Sunday, Nov 04, 2012 at 16:14
Approximately 25% of petrol sold in Australia is imported, mostly from Singapore. This amount is progressively increasing. The balance is refined in Australia.
The output from refineries is piped to bulk terminals from which it is wholesaled to petrol marketers and sold from their branded service stations. These wholesaling contracts regularly change. This arrangement has existed since I entered the industry in 1960 but it was not
well publicised. It caused me to smile when someone told me that their car ran better on one brand more than another.
From Steve's response above you can see that W.A. has only one refinery and SA, NT
& Tas. have no operational refineries. So there are no alternative sources in those regions other than by importation.
So you have no way of knowing the refining source of the petrol you buy at the pump. It can vary from time to time.
The following extract from The Institute of Petroleum provides further detail:
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"BULK FUEL SALES: 'INTO' AND 'OUT' OF TERMINALS
There is significant wholesale market competition in Australia.
There is competition for bulk fuel supply both 'into terminal' and 'out of terminal' to wholesalers, resellers, retailers and other major fuel users.
Contracts for sales of fuel 'into' terminals, whether from domestic or international sources, are based on Import Parity Pricing (IPP).
Sales of fuel 'out' of terminals are negotiated on commercial terms mainly to contracted wholesale and retail customers, although spot purchases occur.
Contracts are typically based on IPP or TGP, while spot purchases are on the basis of the Terminal
Gate Price (TGP). Terminal operators seek to recover the terminal's capital and operating costs including taxes and other charges. Discounts or premiums may apply to customers depending on the volume, contract term, and any branding or marketing support provided.
Oil companies and independents often buy petroleum products from each other in markets where they do not own refineries or where they do not directly import through hosting arrangements. This is an economic and efficient way to service their customers in these markets. Such transactions are based on IPP and according to the ACCC were on average "only 0.4 cents per litre lower than the IPP in 2009–10".
The underlying pricing approaches in bulk fuel contracts and transactions are generally the same for all wholesale fuel customers."
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AnswerID:
497910
Follow Up By: Member - John (Vic) - Sunday, Nov 04, 2012 at 19:32
Sunday, Nov 04, 2012 at 19:32
Allan has this right.
I worked at the
Mobil Altona Refinery for 4 years as a maintenance fitter, we never had any form of split allocation of fuels for different buyers in my time their, it all went Holden Dock and was shipped interstate and overseas to
places like the Pacific Islands and the Yarraville or Newport bulk terminal.
If you stand out front of the Yarraville terminal and watch the tankers come and go they have everyones brand name on the side, BP, Shell etc.
All fuel must meet Australian fuel standards regardless of the source.
FollowupID:
773835