I'm looking at my fuel card statement and noticed that the fuel prices have been sitting in a $0.15/L range for last couple of months Even though crude price from July is down a HUGE %22 while the aussie $ is almost at the same levels as back in July still the price is not being reflected in the pump, why is that ?
Thievery. It is normal for the industry. Give the local news station a tweet or ping their facebook page. If they are running short on material they will run a piece and the prices will go down. That is how it normally goes.
but if they dropped the pump price to reflect lower crude prices then that would mean they wouldn't get any cream. Hence they don't. We should notify the ACCC, they'll pull the industry into line! (cough)
but if they dropped the pump price to reflect lower crude prices then that would mean they wouldn't get any cream. Hence they don't. We should notify the ACCC, they'll pull the industry into line! (cough)
but if they dropped the pump price to reflect lower crude prices then that would mean they wouldn't get any cream. Hence they don't. We should notify the ACCC, they'll pull the industry into line! (cough)
They are probably all using the same distributor and trucking company to source the fuel, and all have to pay the same minimum wage of the counter staff. They all have a business model that will standardise overheads over time (eg you run X number pumps because everyone else has X, you run Y number of lights because that's what customers expect). They all have to collect the same amount of excise and build that into the cost. I'm not surprised they all charge a similar price. One of the things that sticks in my mind from when I was an auditor: Even in the boom (bubble) time before the GFC, the large fuel companies at the consolidated level were only making 3 cents profit per litre after labour, compliance, raw material, processing, marketing, research, interest on capital, a thousand other things and of course their own company tax. I think this rose to 4 cents per litre after the GFC hit and they cut costs. Further costs are slowly being cut by cutting out expensive domestic refining. So think about that: 6 years ago at 1.80 per litre they were making 3 cents per litre profit. 6 years later at 1.57 per litre and after all the inflation we've suffered since then, how much money per unit sold are they making. They only make money as it is a volume product. If they can avoid lowering prices they will.
The oil price may well have dropped but so too has the $AU. REMEMBER ALL OIL IS PURCHASED IN $US. Regards Errol 43
90c AUD/litre here in Florida - and it's cheaper in other states. Has dropped over 10% in price in the last 3 months. In-laws just drove up to Georgia on a trip - $2.79 USD/gallon - equivalent to 83c/L up there. My last full tank of petrol in Australia (4WD) cost $134 in August. Don't miss Australia's high prices :/
When I lived in the states 8 odd years ago I told the locals what we paid back home. They worked out the gallon to litre price ratio and said if they tried that here You would have a mutiny. I believed them to lol.
You lot have it easy. Just filled up at our cheapest fuel station, the equivalent of $2.25 per litre. Ouch
