The Future of Diesel ???

[Lambie]

OK so I'm so confused - diesel is meant to be more efficient so should it be the preferred fuel ? - but recently in our town diesel is almost 30c /litre more than unleaded.

What is the future of diesel fuel and the new generation of diesel cars/Paj?? What are the real 'drivers' of price at the pump- ie the real ones, not the media bullshit ?????

I'm so sick of hearing - oh China is causing it (perhaps this is real?? - if so if anyone that caught buying something made in china they should have their testiXles torn out), or its the US driving season???

If you were about to buy a new/2nd hand/4WD now why would you seriously consider a diesel??

This is a question I'd love to put to Kevin Rudd.

Geeze I'm pissed off the Australian fuel pricing/taxing system.

So nothing we say here on this forum will make a an ounce of difference but gee I feel good to vent my anger about the diesel diference (DD) !!!

If you are pissed off by this this (diesel farce) why not make yourself feel better by posting your gripe here !!

Go the diesels !!
Lambie

[sharky]

Here Here I agree fuel goes up do wages go up with it I THINK NOT! And Pollies dont give a rats bum because you and I are paying for their fuel NOT THEM. Would love to see them live on the average wage with the average persons debts, expenses etc

[Goody]

This was sent to me on a caravaners forum.
I AM NOT THE AUTHOR
But I agree with everything said and we must some how come up with an answer.
Thank god Ive got my Paj on LPG


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, ([email protected]) 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 missive on to everyone in your address book. Eventually someone might take notice.

[Eastie]

Whatever the argument it's likely to be above $2 a litre by the end of this year. It's a pitty people are so stupid to focus solely on the price of unleaded. Everyone pays for the high price of diesel.

[nj swb]

Fuel: The Mass Debate

NO-ONE till now has had the testicular fortitude to stick their necks out

Yes, someone is mass debating.

Contained herein is the WHOLE truth about the debate

No, it's not.

FIRSTLY ? DISBAND FUEL PARITY

Yes. Then our own oil will be sold overseas, because that's where they can get a higher price for it. Supply in Australia will drop, but this will decrease prices? No.

NUMBER TWO ? BARRELL PRICE

The barrel price determines the parity price. Abandoning the parity price isn't as simple as some would like it to be.

Starting to get the picture?

Yes - your picture is a distorted view.

NUMBER THREE ? LEVIES
This equates in total to about 46% of the price per litre.

At a retail price about $1 per litre, yes.

What is wrong is that it is a PERCENATGE!

No, it's not. Excise is a fixed amount per litre, to which GST is added. It is not a fixed percentage. If the price of petrol rises 10 cents per litre, the government gets an extra 1 cent per litre - that's the 10% GST. Somebody should have done some better research.

As I stated previously ? THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH.

No, they have a vested interest in a stable but growing economy. As the author noted, increasing fuel prices are having a huge impact on inflation, which is what the government DOES NOT want.

NUMBER FOUR ? GST - THE DOUBLE DIPP

Yes, the government is applying GST to the fuel excise, which amounts to about 4c per litre. The rest of his "maths" I couldn't follow - but I'm only a poor dumb engineer, and his logic was giving me a headache.

However, given his obvious failure to understand the way our fuel is taxed I'm not going to waste too much time contemplating his views on economics.

[marquis]

I believe diesel will be above $2 within weeks.

[mongoose]

the only bit i dont understand is the fact that the fuel price is indexed to the oil price
the oil price is indexed to the us dollar so as the us dollar goes down the gurgler so to speak of course the price per barrel is going to go up but why should that affect us since our dollar is so strong at the moment.
go figure!!

cheers
Adrian

[nj swb]

the only bit i dont understand is the fact that the fuel price is indexed to the oil price
the oil price is indexed to the us dollar so as the us dollar goes down the gurgler so to speak of course the price per barrel is going to go up but why should that affect us since our dollar is so strong at the moment.
go figure!!

Oil isn't going up ONLY because of the sinking dollar.

Demand is high (China's booming economy) and supply is both restricted (various natural disasters + Iraq) and uncertain (Iraq, plus a few other regions (from memory...))

High demand and restricted supply = high prices. The joys of a free market. We've been insulated (slightly) from movements in the oil price because the Aussie dollar isn't sinking with the US dollar.

[mongoose]

I suppose my point is I think the fuel companies are cashing in on the fact the oil price in part is going up because of the us dollar.
Kind of in the same way prices should have dropped a bit for stuff imported from the US but it hasnt.
Although I do agree with most of what youve said NJ
Quite frankly I think fuel companies and banks should never have been deregulated to increase competition as it clearly doesnt.

cheers
Adrian

[Dakar-01]

i liked my diesel. but opted for a petrol...this time... and no matter what the mathematics. and taxes... i dont understand why diesel has all of a sudden become more expensive than unleaded... one thing he did get right was that diesel is partl a biproduct of making unleaded... shouldnt that make diesel at least a little cheaper??...
I dunno... it just sux monkey nuts the price of juice for the boost.

Any oil on any of those other planets out there???

[dolphin]

i can not figure why deisel fuel is so expensive as all shipping trucks use it for our food supplies etc etc , deisel fuel should be the cheapest as it used to be. the problem is both the government and the sellers [ servo owners ] they really enouy me these days when they close off bouser pumps and say we have no fuel in the underground tanks , this is bull you know what.

[Lambie]

It would be kind of nice to know that some smart pollitician has an aid looking at informative websites to pick up public sentinement - pigs will fly and crocs will waddle through the corridors of Parliment House...............

Recently discussions with friends have shown an overwhelming rejection of these so called fuel efficient diesels - the current fuel price disparity digs a big hole for these 'new' dinasours when combined with the additional purchase price.

One could ask 'where are the balls' of the current fed pollies??? - but the ones that call the shots probably had none in the first place - for what ever reason - outcomes still the same.............................................. ....................