Diesel Prices today wtf??? 30c dearer than regular ULP

[jdd]

I just received the following response via email.

Thank you for your email of 21 May 2008 to the Australian Competition & Consumer Commission (the ACCC) regarding the price of diesel fuel. I understand from your complaint that you are now paying $182.5 per litre for diesel and that there has been a 33 cent rise in Melbourne in the last three weeks

The role of the ACCC is to ensure compliance with the Trade Practices Act 1974 (TPA), which is designed to encourage fair trading and discourage anti-competitive conduct through a specific set of competition and consumer protection rules.

Prior to 1 August 1998 the ACCC endorsed the maximum wholesale prices for petrol and diesel of the oil majors and established freight differentials. On that day petrol and diesel prices were deregulated and wholesalers are now free to set their own prices based on market conditions.

The benchmark for diesel is the spot price of Singapore Gasoil (with 50 parts per million sulphur content). There is generally a time lag of around one to two weeks between changes in international prices and changes in retail prices, due to the averaging formula used by refiners in Australia when setting their wholesale prices. This lag may be longer in country areas because fuel stocks are replenished less frequently by wholesalers and retailers in the country due to the lower volume of sales.

This benchmark has recently hit all time high levels, as a result of increased international demand. A significant factor contributing to diesel prices being higher than petrol prices in Australia in recent months is that the international benchmark price for diesel has increased relative to the international benchmark price for petrol. Over the period January 2008 to late April 2008 the price of Singapore Gasoil has been around US$15 per barrel (or Australian 11 cents per litre) higher than the price of Singapore Mogas 95 Unleaded.

Petrol prices in the major metropolitan areas and locations close to them tend to move in cycles. In the case of diesel there are generally no price cycles. This may be because a large proportion of diesel sales are on a contractual basis and therefore not at the pump price.

Further information on this topic can be obtained from the ACCC booklet, Understanding petrol pricing in Australia, which is available through the following link: http://www.accc.gov.au/content/index.../itemId/759646.

In response to the increased rise in fuel and diesel prices the Assistant Treasurer and Minister for Competition and Consumer Affairs, the Hon Chris Bowen MP, announced Mr Pat Walker as the Government’s nominee for the new Petrol Commissioner. He also announced that he was asking the ACCC and the new commissioner to commence a renewed focus on LPG and diesel prices. As part of this monitoring, the ACCC closely monitors petrol and diesel prices in all capital cities and around 110 country towns. In addition, the ACCC follows developments in the petroleum industry and will enforce the provisions of the Act if there is evidence that it has been breached.

Additionally, On 15 April 2008 the Government announced the establishment of a National FuelWatch Scheme to promote competition and transparency in the petrol, diesel and LPG markets. The scheme will commence on 15 December and the ACCC is working on the implementation of the scheme.

Thank you for contacting the ACCC and I hope this information is of assistance.

Yours sincerely,

ACCC Infocentre

1300 302 502

[Logzy]

I didnt get a reply.
Must be my bad attitude.

I didnt just tell them that it was far ked, I said it was far ken far ked.

[Greg Roles]

Dear Mr Logz,

Thankyou for your recent e-mail outlining your concerns about the spiraling cost of diesel fuel in Australia. Whilst we were a little taken back by your rather descriptive references to what the oil companies could go do to a goat, we did manage to read between the expletives and agree that the cost of diesel does seem to be rather overpriced compared to the average price of ULP. The AAAAAC is planning to write the oil companies a letter, and that letter will point out how very very angry we are with them in full team America style. I am sure this will sort things out once and for all, and please feel free to never contact us again you rude mother **** ing piece of *** **** sucker,

sincerely,

AAAAAC consumer pacification program.

[Greg Roles]

I just received the following response via email.

So if the price difference is 11c per litre crude, at the same profit margin, Diesel should only be 11c ahead, or less with the lower refining cost

[jdd]

So if the price difference is 11c per litre crude, at the same profit margin, Diesel should only be 11c ahead, or less with the lower refining cost

In theory, yes up until late April as they state, this correlates somewhat with what we've seen at the pump.
I get the impression that email response is a standard pre-written template they modify slightly to suite the individual cases in an attempt to make them look like they’re concerned and caring.
I notice they failed to address, or even comment on most of my questions.

[gareth_oau]

some food for thought for you.

If you use a BP issued credit card (at BP service stations), they offer a 5% discount. at $1.70/L thats still $0.085/L in your pocket.

The small print on the BP credit card says theres no interest-free period on the card - so if you use it as a debit card instead, ie buy fuel, and then immediately transfer funds to cover it, then you get the full 5% discount.

worth considering if yr buying a lot of expensive fuel

[neil]

some food for thought for you.

If you use a BP issued credit card (at BP service stations), they offer a 5% discount. at $1.70/L thats still $0.085/L in your pocket.

The small print on the BP credit card says theres no interest-free period on the card - so if you use it as a debit card instead, ie buy fuel, and then immediately transfer funds to cover it, then you get the full 5% discount.

worth considering if yr buying a lot of expensive fuel

Re: BP card
For new customers its 10% for 3 months.
One of the catches is it costs $79.00 per year.

Did the email thing with ACCC and got a phone call back with excuses.

[orsegtsport]

As the servo industry is deregulated, servo's can charge what they want. All the AAAC is going to do is have a diesel specific watchdog and monitoring site up by years end, listing specific businesses. Seems they are powerless to put pressure on anyone inflating fuel prices.

The West Australian newspaper claimed earlier this week that the disparity between diesel and ULP prices was largely due to price gouging, and that on average, the retail margin (the money the actual servo makes) on diesel is some 3 - 4 times greater than that on ULP.

Ah, so they are going give us another tax payer funded watchdog eh? Awesome. Seems to me that their sole reason for existence is nothing more than a government PR stunt. I mean, have these 'watch dogs' achieved anything since their implementation (and that's not a rhetorical question, I'm genuinely interested to know of examples)?

[mr_walker]

In the news today:

Diesel takes the hit for fuel rises

[Logzy]

In the news today:

Diesel takes the hit for fuel rises

Cant say i agree with some of the wankers comments in the article.
6 months ago there was only 5c/litre difference between ULP and Diesel so how can Mr Motormouth say they have both increased by 61%. Sure maybe over the last 4 years it averages that they have, now but the main increase on Diesel has been in the last 6 months.

F@#$wits.