Why Did Fuel Prices Increase despite The Cut in Fuel Excise?

[Deactivated] on 13/05/2022 - 14:13

It seems the less the government does about the cost of living the better it is. Can any economic experts(everyone) explain the craziness of the government policies that are fuelling inflation?

They don't want house prices to crash but affordable housing is a priority. Want wages to increase but inflation down. If rates increase then rents have to increase. How do people afford to even rent?

People have a lot of money in their accounts. Let them spend. Why are governments giving free money and increasing prices further?

In the name of helping low-income families, they are fuelling price rises.

Poll Options

  • 53
    Government should do more
  • 271
    Government should do nothing
Financial Federal Election Fuel

Comments

      • Jason Genova on 13/05/2022 - 16:00
        +3

        i dont - i live in the burbs

    • DiscoJango on 14/05/2022 - 18:42

      Great job, enjoy going grocery shopping on the rain on your bike, or better yet, going to pick someone up from the airport!

      • Jason Genova on 14/05/2022 - 19:05
        +3

        lol nice try champ

        i live within 5 minutes of a shopping village

        house paid off, mid 30s, living the dream :D

        • DiscoJango on 14/05/2022 - 21:47
          -1

          what a sad life, just staying at home and only being able to go somewhere within cycling distance.

          • freshofftheplane on 14/05/2022 - 22:54
            +6

            @DiscoJango: Have you heard of Uber?
            You sound jealous.

          • cookie2 on 15/05/2022 - 17:55
            +1

            @DiscoJango: Ahh ofcourse, without a car we become a recluse, being stuck within a particular km radius bubble. You went so negative, so quickly.

          • xavster on 16/05/2022 - 17:43

            @DiscoJango: It's not that bad, I've never owned a car in my life. I've managed to build a healthy real estate portfolio, own an accounting/financial advisory firm and have two kids, all without a car, so it can be done!

            I do own motorcycles though.

            Two wheels FTW!

        • kalithreaver on 16/05/2022 - 08:30

          what do you do for work? how did you pay off house so quick?

      • StalkingIbis on 15/05/2022 - 10:13

        Click and collect, or pay the $2 delivery charge.

      • cookie2 on 15/05/2022 - 17:52
        +2

        We pay for creature comforts. Some ppl arnt as fussed for particular comforts. Wait till it stops raining, go another day, get home delivery, check the weather and take a jacket. And lots of ppl just get an uber from the airport. It's really not as crazy an idea as you make it out by your comment.

      • Janko on 17/05/2022 - 11:54

        10k saving gives many options for picking someone up at the airport, and easy to delay shopping until it's not raining, or do online.

        If my parents weren't elderly and didn't live 80 minutes away, I'd do the same.

        Sucks paying full rego doing 3000 km/yr while people who spend > $28/wk on tolls (and thus use roads a lot!) get rego free.

  • pegaxs on 13/05/2022 - 16:09
    -2

    Because LaboUr and Albanese…

  • coolrunnings on 13/05/2022 - 16:10
    +1

    The Australian dollar has weakened by almost 10% recently.

  • WreckTangle on 13/05/2022 - 16:10
    +1

    People have a lot of money in their accounts.

    Lol

    • [Deactivated] on 13/05/2022 - 16:24
      +5

      It’s widely reported that Australian household savings increased in the past 2 years

      • Drakesy on 13/05/2022 - 17:42
        +4

        People are saving more because we were in a recession prior to covid and so naturally it turns into more of a hoarding mentality with money.

        The recession never really went away, more was put on hold when we flashed $750 billion about.
        Now the sugar hit is over and the hangover is catching up with us.

      • cookie2 on 15/05/2022 - 17:56

        I think they mean Wildly reported. I think they skipped me tho.

        • [Deactivated] on 16/05/2022 - 09:01

          Me as well. Even though I don't have huge savings, my savings definitely increased past 2 years mainly due to low-interest rates. I am saving 500$/ month after fixing it for 2 years on mortgage.

    • AustriaBargain on 13/05/2022 - 19:35
      +1

      The average OZBargainer is on an income of 200k, either that or most of you are lying about your incomes here.

      • Some Human on 14/05/2022 - 15:56
        +2

        I thought it was 300k? Did they all take a pay cut?

        • Jackson on 15/05/2022 - 13:28
          +2

          300k - 80k car investment = close enough to 200k

  • rektrading on 13/05/2022 - 16:23
    +1

    The price is high because of sanctions.

  • Hvrd on 13/05/2022 - 17:13
    +2

    Strong USD and weak AUD
    Price of barrel is still high
    And because the petrol stations can cause you can't do anything about it

  • SF3 on 13/05/2022 - 17:24
    +3

    Why are governments giving free money

    Because election.

    • [Deactivated] on 13/05/2022 - 17:42
      +1

      Addicted to power. Do anything and everything to stay in power or get to power

    • [Deactivated] on 13/05/2022 - 20:15

      Unrelated, why is Jv in penalty box? What is penalty box? What is the reason for penalty box? Why I didn’t been in penalty box despite my controversial views and stupid comments?

      [Deactivated] on 13/05/2022 - 20:15 (Collapsed - Offtopic. Show)
      • TEER3X on 14/05/2022 - 08:54
        +2

        Just don't attack any user on this site and you should be fine for the most part

  • RockyRaccoon on 13/05/2022 - 17:35
    +2

    Simple - Higher prices - less consumption - climate benefits. So whats the problem.

    Problem is that most who support climate also dont want it to affect their own standard of living.

    • [Deactivated] on 13/05/2022 - 17:38

      There is a lot of hypocrisy in left and people in general

    • Drakesy on 13/05/2022 - 17:43
      +2

      I'd actually debate that, many of those would recognise that the consumable driven western economy isn't sustainable and only sets about trapping you into a debt cycle.
      Reducing consumption and thus helping the climate would tick many people's boxes.
      Admittedly places like Ozbargain probably don't exactly help the cause though

      • [Deactivated] on 13/05/2022 - 17:46
        -1

        OzBargain helps. If you are irresponsible spender, then you spend regardless of OzBargain or not.

  • AustriaBargain on 13/05/2022 - 19:34
    +8

    Government should do nothing. Fossil fuels do not need life support when there should be a burgeoning EV market by now. If anything the government should be removing taxes from EVs.

    • [Deactivated] on 13/05/2022 - 20:04
      -3

      One evil to another. At the end of the day both promotes consumption of energy.

      • Diji on 14/05/2022 - 13:27
        +5

        There's a big difference in the efficiency of generation of that energy though.

      • SydStrand on 14/05/2022 - 18:13
        +4

        What kind of dumb non-statement is this? Yes, civilisation needs energy. Even going full mountain man with off-grid panels and burning your own shit 'consumes' energy. There's a huge difference between burning imported fossil fuels and taking advantage of abundant, renewable resources like solar or wind.

        • [Deactivated] on 14/05/2022 - 18:43
          +1

          I was talking about removing taxes for EV’s as it will be another freebie. Which will lead to increase in price of EV. If people want to buy EV let them buy. Governments shouldn’t involve in it. You should know the real cost of EV. It isn’t totally green as people think it is.

          • greatlamp on 14/05/2022 - 21:14
            +1

            @[Deactivated]: Even if EVs produced the same amount of negative impact to the climate, we should still be supporting them for national security reasons.

            We import oil, however we have enough coal to burn for over 200 years. We should be the first country to ban ICE vehicles

            • rektrading on 14/05/2022 - 23:37
              +3

              @greatlamp: The EV entry price is about 300% of an ICE. Australia can't afford to ban ICE.

            • Krankite on 16/05/2022 - 08:08
              +1

              @greatlamp: It's never that clear cut when it comes to national security, there is not and probably never will be a battery powered vehicle suitable for combat. That means the military needs large fuel reserves and if those reserves aren't shared with a domestic market they become more expensive and harder to maintain.

              • greatlamp on 16/05/2022 - 08:20
                +1

                @Krankite: I'm not some tree hugging lunatic.

                You ban ICE vehicles for consumers by 2030 or 2035, give the market enough time to react.

                Leave an exception for commercial and industrial use, and of course military and aviation.

                I don't know enough about military fuel reserves to comment on your second point, but intuitively it seems like there is no such thing as a fuel reserve for domestic consumers, just holding tanks at the ports that will run dry very quickly if imports were to stop.

                there will always be some applications where fuel is needed so the military will be able to rotate their stock.

                • Krankite on 16/05/2022 - 08:49
                  +1

                  @greatlamp: I agree with a transition away from ICE and 2030-2035 is a sensible timeline. I would rather see a carbon tax on new vehicles rather than an outright ban but given that most manufacturers are switching over due to demand from larger markets unless we relax our safety standards to match India/China it's a mute point.

                  It's always tough comment on climate stuff because often people who are in favor of taking action feel the need to be more scientifically accurate than those who oppose it so will speak with less certainty that can be easily taken out of context. I wasn't disparaging the transition away from ICE just wanted to point out that arguing for it on the basis of national security isn't a clear cut argument.

                • rektrading on 16/05/2022 - 09:40

                  @greatlamp:

                  As of January 2021, approximately 20.14 million motor vehicles were registered in Australia, the majority of which were passenger vehicles.

                  It's not economically feasible to replace all them with EVs.

                  • greatlamp on 16/05/2022 - 14:46

                    @rektrading: Do you all not understand how the bans work in Europe and Japan?

                    You ban the sales of new vehicles, the existing vehicles remain.

                    • rektrading on 16/05/2022 - 14:56

                      @greatlamp: A properly maintained ICE can run for 42Y.

                      It'll take 69Y before all the ICE get retired.

                      • greatlamp on 16/05/2022 - 15:52

                        @rektrading: I'm ok with that, however I think it's safe to say less than 10% of vehicles on the road are over 20 years old.

                        Like I said to Krankite, I'm not some tree hugging lunatic, I understand some ICE vehicles will remain. I am merely pointing out that if we are pro coal - as is in the interests of our country - we should also be pro electric vehicles.

                        • rektrading on 16/05/2022 - 15:55

                          @greatlamp: Being pro EVs doesn't require banning ICE.

                          ICE will slowly die when oil goes to $147 and stays there for years and years.

                          • greatlamp on 16/05/2022 - 15:58

                            @rektrading: Do you agree shouldn't be applying additional taxes on electric vehicles at least?

                            • rektrading on 16/05/2022 - 15:59

                              @greatlamp: No taxes.

                              Nature will take of ICE when the wells run dry.

                              I just 🙏 I'm in a place far away when that happens so that I don't get caught in an oil war.

                • trapper on 16/05/2022 - 12:33

                  @greatlamp:

                  You ban ICE vehicles for consumers by 2030 or 2035, give the market enough time to react.

                  Better start building some power stations asap then.

            • Drakesy on 16/05/2022 - 10:46

              @greatlamp: Not to mention copious amounts of sunshine

  • Woody982 on 14/05/2022 - 08:50
    +1

    Good question, diesel was around $1.85 for me around a month ago and has since creeped to about $2.10…

    Ridiculous considering petrol is around $1.88 still…

    • Some Human on 14/05/2022 - 15:56
      +1

      2.15 in Melbourne

      • cute as duck on 14/05/2022 - 23:39

        1.99 cheapest in Melbourne (and Australia) via 7 Eleven. Mock location and fuel up like many OzBargainers

        https://projectzerothree.info/

        • Some Human on 15/05/2022 - 00:10
          +1

          I have 40 litres in my garage and 3/4 of a tank I paid $1.68 per litre for. That's enough until the cycle comes back down.

          Thanks anyway.

          • cute as duck on 15/05/2022 - 00:12
            +1

            @Some Human: Nice. I still got 2 Jerry cans of E91 from February I paid $1.08 for. Need to go on a road trip next week to use it up been sitting too long as is in garage

        • Woody982 on 15/05/2022 - 08:07

          I've 150kms away from Adelaide. I have like 7 servos in my triangle of towns, but they stay the same prices really.

        • [Deactivated] on 15/05/2022 - 16:09

          BP near mine is close to $1.70 and United I think $1.64

  • TEER3X on 14/05/2022 - 08:53
    +2

    Government is a moron, splashing cash around when there's obvious inflation.

    There's a recession we had to have, and it needed to happen months ago.

    Now the economy is going to have a really hard landing.

    • Yuri Lowell on 16/05/2022 - 18:51

      Anything to make Labor look bad when they get in.

  • HelpMeiCantSee on 14/05/2022 - 11:54

    Oil prices are set and governed by the cartel- OPEC.

  • huon9 on 14/05/2022 - 12:32
    +4

    The third option should've been THIS government should do nothing.

  • LFO on 14/05/2022 - 13:45
    -1

    Rather than the government, what are consumers doing?

    Using vehicles that guzzle less fuel?
    Traveling in groups?
    Public transport?
    Electric bicycles?
    Walk?

    Nope.
    They just keep fueling up AND leaving engine idling whilst texting and lunching.

    Diesel at $21.00 per litre may do the trick.
    If not, $210.00 will.

    • rektrading on 14/05/2022 - 15:14

      Diesel at $21.00 per litre may do the trick.
      If not, $210.00 will.

      People better 🙏 that doesn't happen because that is the Mad Max ending.

    • [Deactivated] on 14/05/2022 - 15:59
      +4

      Reliable transport in suburbs?

      No

      Walk wherever possible?

      Yes

      Travelling in groups?

      If possible yes but almost never works

      E-bikes or bikes without bike lanes on freeway?

      Suicide

      • LFO on 16/05/2022 - 13:33
        -2

        No
        If possible yes but almost never works
        Suicide

        And that is why they keep paying.
        Any suggestion of change gets the NOT POSSIBLE chorus.

        $21.00 per litre will be convincing.
        Otherwise $210.00

        • [Deactivated] on 16/05/2022 - 13:42
          +1

          You never really lived in suburbs, do you?

          For me to go to work from home, it takes 15 minutes in the car. There is no direct public transport available. I have to change 2 trains and 2 buses and walk like 5 kms and it takes 2 hours.

          And no one works at my work close to my home. That's the reason it almost never works.

          $21.00 per litre will be convincing.
          Otherwise $210.00

          Do you think the economy or your lifestyle will be remotely similar to what it was now if prices reach that level?

          • LFO on 17/05/2022 - 12:38

            @[Deactivated]:

            You never really lived in suburbs, do you?

            Living in Australia there are not that many options for "living" other than living in suburbia.
            So no, live and lived in suburbia (aka hell on earth) always.

            And no one works at my work close to my home

            Perhaps relocating or a different job location might help.

            Do you think the economy or your lifestyle will be remotely similar

            It will be radically different. Radically better.

            Nothing will change unless we change.

    • pogichinoy on 14/05/2022 - 19:19
      +1

      Diesel is the backbone of supply chain transport of the world.

      It would be suicide if that were to happen.

      • LFO on 16/05/2022 - 13:29

        Diesel is the backbone of supply chain transport of the world.
        It would be suicide if that were to happen

        Suburban driving is not the supply chain.
        Little "builders" driving all over the place are not the supply chain.

        Horses to horses.

  • MontyMacaw on 14/05/2022 - 16:48
    +1

    The price of oil in US$ is in the same range as it was before the cut. The A$ has dropped about 7%. There are cycles in the prices by fuel companies which range in the 25x to 40c per litre range. Smash all that like an avocado on toast and you get a mixed bag but in real terms it is dearer in A$’s over all because of all of these things to import fuel since the tax cuts.

  • DiscoJango on 14/05/2022 - 18:40
    +3

    Corporate greed, nothing more

    How else do you explain one shell servo at $2.15L and the rest at $1.79L, its (the price) is just randomly set with the hope that someone will pay more than they should

    If it really was by the barrel, then all those shell servos would be the exact same price

    Everyone just jumping on the covid and ukraine bandwagon, like all of a sudden every liter of petrol, every piece of timber came from russia…

    • rektrading on 14/05/2022 - 18:48

      May be their cost is higher.

    • StalkingIbis on 15/05/2022 - 10:16

      maybe they cant get fuel refill for another 5 days, and only have enough fuel in stock to supply 2 normal days worth, so they determine that even though sale of fuel will slow down, they will still empty their reserves just before restock time, and have secured as much money as they could for the amount of fuel they had.

  • Herbse on 14/05/2022 - 18:55
    +1

    Because the fuel companies have zero oversight and regulations on price.

  • gimli on 14/05/2022 - 19:13
    +3

    because scumdog scomo is a nasty liar

    • DiscoJango on 14/05/2022 - 21:48
      -4

      they all are?

      doesnt matter who you vote for

      the 'opposition' will always bag out the current regime, and then claim how if only they were in power, they would be doing the right thing

      • gimli on 15/05/2022 - 05:53
        -2

        True but scumdogs the worst weve had in a while.

        Albo is incompetent

        Luckily we have other parties for my electorate

        • Zondor on 15/05/2022 - 10:55
          +3

          Albo hasn't been in power and his projects as Minister for transport on time and on budget. Not being able to quote random bs numbers for journo's =/= incompetant.

          • gimli on 15/05/2022 - 11:05
            +2

            @Zondor: I hope he ends up being a better performed in the job.

            Don't care so much about the Gaffes etc. When he speaks he seems to lack passion/a vision or something. Maybe that's a good side from a policy perspective but time will tell.

            • Zondor on 17/05/2022 - 16:08

              @gimli: Yeah I agree in that sense. If he were against anyone else he'd have no hope. Thankfully he's a quiet bloke against a man that wont shut his mouth.

      • abuch47 on 15/05/2022 - 16:43
        +2

        There are way more choices than just the opposition. But there is also nothing objectively good about historic corruption of the last decades government. https://www.mdavis.xyz/govlist/

  • pogichinoy on 14/05/2022 - 19:49

    Why are governments giving free money and increasing prices further?

    Because it keeps the people from rioting if they cannot afford to live with the basics.

    Better to fk up the economy than have mass riots of disgruntled citizens.

  • Cluster on 14/05/2022 - 23:01
    +2

    Unfortunately the Australia dollar has lost about 10% of its value versus USD over the past two weeks. Oil prices are back above US$110/bbl. Even with the 22c tax cut many Australians are paying $2/L. Demand for diesel is high but supply has been cut by over a million barrels per day to Europe, so they're now shopping elsewhere and driving the price up. Russia is a big producer of heavy crude.

    You can see the wholesale price of fuel for yourself: https://www.aip.com.au/pricing/terminal-gate-prices

    We import 90% of the oil and liquid fuels we use per day. We're energy rich in coal, gas, and uranium, but really poor in oil. The long term solution is to stop using oil for transport. I would love to refuel my car from the light that falls on my roof.

  • OzzyOzbourne on 14/05/2022 - 23:55

    Because they can

  • Zondor on 15/05/2022 - 10:49
    +3

    "wow now less tax is paid we can charge more and earn more profit!"

  • FlyingMiffy on 15/05/2022 - 11:06
    +1

    Price gouging but won't be able to do anything about it. The price of oil has actually trended down but Shell and Co can take profits without much vetting.

    • rektrading on 15/05/2022 - 11:14

      Oil shows higher highs and higher lows.

  • locknuts on 15/05/2022 - 12:20
    -2

    The government should almost always do less in economic matters. Australians aren't usually taught basic economic principles and so we vote for things that sound good but don't work. The failures of the government policies we vote for are a reflection of our own ignorance.

  • Thaal Sinestro on 15/05/2022 - 14:23

    Another good example if failed government intervention is child care. When governments increase subsidies, the price of child care increases and the owners make an even greater profit.

    Greedflation. The solution is price fixing, setting a maximum price for services, land and housing in Australia (most other expenses are imports and cannot be price fixed).

    • rektrading on 15/05/2022 - 14:26

      The gov doesn't have the power to set prices on oil or products produced by oil.

      The same goes for land. The price is set by the market once it changes from Crown land to private.

      • Herbse on 15/05/2022 - 20:50
        +1

        The government can control how much land value increases by removing archaic tax incentives that were introduced to help increase housing, but they never did. Instead they have propped up the prices of houses to unsustainable levels.

        And the government could have rid us of our reliance on foreign oil by investing in EVs years ago, instead of telling us they will "ruin the weekend".
        We have the largest deposits of lithium in the world and can develop our own battery technology and charging infrastructure. Instead we've broadened our coal and gas interests.

        • rektrading on 15/05/2022 - 22:10

          May be they're selling coal and gas now while there is still a big demand for it and saving the lithium for future generations.

  • abuch47 on 15/05/2022 - 16:11

    Because this government has no idea what it's doing except to help it's mates profit

  • BluebirdV on 15/05/2022 - 17:35

    I hope house prices will drop in half or less.

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