Petrol Price start a price war

Submitted: Monday, Apr 11, 2011 at 10:44
ThreadID: 85556 Views:2129 Replies:5 FollowUps:4
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This idea I believe was suggested sometime ago by Phillip Hollsworth, a retired Coca Cola executive. The consumer hurts a large petrol delivery company without hurting ourselves.
We choose not to buy petrol from BP for the rest of this year, if we get this idea to enough consumers it will impact greatly on BP, but we are not going without, it is a long term sustainable action by which consumers can show that they also can control the market place, but only if we all get the message out there and we all do it.
BP will be forced to lower their prices others will follow.
The consumer has the power
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Reply By: member - mazcan - Monday, Apr 11, 2011 at 11:14

Monday, Apr 11, 2011 at 11:14
hi len m
here in wa you would have to bouycot coles and woolworths as well as bp so then where do you but your fuel
the thing thats going on over here is that w/wths in particular are trying very hard to force all the independants out of business by undercutting prices where the indeps are for instants take busselton w.a

w/wths have to take the fuel 55kms past and south of bunbury and sell it 4-5cpl cheaper than bunburys prices
just to force pressure on the indeps down there
but in mandurah and several other places raise the prices to recoup what they are losing in busselton while they play the price war against the independants

the same is going on with coles /woolworths so called price roll back
what they are losing in the rollback on supermarket shelf prices they are recouping it by raising the fuel prices and i think a lot of people are starting to wake up to they mind games

they have the powers and they will use it against us small ants under their feet
i'm not knocking your suggestion or the fact that people power can and does work but its just not that simple and actions of this nature needs to be thought through
cheers barry
AnswerID: 450910

Reply By: Member - Andrew (QLD) - Monday, Apr 11, 2011 at 11:35

Monday, Apr 11, 2011 at 11:35
Sounds like the SPAM emails that have been doing the rounds for years.

Never will work :) Too many variables and reasons for choosing one fuel station over another, too large a turnover for them to feel any impact.

Living in a regional area where the only place to buy fuel after 7-8pm is BP, it is not a choice that we have. If you break the rules of this crusade in the first week, then it is doomed to fail....sounds like a diet plan :)

AnswerID: 450914

Follow Up By: Member - Len M(lizard) - Monday, Apr 11, 2011 at 12:09

Monday, Apr 11, 2011 at 12:09
Yes, I have to agree with both you MAZCAN and ANDREW why the plan is doomed. Also have tried many diet plans, not one worked. However over the last 7 months with a change of attitude I have lost a little over 30 kg.
Started at 118 kg now 86 kg and maintaining. No pills or potions and not that hard if you want it bad enough.

FollowupID: 723459

Follow Up By: Member - The Bushwhackers -NSW - Monday, Apr 11, 2011 at 17:45

Monday, Apr 11, 2011 at 17:45
Hi Andrew,

As a fairly big user of email, I get this stuff all the time. It sounds good on the surface, but investigate and you will see the flaws.

Would love to find a 'magic' solution to the fuel prices, but I'm afraid those huge multinationals have it all over the consumer, particularly in this area.

Cheers, Dave

FollowupID: 723488

Reply By: MEMBER - Darian, SA - Monday, Apr 11, 2011 at 14:49

Monday, Apr 11, 2011 at 14:49
Agreed re the above - such things are always too hard in practice - but worse than that.... if the ACCC could identify as little as two promoters of the idea working together, I think they would be obliged to prosecute them under the relevant trading act. No ?
AnswerID: 450927

Follow Up By: ob - Monday, Apr 11, 2011 at 17:43

Monday, Apr 11, 2011 at 17:43
Sounds like a great idea but as said would be too hard to get enough people to participate for all sorts of reasons.
On a slightly differently subject Darian, your avatar (photo) of the bees looking for water reminded me of a family camping trip up the WA coast. Middle of a long dry spell and the local bee population were obviously getting a little desperate for water. We were all sitting around enjoying a meal and busy keeping the little pests at bay when one decided he had hit the jackpot and flew up the leg of one of the BIL shorts. A sudden screech and rapid removal of shorts revealed the offending insect had scored a bulls eye, if you will excuse the pun.
I don't intend going into the sordid and painful details but his good wife was later heard to remark "I wonder if the pain could be reduced and the swelling left"

FollowupID: 723487

Reply By: Member - Mfewster(SA) - Tuesday, Apr 12, 2011 at 07:55

Tuesday, Apr 12, 2011 at 07:55
Not a chance. The margin on fuel actually isn't all that high. What we are paying simple reflects good old capitalism supply and demand. World population and demand for fuel is increasing. Supplies are tapering off and more and more has to come from deep off shore drilling. That's expensive.
You could thank your lucky stars that fuel is so cheap in Australia because of of our incredibly high dollar. If the dollar fell to the level it was a couple of years ago, we'd be paying another 30cents a litre.
AnswerID: 451025

Reply By: The Landy - Tuesday, Apr 12, 2011 at 08:29

Tuesday, Apr 12, 2011 at 08:29
A point to bear in mind is that in New South Wales there is one main refinery at Kurnell, owned by Caltex, supplying all brands in the region, in West Australia it is the BP refinery at Kwinana doing the same. Just who it will hurt I'm not sure.

But something that needs to be remebered about fuel supply in Australia is that we should be less concered about price, but more about security of supply. Refining is a low margin, how turnover business, and we need them to make a return to support their refining activiities in Australia. Otherweise will will end up importing more of our refined fuel requirements.

On refining capacity in our region; it is estimated the Japan earthquake has taken away approximately 3 million barrels per day of refining capacity, that will filter through to prices, and already is.

The world runs on oil, not just cars, trucks, and heaven forbid, four-wheel drives, and all these uses compete each day for a resource that is is decline, prices can only trend higher over time...

Cheers, The Landy
AnswerID: 451029

Follow Up By: The Landy - Tuesday, Apr 12, 2011 at 12:58

Tuesday, Apr 12, 2011 at 12:58
And to highlight my point, the following is a news item (just) out today, if there was so much money to be made from refining oil into petroleum products they’d be opening refineries, not closing them. Another step towards having to rely on imported petroleum products....

Cheers, The Landy

MELBOURNE, April 12 (Reuters) - Oil giant Royal Dutch Shell plans to close the smaller of its two refineries in Australia and turn it into a fuel terminal as it can no longer compete with Asia's mega-refineries, the company said on Tuesday.

Shell said the 75,000 barrels per day Clyde Refinery in Sydney -- which accounts for about 10 percent of Australia's 750,800 barrels per day capacity -- would need a large investment, including a maintenance turnaround scheduled for mid-2013, if it were to continue running.

"The proposal to convert Clyde into a terminal is consistent with Shell's strategy to focus its refining portfolio on larger integrated assets, and to build a profitable downstream business here in Australia," Shell vice-president Andrew Smith said in a statement.

Shell's Clyde and Geelong refineries supply about a quarter of Australia's petroleum product needs, according to the company's web site.

The company's downstream portfolio in Australian also includes more than 800 Shell branded service stations, a lubricants blending plant and 16 terminals.

It has an exclusive arrangement to supply around 600 Coles Express convenience stores and petrol stations, owned by Wesfarmers, around Australia.

Tuesday's announcement follows Shell's sale last year of its 200 petrol stations, pipes and storage and a 17 percent stake in New Zealand Refining Company for $490 million.

It has also been selling refineries in Europe due to weak refining margins and falling European fuel demand.

Last week it agreed to sell its Stanlow refinery in England for $350 million to India's Essar Enegy.

Australia's refiners, including Caltex and ExxonMobil, have long talked about shutting or consolidating plants to help improve their margins, but changes have been slow.

ExxonMobil was blocked by the competition watchdog from selling its petrol stations to Caltex in late 2009 and ended up selling 295 service stations on Australia's east coast to convenience store chain 7-Eleven Australia for an undisclosed sum.

The Clyde shutdown marks the second refinery closure in Australia in the face of a refinery margin crunch and stricter fuel standards. ExxonMobil mothballed its Port Stanvac plant in Adelaide in 2003.
FollowupID: 723623

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