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Buri_ZR6 Experienced

Buri_ZR6

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Petrol sting here to stay

19apr06

MELBOURNE drivers have been warned to brace for petrol prices as high as $1.40 a litre as global oil prices surge again.

http://www.heraldsun.news.com.au/common/st...55E2862,00.html

Crude oil hit $US70.86 a barrel in London trading last night, prompting motoring groups to warn it would take just days for a flow on effect at the petrol pump.

Drivers in Melbourne should expect to pay more than $1.35 a litre for unleaded fuel, the RACV warned, while prices in regional and remote areas would be even higher.

A more dire prediction came from Service Station Association chief executive Ron Bowden, who said petrol at $2 a litre could be a reality if oil prices continued to rise.

"You're living in a fool's paradise if you think you're just weathering a storm and everything will go back to normal. Normal is high energy prices," Mr Bowden said.

"It's going to continue to go up in the years ahead."

RACV spokesman David Cumming said the oil price hike would force the retail market out of a discount cycle and up from the $1.24 seen around Melbourne yesterday.

Mr Cumming said competitive market forces, a nervous world market and a built-in "war premium" helped push prices up.

"You only need to have sanctions on Iran or another explosion in Iraq and the sky's the limit," he said.

Last September, petrol hit an Australian record of $1.40.

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Oil rise threatens to hold economy to ransom

Email Print Normal font Large font By Josh Gordon

April 19, 2006

http://www.theage.com.au/news/business/oil...5344082632.html

MOTORISTS have been told to brace for pump prices of more than $1.35 a litre, amid warnings that Australia's reliance on oil imported from the Middle East and North Africa is set to soar.

Crude oil prices reached a near-record $US70.30 a barrel yesterday, spurred by geopolitical tensions in Iran and Iraq, conflict in Nigeria, refinery problems and booming demand.

The RACV's government and corporate relations manager, David Cumming, said unleaded petrol prices in Melbourne were likely to top $1.35 a litre by the middle of the week, compared with an average price of 123.8¢ a litre yesterday.

"You only need to have sanctions on Iran or another explosion in Iraq and the sky's the limit," Mr Cumming said.

Service Station Association chief executive Ron Bowden was even more pessimistic, warning petrol prices as high $2 a litre were "quite possible".

"You're living in a fool's paradise if you think you're just weathering a storm and everything will go back to normal," Mr Bowden said.

As a rough rule of thumb, when the world price of oil rises by $US1 a barrel, Australians pay an extra 1¢ a litre at the bowser, although it can take weeks to flow through. And every time the Australian dollar falls 1¢ against the US dollar, the price at the bowser rises about half a cent.

JPMorgan economist Jarrod Kerr said the recent weakening of the Australian dollar has added to the pain of high world oil prices, potentially hurting economic growth.

"Petrol prices in Aussie dollar terms are going up at a greater rate and we're expecting that to continue," he told ABC Radio. "From the consumers' point of view if petrol prices get above $1.40 a litre, even $1.50, that's going to cost the average punter an extra $15, $16 a week to fill up the car. What does it mean for retail sales? That's about 4 per cent, about $700 million will be drained from the economy per month, so that's obviously going to dampen growth."

The Australian Bureau of Agricultural and Resource Economics estimates Australia's oil consumption will leap by 66 per cent over the next 25 years, cutting oil self-sufficiency to just 50 per cent by 2029, compared with about 78 per cent now.

In a submission to a Senate Inquiry on future oil availability, the bureau warned that net oil importers such as Australia would be forced to rely on the Middle East and North Africa for supplies, regions pocked with geopolitical uncertainties. The ABARE report predicts the share of world oil produced in the two regions would rise from 35 per cent now to 44 per cent by 2030.

While high petrol prices will cost the Australian economy millions of dollars, they may help keep interest rates down by sapping consumer spending in the short term, economists say.

In the May budget, federal Treasury will warn that high oil prices are a risk to the economic outlook, with the potential to boost inflation and slow growth.

because ive been used to petrol prices in europe, i dont care about the petrol prices in australia till they hit 2.00 per litre. 1.30 to - 1.50 doesnt bother me much. However when i see the 2.00 per litre mark, i would start to get worried :D

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xoom Grand Master

xoom

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what im interested to know is although the petrol price per barrel is rising the aussie $ vs the US $ has also changed dramatically and how that has had zero affect on making it cheaper ..... in fact it seems to be raising the price ..... i remember last year the aussie dollar was in the low 80's to high 70's with a similar price for crude oil and the price at the servo is the same as it is now ..... seriously makes no sense ..... however im guessing there is probably some left field economic link like the price of land in tasmania which has caused for our prices not to drop ...... the whole system is flawed from my perspective and well ..... we'll all keep paying bcuz we need to get from a to b.

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Hiro Grand Master

Hiro

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what im interested to know is although the petrol price per barrel is rising the aussie $ vs the US $ has also changed dramatically and how that has had zero affect on making it cheaper ..... in fact it seems to be raising the price ..... i remember last year the aussie dollar was in the low 80's to high 70's with a similar price for crude oil and the price at the servo is the same as it is now ..... seriously makes no sense ..... however im guessing there is probably some left field economic link like the price of land in tasmania which has caused for our prices not to drop ...... the whole system is flawed from my perspective and well ..... we'll all keep paying bcuz we need to get from a to b.

It's not so much that the Aussie dollar is strong, it's the fact that the US dollar is going down the toilet, and has been for a while now.

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jps137 Veteran

jps137

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Well this thread is showing it's age, I paid $1.60 per litre today (admittedly it was for 98 premiuim) and before you all start saying I could have shopped around I was getting close to empty and I was in a hurry

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xoom Grand Master

xoom

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what im interested to know is although the petrol price per barrel is rising the aussie $ vs the US $ has also changed dramatically and how that has had zero affect on making it cheaper ..... in fact it seems to be raising the price ..... i remember last year the aussie dollar was in the low 80's to high 70's with a similar price for crude oil and the price at the servo is the same as it is now ..... seriously makes no sense ..... however im guessing there is probably some left field economic link like the price of land in tasmania which has caused for our prices not to drop ...... the whole system is flawed from my perspective and well ..... we'll all keep paying bcuz we need to get from a to b.

It's not so much that the Aussie dollar is strong, it's the fact that the US dollar is going down the toilet, and has been for a while now.

but thats my point ...... barrels of crude oil are measured against the USD which the Aussie dollar is now paying 90+c so surely that should equate to a reduction in the cost ..... i mean i just bought stuff from the US which i priced up this time last year and saved over $400 so how does this rule not apply to oil ?

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Leroy Grand Master

Leroy

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It's not so much that the Aussie dollar is strong, it's the fact that the US dollar is going down the toilet, and has been for a while now.

but thats my point ...... barrels of crude oil are measured against the USD which the Aussie dollar is now paying 90+c so surely that should equate to a reduction in the cost ..... i mean i just bought stuff from the US which i priced up this time last year and saved over $400 so how does this rule not apply to oil ?

Yes, but a weaker USD means that they get less oil for THEIR dollar... hence, why they price continues to get jacked up.

Not that I'm saying for a minute that this is the only factor (far from it), but it's the same as the man running the corner store. His suppliers charge him more, which means he gets less for his dollar - so he passes that gap onto you to maintain his profit margins... although I'm sure in this case, the price gets jacked up more than the original increase...

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mrs.sportivo Grand Master

mrs.sportivo

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word has it 10 years time petrol will hit $3 !!!

http://www.thewest.com.au/aapstory.aspx?StoryName=465318

crazy i know, looks like we all hafta change to LPG

just found this site LOLOL TELLS U THE PETROL PRICES OF THE PETROL STATIONS NEAR U ! how cool

http://motormouth.com.au

Edited by mrs.sportivo
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MT Grand Master

MT

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If Petrol ever reaches $3 a litre, I can guarentee that swapping to LPG will get you nowhere as as it will be just as expensive by then.

and to bill..... Singapore...

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Rolla_Boy Veteran

Rolla_Boy

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Ride your bike, Walk to the shops or wherever your going thats in distance. I fill up once every 2-3 Weeks because of the change that ive done , I have a extra week of fuel because i ride my bike to the gym now instead of driving like i did before. You would be suprised how much difference it makes

I also drive my car nearly everyday

Edited by Rolla_Boy
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Kenneth Grand Master

Kenneth

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looks like the hike is not over yet then.. way beyond over infact... sit tight guys! i think its time to turn to something even smaller then a rolla... :P

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