On the morning commute i passed a Shell petrol station and was shocked to see e10 at 1.349 a litre
so i go online and crude oil is still around the $50 mark
The AUD is around 78 US cents
which was the same the last couple weeks when e10 was around $1.15 a litre
so why is petrol now back to 2014 prices?
Parramatta Rd near Olympic Park
Ah, I saw mine out west so it might be changed by the time I go home… Lucky for me I fueled up already this week, phew…
agreed, last night i even saw it went up. $1.349/L in Rozelle
Have you checked the price of ethanol?
Yeah, there was something on the news about how much the petrol margins have increased since the price of oil dropped.
Kinda like the banks - they aren't passing on the full amount of their savings.
and vpower is still 20 cents more than e10 as usual so must be $1.55 a litre
Same in Brisbane. Prices were $1 the other day, now they're closer to $1.40.
Bikies.
Supply and Demand is also at play here, when the price dropped, there was a glut in the market, oversupply outweighing daily consumption. That problem has now been corrected so expect prices to sit around the 1.20ish mark during the low period of the price cycle.
i wouldn't have minded if prices jumped to only $1.20 which is a lot lower than $1.35
It's not S & D. Fuel consumption is quite non-elastic. Meaning people will generally still use X Litres per week, regardless of price.
Virtually no one is stocking up tens of 205 Litre drums in their backyard, nor do most business have tremendous bulk storage. Even if they did, it would be peanuts in the scheme of things.
It is purely profit driven… and again… people will still buy X Litres per week
And yet terminals can see variations of upto 29% in consumption per week, Petrol is quite elastic, diesel is the fairly static fuel (as it happens to have the most consumption and bulk storage onsite)
When pump prices went up from ~$1 - $1.20, the TGP had hit $1.10 and gradually rose to its current level of ~$1.20, which is why the price has gone down only negligibly in the current cycle. So, with a new cycle starting, the gap between retail and TGP is similar, just the TGP has gone up in the mean time.
crude oil is still around the $50 mark
It went up about 20% at the end of January, has come down a bit since then but I guess there are lag factors.
in absolute numbers, you seem to make sense, but if you look at it relatively then it doesn't…. for instance the TGP graph shows the increase in TGP over the last 4 weeks has gone up 16 cents but over the last 4 weeks prices at the bowser has increased around 30 cents
in the past 4 weeks according to that graph crude oil dipped to just over $45 and at the peak a little over $54… so lets say it's $54 a barrel and 78 cents exchange
taking out the excise of 39 cents per litre then the only rate that is affected is
$1.35 - 39 cents = 96 cents
so when petrol $1.00 - excise = 61 cents
with that in mind $45 a barrel to $54 a barrel (increased 20%) => 61 cents to 96 cents (an increase of 60%)
even if corrected with exchange rate it shouldn't be at 60%
for instance the TGP graph shows the increase in TGP over the last 4 weeks has gone up 16 cents but over the last 4 weeks prices at the bowser has increased around 30 cents
4 weeks ago, the cycle was at its trough, now it's hitting its peak (with a relatively shorter cycle in between).
artificial cycle… the equivalent to Dell computers pricing fluctuation where the same item changes price depending on which day/week/star alignment we are in
They charge what they like.
No politician or anything else will influence this massive rort.
Cough up suckers… :-)
The fortnightly cycle of petrol dictates that it goes up about 20-25 cents for no reason on a late Thursday/Friday. (Used to be Tue/Wed but noticed it moving later and later in the week recently)
No idea why it works like that though, but wait 2 weeks and petrol should be cheap-ish again.
Yes, but that was an anomaly due to the plummeting oil price. They were always bound to start going back to the fortnightly (or 3-weekly) cycle that you can see at the beginning of the graph.
There is greater demand at weekends, so to encourage buyers during the working week the price starts dropping monday through to thursday, then people are paid wages or pick up centrelink and the petrol companies are ready to relieve them of their cash in time for the start of the weekend.
You often hear lazy motorists who couldn't be bothered with watching prices whinge about the cycle, but for those of us who are up for saving a few bucks per fill up, we save hundreds each year.
If the petrol suppliers were forced to keep prices more static you can be certain the price would end up being static at the higher end of the fuel cycle. They're not in it to please motorists.
yeah, paid $1.50 for it in brisbane yesterday
Maybe the petrol company executives want to sell their Nissan leaf electric car? he he.
The petrol companies read this thread
Ozbargain Fuel Prices To Rise ? on 06/02/2015.
and put up the prices, because they can.
A major factor of this was the recent cut of the interest rate to 2.25%. The day after the RBA announced this, the petrol rose from $1.10 to around $1.50 a litre. And as Copie says, this has a major impact on supply and demand.
So when the Aussie was $1.10 US we enjoyed cheap cheap petrol… nope! It's rent-seeking behaviour which sadly is ingraned in rip-off Australia. Same with retail, they want it both ways. Sadly Australians, unlike say the Americans, are some of the biggest debt slaves in the world and just borrow and spend, rinse and repeat. I say vs the Americans as they are actually a heck of a lot more price conscious than people here (here being the nation of Aus MINUS those that visit OzBargain ;)!
Ironically, the cut in interest rates was supposed to stimulate the economy, and therein lies it's flaw - it simply imports inflation and only benefits existing participants in the debt markets (eg. The Australian National Ponzi Property Scheme). It's all bubble blowing.
Haha, what? What about sub prime mortgages and the trouble that caused?
I'd stay Aussies and Americans are pretty on par as far as debt is concerned.
Demand is a funny thing, when the price dropped to $1/L the demand dropped significantly as well (as sales dropped significantly) caused a glut and now that the pricing is stabilising itself once again the demand is picking up.
At 120-1.25 is where it will end up staying providing the tgp doesn't do something funny
filled up today Pulp 98 (Mango Hill) Bris. $1.269 L (but had a 10C Coupon off that)
Unleaded was $1:09.9
it got down to 93.9c after the coles woolies 4c off a few weeks back, now I see 1.35c (1.31 with the 4c discount) on the gold coast - dollar/oil hasn't changed that much.
likewise. best i got was 92.9. now can't find less then 1.30. just been dribbling in 10 or 20L waiting for it to come down, but keeps going up.
:C
I got petrol for 89.9c about a month ago with no ethanol.
It was 103.9 - 4c discount for shopping at Woolworths. 99.9c
Then I got another 10c off for buying my discounted recharge voucher at the petrol station (which I had to get anyway).
Got E10 from a United Servo in meadowbrook yesterday $1.12 a litre
Petrol is a business. Business' like to make as much money as they can. They also have giant billboards advertising their price to all of their competitors.
One chain will raise their price by a large amount for a few hours to try to increase their profit. Then:
a) The competition notices and matches the higher price to increase their petrol profits too. The first chain will keep their higher price. They then try to undercut each other by 1c/litre for a week or two until one store reaches the minimum price they are prepared to sell for. Or
b) The competition ignores the price rise (or misses it…). The first chain lowers their price back down again after a few hours.
Areas with more servo brands tend to stay lower (more chance of a smaller brand or independent staying low to get new customers and increase shop sales). Areas with only a few brands are generally screwed.
Some brands/stores attract loyal customers with service. They will have the worst price in an area, but for the few dollars more you'll often leave with a smile.
Sill 96 cents for 91 petrol in SA. One of the very few times when I could say I'm lucky I live in Adelaide haha.
To be fair you are talking about Costco (or the Coles express next to it) everywhere else in Adelaide metro is around $1.19. All good if you live in the inner North West, not so good if you live at Morphett Vale.
My guess is the Queensland cyclones has created an excess short term demand sucking up fuel from other Australian states during this evacuation and clean up process. Drawing down inventories for now, so it'll drop back down once we re stock.
There are so many theories as to why this happens. Everything is just a theory, no one knows the true reason. Thats why I hate economics. I should've studied maths or engineering.
It is scientific and well-understood.
The confusion stems from journalists and bloggers that can only comprehend 1 or 2 variables, or 160 characters or less, before their brains misfire and wonder off.
Far from 'scientific'
And with so many variables as you mentioned. Its most likely impossible to do any predictions in the economy. Most comprehensive models known today only handle so much variables at once.
petrol is a very profitable business… don't let anyone convince you differently!
margins at every level have increased and the actual 'bench price/exchange rate' makes very little difference if the truth was ever told and why z3289598 "There are so many theories as to why this happens. Everything is just a theory, no one knows the true reason. Thats why I hate economics. I should've studied maths or engineering" comment was SO TRUE.
Its a resource, we didn't put it their, in the ground, we just found it, apply some industrial scale chemistry and then pretend its going to run out sometime soon. As its not even decided how it got their or if its renewed by some sort of process over time that we don't understand.
As a christian you might believe it was the dinosaurs, or a scientist will tell you some sort of yet unknown 1 off event over a long period of time on what was once the sea floor, or yet another theory is its a natural, ongoing process of the earths upper crust/mantel. It was a surprise to me to find it isn't known how, what or when the as yet unknown process took place!
Anyway, im going out fred flintstone style on my pusshie for a ride; dino is safe for week days comute to work for now.
Lets not forget to mention, diesel in Sydney still at 1.25 per litre , so now regular unleaded is at least 10c more than diesel, crazy..
Noticed today that all the servos along Sunnyholt Rd here in Western Sydney are between $1.10 and $1.15 for E10. That included Coles, independents, everyone! Get in quick!
Get E10 and as a bonus stuff up your catalytic converter
Rubbish. if that was even remotely true (which it isnt) there would be widespread evidence to support it, which there isnt.
You have a mechanic you trust not to rip you off?.. talk to them and find out for yourself. You are burning contaminated fuel so why wouldn't it leave crap in the Cat? There is a reason why 98 fuel gives more mileage as it burns better and gives more power = it is much cleaner. If it was published freely then what would they do with the crap which wouldn't sell?
Contaminated fuel? you do realise that E10 is simply ULP91 with 10% ethanol injected into the downstream during the road tanker loading process. Its held to the same 2001 fuel standards as any other fuel product available.
And the reason why 98 gives you better economy in some cars is that they are able to lean out the fuel/air ratio because 98 has a greater calorific value (which is why you pay more for it)
I cart fuel for a living, so happen to know quite a bit about it (because you know, its my job to)
@Copie: That's great about you carting fuel and that you know your fuels… I'll listen to the Mechanic and see the crap residue myself :-)
@Logical: lol, you obviously have no idea. but i wouldnt trust some guy on the net either. but it is evident that you need to do more research
high performance cars run on e85 (yes 85% ethanol) without issue, more power than your everyday camry (not saying you have one) without any issues. in fact turbocharged cars can run with more boost using e85 vs 98. these cars get pushed harder than the majority of cars out there, without issues or "crap residue".
Listen to your 'mechanic' to your hearts content, but your comments are much like any other person who has heard stories from a friend of a friend whos uncles fathers left sister had rubber derogation of hoses.
I can pour 1L of 91 and 1L of E10 onto warm concrete, and both will evaporate off within minutes (E10 evaporates faster however) and nether of them leave any kind of mark or stain or residue.
But hey, you believe what you want, and some mechanic who is perpetuating some myth. The fact that E10 is nothing more then ULP91 with 10% ethanol injected into a bottom loading tanker arm (as E10/ULP91 share the same loading arms) means that either the 91 is no good (which flys in the face of your mechanic) or the denatured ethanol is no good (well better alert the several hundred companies that use it for procesing materials)
We're just getting ripped off.
Crude oil still hovering just under $50 a barrel.
http://quotes.ino.com/charting/index.html?s=NYMEX_CL.J15.E&t…
Weird I just drove to and from Canberra and it was 117 for Unleaded (non e10).
there is a fly stuck on you.
What is the ACCC going to do about this?
How is it that everyone is charging the same price give or take .01 cents.
Where is competition?
It was only cheap for 4 weeks then it's rip off season all over again.
Business that cannot regulate themselves and show no self restraint, time the Feds step in.
If they charge like this to the airlines, then the airlines will never make a profit
Don't kid yourself. In real world ACCC hands are tied as big corporations are untouchable due to their big donations to both parties. Everywhere else in the world they call it bribe.
i may (or may not) have one reason…
found this article which points to our prices being determined by Singapore Gasoline Price
Now looking at the Singapore Gasoline Price, it certainly looks like its gone back up a little…
Now what this also shows is that we ARE paying TOO MUCH!
because all through Dec'14 the Singapore gasoline price was around AUD$1.76 to AUD$1.80 when we had petrol prices slowing falling… i remember that during December it was around $1.20 before the crash to around 99 cent
AND now Singapore gasoline price is around $1.75 we are seeing $1.35 instead of the previous $1.20
so only conclusion is that profit margin has increased as the savings haven't been passed on
Cars in Singapore is a status symbol and totally unneccesary, cars in Singapore is 2nd most expensive in the world after Cuba. No wonder it is wise to follow their petrol prices seeing that petrol is an optional thing for 95% of the Singapore population and for those who own a car in Singapore, petrol is no object since car loans are 15 years.
We're such good American allies helping them in war and all but some smart alec in Canberra thinks we should never follow their petrol prices, currently approx $3 a gallon, (1 US gallon is 3.785 litres) Singapore is a much better place to follow for petrol prices, not USA since Singapore is such a huge trading partner with Australia, beating USA China and all the rest so it was such an excellent decision not to follow usa petrol prices.
Very true about car ownership in Singapore.
It costs about 80,000 singapore dollars to get and register a toyota corolla for 10 years lol
if this is continuation of the 'price discounting cycle' then does this mean the low is around $1.20 and the high is $1.35
meaning at $1.35 you would be paying at the peak and should expect that at the cycle low it will be $1.20
one thing's for sure, i use independents a lot more now than the big brands
Geez people in Oz are so damn thick, and believe any BS sprouted at them.
There is no 'discount'. It's all a damn illusion created to fool the masses. The companies are there to screw the customer as much as possible.
The price of Petrol should never have been allowed to fluctuate as it does.
In most other countries such behaviour is illegal. In all third world countries, the petrol stations, together with their owners would be burnt to the ground if they tried this.
The public here are so apathetic, and just don't care so companies do as they please.
Coles and WW should never have been allowed near petrol. They are duopoly, which in time will need to be broken up, if Australian politicians ever grow a pair.
roads closed pizza boy
find another way home
Incredible timing by the Mrs and I on Saturday; we filled up in the morning and when we drove past on the way home at noon, the hike had gone up.
Insatiable Greed of the Fuel Companies (Mafia)…coupled with teeth less Government agencies…….what can we expect ??
This rort has gone on for toooo long.
So does anyone know anytime soon prices will pick up about 95c per litre? Cause I was expecting this price to stay with us for least a couple of months. I thought this was a price error, it really annoys me cause I have only made a couple of purchases for 95c per litre. They just know no matter how much it costs people will pay for it, we don't have much of a choice do we? Unless we all stop driving cars like in BC.
it won't go down to 95c as the government was loosing too much $ on fuel taxes, levies and surcharges.
Buy the next 2 weeks hello $1.80!
Bring on alternative fuel vehicles with real range.
Searching the web for more information i came across the Australian Institute of Petroleum aka AIP website
which after reading made me want to pay the $1.35/litre
except that the core members are Shell, Caltex, BP and Mobil
The AIP are stating that the ACCC point the finger at Singapore pricing
What is interesting about this article is that everthing in it is "according to the ACCC"
You do realise that those companies only make the TGP (terminal gate price) which has a set profit margin. Anything above the TGP (other then 3-5c/L for delivery) is profit for the store itself. Now whilst those 4 do own some stores, many are franchised sites rather then corporate owned.
i didn't know that many of the petrol stations were franchises. Thanks for pointing that out.
The current TGP is just over $1.20 and hence our retail of $1.35
The question then becomes why is the TGP so high?
Because its related to prduct demand along with barrel price (remember we work on SGP which is around 5 bucks/barrel more expensive then US) then ontop you have the fuel excise (46c) then gst as well. Also dont forget that the exchange rate took a hit as well which effected the pricing.
In Jan/early feb there was a glut in the market, alot of excess product stored at terminals which aided in dropping of pricing, now that its been corrected the price is starting to equalize again.
and yet another article on what determines petrol pricing points to the fact we use Tapis Crude Oil as the benchmark and not US crude
Tried finding graphs for Tapis Crude but best i could do was the AIP one which shows that the price of Tapis Crude has been rising and is overall more expensive per barrel than the US oil
Looks like the price of Tapis Crude increasing is the reason for the retail petrol price increases and the jump to $1.35 at the pump
Australian petrol companies are jacking up prices?
When I passed a petrol station this morning it was still around 112. Where did you see it?