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Local petrol prices not reflecting global prices

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kransky

kransky

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July 2008:
West Texas Intermediate peaked at about US ~$144 per barrel
Local petrol prices peaked around ~$1.75 for 98 RON fuel if i remember correctly.
AUD-US exchange rate was around ~97c

NOW:
West Texas Intermediate has fallen to US ~$42 per barrel
current exchange rate is 63c
local petrol prices are around ~$1.40 for 98 RON fuel

Commonwealth excise is 38c/litre
gst=10%
117 Barrels per litre

THEN:
144/0.97 = AUD $148/Barrel
148/117 = AUD $1.26/litre
1.26*1.1 + 0.38 ~ 1.75.. Makes sense!

NOW:
42/0.63 = AUD $67/Barrel
67/117 = AUD $0.58/litre
0.58*1.1 + 0.38 = 1.02

there is at least a 35c disparity!

This does not make sense to me. Does it make any sense to anyone else? Who should we complain to?
 
I'm sure we use the Malaysia's Tapis benchmark.

That was at $46.63 on the 27/2.

It does even it up a little more.
 
Here are a couple of links ( Malaysia’s Tapis crude oil, Petrol Malaysia) that explain what Malaysian Tapis is for people who (like me 5 minutes ago) don’t know. And also to crude oil prices – Tapis is more expensive than West Texas Intermediate (quality differences seem to account for this), and maybe the spread between the two changes over time, which would make a comparison over time of WTI to Aust. petrol pricing not necessarily valid?
 
I heard refinery costs are the reason;

but i'm sure there is still a 10c+ disparity after that.
 
So the answer is: as producers we sell our petrol to the world at a $15 discount to Brent, but as consumers we pay the rate for the finest petrol going round these days (even if it's not).

Correct me if I'm wrong? :cautious:
 
cant help but feel like i am being raped up the ar$e everytime i fill up at my local BP

:mad:
 
Timmy said:
Here are a couple of links ( Malaysia’s Tapis crude oil, Petrol Malaysia) that explain what Malaysian Tapis is for people who (like me 5 minutes ago) don’t know. And also to crude oil prices – Tapis is more expensive than West Texas Intermediate (quality differences seem to account for this), and maybe the spread between the two changes over time, which would make a comparison over time of WTI to Aust. petrol pricing not necessarily valid?
Click to expand...

The price for australian refined petrol is set by the singapore bench mark plus the cost of transport to Japan from Singapore why Japan I dont know . The saingapore benchmark is based on Tapis
 
kransky said:
Does it make any sense to anyone else? Who should we complain to?
Click to expand...

No it doesn't make sense at all but we can't complaint to anyone because none cares.
The government is absent on the issue and I guess they are now more interested in the taxes the higher petrol prices bring in than our well being. :eek:
 
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