AU$ falls.Rises in Petrol and transport costs.

E

errol43

New Member
Silver Stacker
It looks like the AU$ has fallen to below 90 UScents.

With oil prices going up in US $, this will mean a spike in pump prices to maybe $1.60 a litre..Transport costs will rise as will the price of foodstuffs. Will Inflation rise?

Imported goods will become dearer so buy your TV's, whitegoods and cars now. :)

IMO the next couple of years will not be easy for a lot of people.

Regards Errol 43

What do you think?
 
I'm under the impression that our LPG and fuel prices are linked to foreign markets (Singapore?) so we pay their higher prices even though it's locally produced. I guess as a business if you can get more $ for your product overseas then that's where you send it.

Unfortunately we've had so much time to reduce our reliance on oil and not a lot has been done. Alternative fuels aren't viable because we still want to farm and transport as we have been doing with oil but just change the fuel.

Food gets hit 2x when oil prices are up as the fertiliser/farming costs go up, then the transport costs. A good start might be to stop trucking food across the country.
 
errol43 said:
It looks like the AU$ has fallen to below 90 UScents.

With oil prices going up in US $, this will mean a spike in pump prices to maybe $1.60 a litre..Transport costs will rise as will the price of foodstuffs. Will Inflation rise?

Imported goods will become dearer so buy your TV's, whitegoods and cars now. :)

IMO the next couple of years will not be easy for a lot of people.

Regards Errol 43

What do you think?
Click to expand...

Errol you havent blamed Campbell for this!

The facts are errol you lower interest rates you create inflation, and you guessed it the blame lies squarely with the overspending labor cohorts in canberra.
 
I don't think the dollar and oil prices have much in common to fuel prices. Look at the Australian dollar when it was strong fuel was still over priced as well as everything else, in Australia we get ripped off because we are still prepared to pay for it.
 
Actually no, our fuel prices have been low for quite some time. There has been a fuel price war going on for quite some time in Oz. The big boys are trying to turn the market into a duopoly (or hey, a monopoly eventually, who knows?).
 
From http://www.cheaperpetrolparty.com/Oil_Price.php

We use the exchange rate AU dollar against the US dollar again based on the Bloomberg Benchmark Currency Rates and again this is updated throughout the day.

The calculation is: Cost of 1 barrel of crude in US dollars divided by 159 litres = cost of 1 litre of crude in US dollars.
Apply (divide by) the exchange rate -> cost of 1 litre of Crude in AU dollars.

Example: Crude oil is US$ $101.12 per barrel. Divide by 159 => 0.6360 US dollars per litre.
Exchange rate = $0.9143 US cents for 1 AU dollar => 0.6956 AU dollars per litre.

If the price quoted on TV, Radio or Bloomberg is $101.12 per barrel, then that is equivalent to 69.56 (Australian) cents per litre.
So why are we paying 152.000 cents? Who pockets the difference?

Who Takes What out of our $1.520?
1 litre of petrol consists of:

13.825 cents GST
38.143 cents in excise
1.2 cents for the service station (Note: The credit card companies get more)
69.56 cents Crude oil (based on today's price and today's exchange rate)

That is a total of 51.96 cents direct tax + 70.76 cent in raw product and service station margin, making a total of 122.72 cents

Our fuel prices have been low for quite some time? Depends on how you look at it.
 
Gary007 said:
I don't think the dollar and oil prices have much in common to fuel prices. Look at the Australian dollar when it was strong fuel was still over priced as well as everything else, in Australia we get ripped off because we are still prepared to pay for it.
Click to expand...

Amen! That's why there's such a massive bubble in the real estate market.
 
Gary007 said:
I don't think the dollar and oil prices have much in common to fuel prices. Look at the Australian dollar when it was strong fuel was still over priced as well as everything else, in Australia we get ripped off because we are still prepared to pay for it.
Click to expand...

I think it might still have some impact as all Texas Crude and Tapis oil prices are in US $. Things might well change as oil refineries in Australia are closed and petrol is imported direct from Singapore. Alan Kohler on the ABC always used to state that every cent movement in the Australian $ meant petrol prices at the pump would change. (except when there is a price war for market share)

Bow as far as Mr Newman is concerned, I don't have to pretend that I am the opposition, Clive Palmer has taken that role. :D

Regards Errol 43
 
errol43 said:
Gary007 said:
I don't think the dollar and oil prices have much in common to fuel prices. Look at the Australian dollar when it was strong fuel was still over priced as well as everything else, in Australia we get ripped off because we are still prepared to pay for it.
Click to expand...

I think it might still have some impact as all Texas Crude and Tapis oil prices are in US $. Things might well change as oil refineries in Australia are closed and petrol is imported direct from Singapore. Alan Kohler on the ABC always used to state that every cent movement in the Australian $ meant petrol prices at the pump would change. (except when there is a price war for market share)

Bow as far as Mr Newman is concerned, I don't have to pretend that I am the opposition, Clive Palmer has taken that role. :D

Regards Errol 43
Click to expand...

Competition in Australia has long gone in petrol prices, if a war starts in the Middle East prices are up overnight if the dollar is strong prices may drop 1 or 2 cents over a month or two. You know Indonesia subsidies it's fuel they only pay around 50c AUD per ltr now that would be a double edge sword, but it would get the economy going in the short term, better than pink batts and hand outs.
 
Gary007 said:
errol43 said:
Gary007 said:
I don't think the dollar and oil prices have much in common to fuel prices. Look at the Australian dollar when it was strong fuel was still over priced as well as everything else, in Australia we get ripped off because we are still prepared to pay for it.
Click to expand...

I think it might still have some impact as all Texas Crude and Tapis oil prices are in US $. Things might well change as oil refineries in Australia are closed and petrol is imported direct from Singapore. Alan Kohler on the ABC always used to state that every cent movement in the Australian $ meant petrol prices at the pump would change. (except when there is a price war for market share)

Bow as far as Mr Newman is concerned, I don't have to pretend that I am the opposition, Clive Palmer has taken that role. :D

Regards Errol 43
Click to expand...

Competition in Australia has long gone in petrol prices, if a war starts in the Middle East prices are up overnight if the dollar is strong prices may drop 1 or 2 cents over a month or two. You know Indonesia subsidies it's fuel they only pay around 50c AUD per ltr now that would be a double edge sword, but it would get the economy going in the short term, better than pink batts and hand outs.
Click to expand...
The government adds like 50c through taxes to the price, don't worry about subsidising it, just take the taxes off.
 
col0016 said:
Gary007 said:
errol43 said:
I think it might still have some impact as all Texas Crude and Tapis oil prices are in US $. Things might well change as oil refineries in Australia are closed and petrol is imported direct from Singapore. Alan Kohler on the ABC always used to state that every cent movement in the Australian $ meant petrol prices at the pump would change. (except when there is a price war for market share)

Bow as far as Mr Newman is concerned, I don't have to pretend that I am the opposition, Clive Palmer has taken that role. :D

Regards Errol 43
Click to expand...

Competition in Australia has long gone in petrol prices, if a war starts in the Middle East prices are up overnight if the dollar is strong prices may drop 1 or 2 cents over a month or two. You know Indonesia subsidies it's fuel they only pay around 50c AUD per ltr now that would be a double edge sword, but it would get the economy going in the short term, better than pink batts and hand outs.
Click to expand...
The government adds like 50c through taxes to the price, don't worry about subsidising it, just take the taxes off.
Click to expand...

Yeah we would have better luck farting against thunder than having any taxs removed.. :)

***EDIT***

The Government does do some good things but if they see people with money there answer is ''SH*T time for a tax increase!'' and well we do it just tell the people ''They live in the lucky country'' LOL
 
systematic said:
From http://www.cheaperpetrolparty.com/Oil_Price.php

We use the exchange rate AU dollar against the US dollar again based on the Bloomberg Benchmark Currency Rates and again this is updated throughout the day.

The calculation is: Cost of 1 barrel of crude in US dollars divided by 159 litres = cost of 1 litre of crude in US dollars.
Apply (divide by) the exchange rate -> cost of 1 litre of Crude in AU dollars.

Example: Crude oil is US$ $101.12 per barrel. Divide by 159 => 0.6360 US dollars per litre.
Exchange rate = $0.9143 US cents for 1 AU dollar => 0.6956 AU dollars per litre.

If the price quoted on TV, Radio or Bloomberg is $101.12 per barrel, then that is equivalent to 69.56 (Australian) cents per litre.
So why are we paying 152.000 cents? Who pockets the difference?

Who Takes What out of our $1.520?
1 litre of petrol consists of:

13.825 cents GST
38.143 cents in excise
1.2 cents for the service station (Note: The credit card companies get more)
69.56 cents Crude oil (based on today's price and today's exchange rate)

That is a total of 51.96 cents direct tax + 70.76 cent in raw product and service station margin, making a total of 122.72 cents

Our fuel prices have been low for quite some time? Depends on how you look at it.
Click to expand...
Graphically:

6824_petrol_snapshot.png
 
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