
In some servos around the Canberra/Queanbeyan area at the moment ULP is 154.9 and diesel is 172.9 - go figure
FollowupID:
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Reply By: The Landy - Thursday, May 01, 2008 at 09:17
Thursday, May 01, 2008 at 09:17
Roger
That is potentially the fuel discount cycle at work. Those that argue for a stop to the abrupt price changes are in fact arguing for a stop to discounting. Under that scenario you get to pay the full price all the time. Now how can anyone be better off under that arrangement?
Fuel refining and retailing is a fine margin business that is an undisputed fact.
The fact that the price is trending higher is another issue altogether, however the arguments and complaints tend to become blurred into one issue. As for the claims about price fixing numerous inquiries have highlighted this not to be the case.
Fuel is a commoditised product and consumers are indifferent to whom they buy it from. So if the guy up the road drops his price, other retailers in the same locality need to do the same to ensure continued business because fuel is a volume business, if you aren’t selling it’s costing you money. When the price support is withdrawn the reverse happens and the price rises.
The problem with getting the argument wrong is that the fix (if there is one) will also be wrong, as is the case with the new FuelWatch scheme, under which we will all pay more, on average, than we would without the scheme. In fact, the winners will be the fuel retailers, the same people everyone is complaining ripping consumers off now!
But you’re right, this has been done to death and despite the facts being clearly presented here, and elsewhere, many still think there is some great conspiracy.
AnswerID:
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Follow Up By: Gone Bush (WA) - Thursday, May 01, 2008 at 09:23
Thursday, May 01, 2008 at 09:23
I think you are right. Under FuelWatch, which we have here in WA, that price drop mentioned in the OP would not have happened. The servo must maintain his prices for 24 hours.
Woolworths have actually come out and said that WA is their most profitable State for fuel sales because of Fuelwatch.
And now it's going nationwide.
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Reply By: Redeye - Thursday, May 01, 2008 at 17:07
Thursday, May 01, 2008 at 17:07
What get me is someone who should be riding a camel and has the biggest sand pit in the world is taking all my money.
The oil companies are taking their fair share but the price of a barrel is out of the ground price.
Will close now before the political correct police get me....
Redeye
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Follow Up By: Gone Bush (WA) - Thursday, May 01, 2008 at 17:39
Thursday, May 01, 2008 at 17:39
Yeah....
How come OUR oil got under THEIR sand ??!!
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Reply By: Wayne's 60 - Thursday, May 01, 2008 at 19:53
Thursday, May 01, 2008 at 19:53
G'day Roger,
This may be a very simplistic view and I'm happy to stand corrected by those who know.
A fuel station will try to sell off (lower price) their fuel before their next delivery to.......
1. maximise their delivery load = lower cost.
2. resell their fuel at the new (higher price) maximising the return to the fuel company.................. you can go where ever you want with that.
I could be wrong.
Cheers,
Wayne.
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301528