petrol prices
Got this sent in an email and posted it as an Interesting reading. The guy who wrote this added his name and challenged anyone from the government or fuel companies to challenge what he has said.
Fuel: The Mass Debate
Or How to Knock About 50c a Litre Off the Price Of Fuel
First and foremost this debate should be centred on Diesel NOT Unleaded. Why? You may ask. Just look at the increase in supermarket prices for your answer. While it may cost you $5 or $10 extra to fill your tank everything that is transported (which is everything) rises as Diesel rises. My average basket at the supermarket per week has increased on average $30 and that’s for one person. Australia’s whole economy is tied to Diesel and therefore it should be afforded the same priority and status as water i.e. an essential commodity.
I own a small transport company and I have had to significantly raise my prices twice in the past year just to maintain profit margins. This cost you money too.
I am compelled to write this letter because I am sick of all the namby-pamby pussyfooting around everyone seems to be doing about the current fuel debate. I have spent considerable time researching this area because it affects my income. Contained herein is the WHOLE truth about the debate, the WHOLE big picture, if you will. NO-ONE till now has had the testicular fortitude to stick their necks out and present the WHOLE argument about just how much we are being RIPPED OFF. If you want the truth and the WHOLE truth read on.
DON’T – Listen to spin doctors from the oil companies. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – Listen to the government – state or federal. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – pay too much attention to news or current affairs programs. THEY HAVE THEIR OWN AGENDAS.
So here we go, how to make fuel cheaper!
FIRSTLY – DISBAND FUEL PARITY
Parity, for those that don’t know, is government sanctioned price fixing (simple as that). Parity allows fuel companies to sell their products for the highest current price they find in the Asia Pacific region. It completely disregards supply and demand economics and eliminates any need for competition amongst themselves.
Don’t believe me? Just look at the price of Diesel. If you remember growing up when Diesel was always 10-15c p/l cheaper than Petrol you might understand this more.
How can a product that costs far less to produce (partially a by-product of producing Unleaded as well) and a product that Australia uses more of than any other fuel be MORE EXPENSIVE than Unleaded? Simple, ring Singapore, where they don’t use a lot of Diesel and import all their fuel, find out how much it’s selling for there and charge the same here – sound fair? NOT!
Any other industry who tried this one would be hauled of to the High Court quick smart and prosecuted for price fixing! Oh but hang on, our government ALLOWS them to do this
NUMBER TWO – BARRELL PRICE
That price the news loves to show us each night is the PREMIUM GRADE crude oil price. Australian oil companies DO NOT buy PREMIUM GRADE crude oil! In fact Australia produces around 70% of its own oil and imports about 30%. The cost of production per litre produced here is cheaper than that of imported fuel, but in no way is this factored into the pump price, because they don’t need to (SEE PARITY ABOVE) we pay a pump price based on PREMIUM GRADE crude oil price the same as if we imported all of it, say somewhere like Singapore! Starting to get the picture?
NUMBER THREE – LEVIES
Everyone knows that both State and Federal Governments take a large slice of the cost of a litre of fuel. This equates in total to about 46% of the price per litre. This money is used for infrastructure, road trauma etc. etc. so fair enough right? WRONG!
What is wrong is that it is a PERCENATGE! Look at this. If a litre of fuel costs $1.00 then the Government gets 46c p/l, right? A week later fuel rises to $1.10 p/l; the Government gets 50.6c p/l, bingo! Something tells me that in one week, their costs, IN NO WAY have gone up 9%!
As I stated previously – THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY! Why else do they allow fuel companies to maintain PARITY?
If they changed the tax (sorry, levy) to a flat rate tied to the GDP then the fuel price would drop drastically and immediately!
NUMBER FOUR – GST - THE DOUBLE DIPP
Now this one is outright "THIEVERY" and also applies to cigarettes and alcohol.
GST = Goods and Services Tax, correct?
46% or 46c in every dollar in the price of a litre of fuel is TAX (sorry; again, LEVY).
What part of LEVY is a good or a service? YOU CANNOT TAX, TAX RIGHT? WRONG!
You do the math.
Say fuel costs $1.00 p/l – the GST component = 9c
But hang on a minute 46% or 46c of this is TAX!
i.e., 4.14c of the GST is ILLEGALLY CHARGED ON THE TAX COMPONENT! Not much you say?
FOR EVERY LITRE SOLD IN AUSTRALIA EVERY DAY!
That equates to millions of free dollars for the Government! I’ll say it one more time - THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY!
The GST on fuel should be 5.4% not 10%. At $1.75 p/l this would drop the current price by around 8c p/l.
Feeling a little annoyed? You should be!
Even without disbanding parity and introducing real competition among fuel companies, you should be paying about 40c less per litre!
My name is Graeme Strempel, (gusto1@arach.net.au) and I run a small transport business, I happily welcome anyone, Government and fuel companies included to prove me wrong.
If you feel strongly about this issue then pass this message on to everyone in your address book. Eventually someone might take notice.
VAGABOND
Posts: 236
Date Joined: 04/06/07
I thought the government got
I thought the government got 46c per litre not 46% of the amount per litre? So no matter what the amount per litre they still get 46c?
Auslobster
Posts: 1901
Date Joined: 03/05/08
No, it's a percentage. If a
No, it's a percentage. If a litre is $1.00, the govt gets 46% of that (46 cents). If a litre is $2.00, the govt gets 46% of that (92 cents). So, as was stated, they have a VESTED INTEREST in keeping fuel prices high, 'cause it's more money for them.
All the talking and finger waving in the world isn't going to sort this out. I've stated it on another forum and I'll state it again here...one day of no fuel usage. Take a sickie, ride your pushie to work, sail a yacht, fly a hang glider....BUT DON'T USE ANY FUEL. That would fix the problem quick smart. But it'll never happen. Because we're all pathetic little sheep that at the end of the day have to drive our cars, no matter what.
You still see people speeding, you still see people launching off the lights like it's Saturday Night at the Motorplex. Are all these people getting their fuel at 30 cents a litre? No, I suspect they're just driving themselves further into debt, cementing their place as prisoners to the banks, corporations, and government for the rest of their lives.
Dreamweaver
Posts: 4688
Date Joined: 01/12/07
A pathetic is apathetic
Understand the frustration Oz , but what's pathetic is our societal apethy. They tried the one day without petrol (we did it), but never saw any press on it. The problem stems right back to the Eureca Stockade, ie, our desire for self. The motor vehicel is too entrenched in our ethos.
Colin Molloy
(Colin 2 - Co-founding member of the prestigious Colin Club)
Soon to be de "dreamweaver" ed!
Colin Hay
Posts: 10407
Date Joined: 23/10/07
Mr Strempel has a few good points
But I am unsure of his advice in parity is quite right.
Australia's export/import equation on oil has changed dramatically in recent years and we are now just over 50 per cent self sufficient in our oil needs. However, thanks to parity and our strong gas position, we have reasonably cheap fuel compared to most countries. I think the people in the UK are paying about three times what we do and they have a lot more oil than we do.
Certainly, there is a lot of room for GST and other Governent taxes to be reduced. But no government is going to cut back on cash making machines.
Diesel prices have largely skyrocketed because of changes brought about by environmental concerns.
Colin Hay
Moderator. Proud member of the Fishwrecked "Old Farts". Make sure your subscribed to Fishwrecked Reeltime http://fishwrecked-reeltime.com/
NOHA
Posts: 914
Date Joined: 24/06/07
Gov excise is 38c/liter.
Gov excise is 38c/liter. Flat, never changing, whatever the price. Where does the 46% your quoting come from.
Fuel parity has kept prices lower than price Australian refineries can produce it and turn a respectable profit for at least 8 of the last 10 years that I have been involved in making the stuff. How would you like to run a massive business with huge capital investmest and return low single digit profit margins. Just ask the guys from Mobil Port Stanvac in South Australia. They shut the gates as it was unecononic to run.
It is only because of the huge gobal demand for diesel at the moment (Bejing Olympics and Indian growth) together with the fact that no-one has invested in more refining capacity (because you dont make money in refining) that we are in this situation now.
Singapore..import fuel!!!!! WTF!!!
Four massive oil refineries producing and exporting to all the region and other parts of the globe to. Three of those refineries, singley on their own, are bigger than all Australian refineries put together.
I understand your passion and frustration as we all feel it too.
GST on fuel should go. We where promised no tax on a tax.
.
.
No Orange Hats Allowed
V8 twin turbo diesel....Ohh what a feeling!
Twin turbo..V8 diesel..Ohh what a feeling!!
No Orange Hats Allowed
VAGABOND
Posts: 236
Date Joined: 04/06/07
Yes NOHA! I thought the Gov
Yes NOHA! I thought the Gov excise was Fixed at a price per litre not a percentage of the $ amount per litre as quoted in the article? I think the GST on fuel seems to be the most area of debate at the moment?
Dreamweaver
Posts: 4688
Date Joined: 01/12/07
Agreed
As you said NOHA, the GST in my book constitutes a tax on a tax - that's dirty pool.
Didn't know the excise was fixed though - that's informative.
Colin Molloy
(Colin 2 - Co-founding member of the prestigious Colin Club)
Soon to be de "dreamweaver" ed!
Colin Hay
Posts: 10407
Date Joined: 23/10/07
Noha is spot on
There are a few global reasons for high oil prices. Speculators, lack of refinery capacity and the sudden surge in motor vehicle ownership in China are probably the main reasons.
(Colin 1 - Co-founding member of the prestigious Colin Club)
Moderator. Proud member of the Fishwrecked "Old Farts". Make sure your subscribed to Fishwrecked Reeltime http://fishwrecked-reeltime.com/
Dreamweaver
Posts: 4688
Date Joined: 01/12/07
sudden surge in motor vehicle ownership in China
Maybe we should buy their bikes then
Colin Molloy
(Colin 2 - Co-founding member of the prestigious Colin Club)
Soon to be de "dreamweaver" ed!
Colin Hay
Posts: 10407
Date Joined: 23/10/07
Hi Colin
Chinese car ownership has increased from 1 in every 1000 citizens to 24 in every 1000. It is predicted that car ownership in China will increase by 67 per cent to 40 cars for every 1000 citizens by 2010. With a population of 1.4 billion you can see where the oil is going.
(Colin 1 - Co-founding member of the prestigious Colin Club)
Moderator. Proud member of the Fishwrecked "Old Farts". Make sure your subscribed to Fishwrecked Reeltime http://fishwrecked-reeltime.com/
Dreamweaver
Posts: 4688
Date Joined: 01/12/07
Yes #1
You certainly can
Colin Molloy
(Colin 2 - Co-founding member of the prestigious Colin Club)
Soon to be de "dreamweaver" ed!
ody
Posts: 581
Date Joined: 30/12/06
Hi Ya, And their
Hi Ya,
And their polution is horrendous now. Imagine what it will be like in 2010!!!
Cheers.
***** Proud RECFISHWEST member ****
NOHA
Posts: 914
Date Joined: 24/06/07
And both the Chinese and
And both the Chinese and Indian Goverments subsides there fuel costs not tax them.
.
.
No Orange Hats Allowed
V8 twin turbo diesel....Ohh what a feeling!
Twin turbo..V8 diesel..Ohh what a feeling!!
No Orange Hats Allowed
Dreamweaver
Posts: 4688
Date Joined: 01/12/07
Why is that Noah?
Wish we did! Costs us $200.00 - $250 F/N! Tried advertising for car pooling between here and Albany - one tentative bight so far - and a 'black flag waving liberalist' (his discription) communist from rocky gully.
Colin Molloy
(Colin 2 - Co-founding member of the prestigious Colin Club)
Soon to be de "dreamweaver" ed!
Colin Hay
Posts: 10407
Date Joined: 23/10/07
Sounds like interesting company Colin
You would fit in well with him if you wear your new hat.
(Colin 1 - Co-founding member of the prestigious Colin Club)
Moderator. Proud member of the Fishwrecked "Old Farts". Make sure your subscribed to Fishwrecked Reeltime http://fishwrecked-reeltime.com/
Dreamweaver
Posts: 4688
Date Joined: 01/12/07
LOL # 1
The hat's not crazy enough - took me an hour to get the loon off the phone
Colin Molloy
(Colin 2 - Co-founding member of the prestigious Colin Club)
Soon to be de "dreamweaver" ed!
saltatrix
Posts: 1081
Date Joined: 30/03/08
Doh!
10% of $1.70 per litre is 17 cents GST combined with 38 cents flat road tax.
Not bad thought the two combine to about 50 cents.
Aparrently fuel is to rise to $2.30 around christmas? Maybe the media are hyping the sensationalism.
Then again out of the blue production appears to have been increased again which will steady the price once again.
Angling tourism is worth $10 billion to the Australian economy - 90000 jobs; more than any sport; spread the word
saltatrix
Posts: 1081
Date Joined: 30/03/08
My post went missing
My post went missing
Again, briefly
Currently Hedge funds are purchasing crude oil futures pushing up the price of oil, mainly because the US dollar is crashing. The oil is stored in America, Louissiana?
The Road levy on fuel is 38 cents
http://www.abc.net.au/news/stories/2008/02/07/2156478.htm
China is using an increasing amount of energy although that may slow when the Beijeng games start and all the buildings the Chinese have been building screeches to a grinding halt. Possibly to some extent the Gas, oil and Iron the Chinese have been purchasing will ease greatly too.
Angling tourism is worth $10 billion to the Australian economy - 90000 jobs; more than any sport; spread the word
synthos
Posts: 522
Date Joined: 23/06/07
Just wait
Just wait till we have to pay for friggin carbon credits theres another 20cents
hlokk
Posts: 4290
Date Joined: 04/04/08
China is expanding at a
China is expanding at a ridiculous rate. Areas that would have been green pastures 20 years ago, are now chocked full of high-rise buildings. If you have a look at the amount of power stations they build in a week, its mind boggling. I doubt the olympics are any more than a drop in the ocean compared to whats going on in the rest of china. Its certainly not going to come to a grinding halt when the olympics are finished.
--------------
Always interested in someone to go fishing with
Colin Hay
Posts: 10407
Date Joined: 23/10/07
And don't forget India
(Colin 1 - Co-founding member of the prestigious Colin Club)
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