The Reason Diesel Prices Are Still High,

[csv8]

"With unleaded petrol prices dropping to record lows, we know many diesel drivers are questioning why they haven’t seen the same falls.
Two factors are leading to the higher price of diesel.
Firstly, in some parts of Queensland, we’re seeing margins on diesel about twice as high as petrol.
Fuel companies have used recent falls in the oil price to bolster margins rather than passing those savings on to motorists.
Secondly, the wholesale price of diesel is currently substantially higher than petrol. Demand for petrol has collapsed in Australia and around the world due to COVID-19, however demand for diesel has stayed relatively high — it’s largely used by industry, with trucks still running and mines still producing.
Supplies of diesel are also relatively low, with a typical refinery in Australia producing about twice as much petrol as it does diesel.
This imbalance between supply and demand has pushed up the diesel wholesale price.
While there are many factors diesel drivers can’t control, what they can control is where they fill up. Make sure you’re only shopping at the cheapest site, using apps like RACQ Fair Fuel Finder to locate the best deal near you.
By choosing to shop at the servos offering the lowest price, you’ll not only save yourself money but also encourage the ones ripping us off to compete for your business, and hopefully we’ll see those diesel prices fall."
https://www.themorningbulletin.com.a...rices/4011381/

[LG17]

As usual, the information is only useful for city slickers...

[nstg8a]

Originally Posted by LG17

As usual, the information is only useful for city slickers...

Maybe you could compile some information more relevant to the country bumpkins then?

[hayseed]

Originally Posted by csv8

Secondly, the wholesale price of diesel is currently substantially higher than petrol.

^^^^^I'll call BS on this ^^^^^


https://www.vivaenergy.com.au/produc...ng/current-tgp


https://www.bp.com/content/dam/bp/co...gate-price.pdf

[Yellow_Festiva]

Lowest it got in Sydney was 87.9.

Averaged 95-99 for the past few days at the other discount chains.

Noticed that today that average is now 99-104 cpl.

[Franco Cozzo]

It's around the mid $1.20/L mark around Melbourne.

I paid $1.329/L for Shell 'V Power Diesel'

[roKWiz]

Originally Posted by Franco Cozzo

It's around the mid $1.20/L mark around Melbourne.

I paid $1.329/L for Shell 'V Power Diesel'

99 cents ULP and $1.20 for diesel yesterday in Wangaratta Vic.

[XR Martin]

So what is the excuse for why 98 is up to 25c more a litre?

I seem to remember at one time it was as little as 5c a litre more...

[csv8]

Diesel in Rockhampton is $114.9 Premium is $116.9.
E10 is 89.9c. 91 is 93.9c-95.9c.

[cheap]

Our Local Costco:

E10 @ 82.7
PULP @ 98.7
Diesel Premium @ 98.7

I always take a couple of jerry cans with me.

[Yellow_Festiva]

Filled up last night at the same cheapo servo. 91.7 or something like that.

Wish I had a bigger tank....

[Franco Cozzo]

BP Keilor Park 91 went from $0.899/L to $1.19/L overnight.

[Bossxr8]

Originally Posted by XR Martin

So what is the excuse for why 98 is up to 25c more a litre?

I seem to remember at one time it was as little as 5c a litre more...

It's pure profit taking. It only costs an extra 2-3 cents per litre to make premium. They just charge the much larger amount out of pure greed.

[Dr Smith]

Originally Posted by hayseed

^^^^^I'll call BS on this ^^^^^


https://www.vivaenergy.com.au/produc...ng/current-tgp


https://www.bp.com/content/dam/bp/co...gate-price.pdf

Yep..today 14/5/20 there should be a 4c/L difference at the pump between unleaded and diesel if the same profit margin is applied by the service station owners.

[jpd80]

Could you imagine the trucking industry facing wild swings in fuel pricing,
there would be no way for fleets to accurately budget monthly fuel costs

[Dr Smith]

Originally Posted by jpd80

Could you imagine the trucking industry facing wild swings in fuel pricing,
there would be no way for fleets to accurately budget monthly fuel costs

I'd assume the bigger fleets are on contract pricing.

If the government didn't benefit directly through GST and excise on fuel maybe the wholesale pricing model being linked to Singapore could be altered to an average between 3 world regions to remove the effect of one individual spot price. There will be benefits and obviously some negatives.

From memory the GFC didn't effect Asia to the same degree as it did in Europe and to a greater extent in the US so having our petrol and diesel wholesale prices directly linked to Singapore meant we didn't get the price drops experienced everywhere else at the time.

[jpd80]

Originally Posted by Dr Smith

I'd assume the bigger fleets are on contract pricing.

If the government didn't benefit directly through GST and excise on fuel maybe the wholesale pricing model being linked to Singapore could be altered to an average between 3 world regions to remove the effect of one individual spot price. There will be benefits and obviously some negatives.

From memory the GFC didn't effect Asia to the same degree as it did in Europe and to a greater extent in the US so having our petrol and diesel wholesale prices directly linked to Singapore meant we didn't get the price drops experienced everywhere else at the time.

Yeah but it's the fuel companies deciding what prices we'll pay, most times there up to 15-20cents/ litre difference between wholesale and retail price but the ACCC just refuses to act. All those fuel stations grouped up by the oil companies and sold off / managed by third parties..... we're getting further an further away from retail competition, the whole thing is a nice cosy arrangement by those supplying fuel to end users?

[hayseed]

Originally Posted by jpd80

Could you imagine the trucking industry facing wild swings in fuel pricing,
there would be no way for fleets to accurately budget monthly fuel costs

Any Transport Operator Worth His Salt has some type of Fuel Levy in Place That Is set at the beginning of Each Month.

If you Google Fuel levy you'll find Most Bigger Companies have it on their Website.

[LG17]

Originally Posted by nstg8a

Maybe you could compile some information more relevant to the country bumpkins then?

For starters they're telling motorists to shop around. That's just not plausible in the country. In the city you find petrol retailers everywhere but in the country you usually have to drive to the next town. We're talking a couple of kms in the city versus anything up to around 100kms in the country, unless you live in a large country town.
Not counting transport companies and their delivery vehicles, the proportion of diesel vehicles in rural areas far outweighs the number of petrol vehicles so rural drivers get hit with more in the pocket every day.
Governments don't care about rural folk as we get screwed far more often for everything than city folk.

[jpd80]

Originally Posted by hayseed

Any Transport Operator Worth His Salt has some type of Fuel Levy in Place That Is set at the beginning of Each Month.

If you Google Fuel levy you'll find Most Bigger Companies have it on their Website.

I'm not talking about road tankers and the cost of transporting fuel, I'm talking about the big fluctuations in price we see with petrol prices, if that happened with diesel, road transport (not fuel tankers) companies would struggle to budget their running costs and passing them onto freight customers. The inconsistency in pricing would mean a big variance in freight costs to customers, something most wouldn't accept.

[hayseed]

Originally Posted by jpd80

I'm not talking about road tankers and the cost of transporting fuel,

Neither am I......

I'm talking about the big fluctuations in price we see with petrol prices, if that happened with diesel, road transport (not fuel tankers) companies would struggle to budget their running costs and passing them onto freight customers. The inconsistency in pricing would mean a big variance in freight costs to customers, something most wouldn't accept.

Customers Do accept it.

Every Transport Company from Linfox all the way down to small Business's such as mine have some form of Fuel Levy/surcharge in Place..

Here's 2 I found for you..

http://lindsayaustralia.com.au/fuel-levy

https://www.ptg.com.au/fuellevy


Any Transport related entity that doesn't have some form of Fuel Levy Formula in Place.Shouldn't be in Business & Deserves to go Broke as far as I'm Concerned..

[383hq]

Yep pretty much standard practice on road transport for last 10-15 years from memory.
Aviation do it as well.

No point worrying about a few cents in the dollar to transport a litre of fuel when GovCo takes 50cents or more on fuel levy, excise and GST

I do wonder how they'll get their pound of flesh with electric cars (user pays/km?)

Diesel $1.07 in rural SA atm, premium unleaded 1.17