ACT Petrol price Rip-off

Pesty 16 July 2008 27

I know it’s the same old winge, but how comes the petrol at Exeter services and beyond is 11 Cents per Litre cheaper than here today? (Gungahlin prices).

It seems to me they can charge what the hell they like! & who shall bid them nay! 

Whinge over.


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27 Responses to ACT Petrol price Rip-off
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VYBerlinaV8_the_one_they_all_copy VYBerlinaV8_the_one_they_all_copy 11:55 am 18 Jul 08

… that should be ‘good’ for the economy, not ‘food’ for the economy…

VYBerlinaV8_the_one_they_all_copy VYBerlinaV8_the_one_they_all_copy 11:54 am 18 Jul 08

Jakez – my belief that reduced spending on luxury good is food for the economy is based more around human psychology than immediate economic effect. The more people are surrounded by luxury goods and services, the more they want. And most people find excuses to purchase such services, even on credit. And increased use of personal credit leads to inflationary pressures. Note how most people under the age of 25 seem to live these days – I am only in my early thirties but notice this age group spending $$ (often borrowed) on things I wouldn’t have considered at that age, because I didn’t think it was a wise use of what little I had.

That being said, inflation is not THAT high at the moment. It has certainly been higher in Australia before. But given the levels of debt, even small interest rate rises now have an effect on people and businesses. Still, we have just gone through 10 years of extreme prosperity, I guess we have to pay the piper sometime…

jakez jakez 10:35 am 18 Jul 08

tylersmayhem said :

“Besides, high petrol prices mean people are spending less on luxury type goods and services, which I think is good for the wider economy”.

“On what basis have you come to this belief”?

Jakez: to try to answer your question – inflation! The more money people spend buying “luxury” items, the higher inflation climbs. As we’re all quickly learning, high inflation = high interest rates. High inflation is not good for any economy, therefore interest rates are raised to discourage over expenditure by consumers and reduce the inflation.

I’m not a finance pro by any means, but this is the high level explanation that has been given to me on more than one occasion.

If I tried to answer the question it would not be the basis upon which somebody else came to that belief. See sometimes a question is actually a question.

Here is a question for you. How does spending money on luxury items increase inflation?

How does spending less money on luxury items and more money on petrol not have the same inflationary impact?

tylersmayhem tylersmayhem 4:13 pm 17 Jul 08

Completely, Pesty!

Pesty Pesty 3:47 pm 17 Jul 08

My original post was about the big difference in cost between here and from Exeter down towards Sydney! What we need.and must ultimately get is a non oil based fuel system for our “cars”. oil WILL run out, we need to conserve stocks for the thousands of other uses it has besides pumping into out fuel tanks in whatever form. it’s common sense.

tylersmayhem tylersmayhem 3:47 pm 17 Jul 08

“Besides, high petrol prices mean people are spending less on luxury type goods and services, which I think is good for the wider economy”.

“On what basis have you come to this belief”?

Jakez: to try to answer your question – inflation! The more money people spend buying “luxury” items, the higher inflation climbs. As we’re all quickly learning, high inflation = high interest rates. High inflation is not good for any economy, therefore interest rates are raised to discourage over expenditure by consumers and reduce the inflation.

I’m not a finance pro by any means, but this is the high level explanation that has been given to me on more than one occasion.

VYBerlinaV8_the_one_they_all_copy VYBerlinaV8_the_one_they_all_copy 2:10 pm 17 Jul 08

FWIW, I’d buy a diesel long before I considered a hybrid. Vehicles like the Hyundai i30 are not only amazingly economical for their size, but actually drive surprisingly well.

In Canberra, I’d suggest the benefits of hybrid technology would be minimal, given that we don’t spend that much time crawling along at less than 20km/h in normal driving.

peterh peterh 1:58 pm 17 Jul 08

p1 said :

It does piss me off though, that people are happy to pay $20 to go to a movie, and then cry poor when they have to pay an extra $3 for petrol after the price goes up 20c a litre.

100% agree. That and I wonder when people harp on about saving 10cents a litre, when it has increased five times that in the last year or so. If you get a couple of 44 gallon drums in your shed, and buy fuel new, you will be saving well over 10cents/L by the time you use it….

but they frown on you bringing 44 gallon drums to the petrol station…..

Kramer Kramer 1:30 pm 17 Jul 08

Totally agree p1, et al about the fuel price whingers. We are paying market price in a market economy. The government is hurting themselves and us if they decide to cut the excise – as they will have to get the revenue from other means, and lower prices will reduce the disincentive to drive everywhere. Instead of reducing the price of fuel, they should be increasing it with the carbon tax, and keeping the excise.

p1 p1 1:19 pm 17 Jul 08

It does piss me off though, that people are happy to pay $20 to go to a movie, and then cry poor when they have to pay an extra $3 for petrol after the price goes up 20c a litre.

100% agree. That and I wonder when people harp on about saving 10cents a litre, when it has increased five times that in the last year or so. If you get a couple of 44 gallon drums in your shed, and buy fuel new, you will be saving well over 10cents/L by the time you use it….

wishuwell wishuwell 1:13 pm 17 Jul 08

NRMA comparisions were a bit misleading in that they didn’t factor in that all but one of the vehicles needed premium fuel to get their efficiancy savings compared to diesel. Cutting fuel excise will only reduce money govn. has to spend on schools, hospitals etc. The bowser price will stay the same (just more profit for oil companies). Qld doesn’t include the GST component in fuel sales (they forgo that part of the GST return to the states from the Feds). And the difference in the cost of diesel over petrol can be explained by market research carried out by the fuel companies (vehicle type sales in particular areas/average incomes) therefore if there is a spike in diesel vehicle sales in a higher income area the difference in price increases. In areas of low diesel vehicle ownership the difference is much lower, transportation costs however remain the same. ps talking cars here.

mdme workalot mdme workalot 1:01 pm 17 Jul 08

I agree that we should be encouraging people to use alternative forms of transport, but what about those of us who have no other choice but to drive? It’s too expensive to live in an area where public transport or walking is an option, so I have to drive. Even if petrol goes up above $2 a litre, it will still be cheaper for me to live out of town.

It does piss me off though, that people are happy to pay $20 to go to a movie, and then cry poor when they have to pay an extra $3 for petrol after the price goes up 20c a litre.

Thumper Thumper 12:52 pm 17 Jul 08

I drove a deisel Golf around England and Wales last year and was astounded at the fuel economy it gave me.

Sorry, no figures, but that baby was unbelievably cheap to run, and for good measure it had oodles of grunt.

jakez jakez 12:44 pm 17 Jul 08

VYBerlinaV8_the_one_they_all_copy said :

.

Besides, high petrol prices mean people are spending less on luxury type goods and services, which I think is good for the wider economy.

On what basis have you come to this belief?

p1 p1 12:40 pm 17 Jul 08

Yup, and if the carbon trading scheme were to include vehicle fuel, then peoples requirement of food, compared to their (often not required) preference for motor transport, means that diesel likely will come down in price relative to ULP.

peterh peterh 12:38 pm 17 Jul 08

Growling Ferret said :

Why would you want a Hybrid when turbo diesel technology means you can use less fuel that way instead?

You want a fuel efficient vehicle – Hyundai i30 TD, VW Golf TDi both get under 5l per 100kmh on the highway.

The work Prius barely gets 9l 100/kmh round town – where my 2007 Falcon XR6 with 6 speed auto averages 10.0 around town and less on the highway…

check out the new open road report from NRMA – diesel lost to petrol efficiencies in the study that they did. read it last night.

Growling Ferret Growling Ferret 12:35 pm 17 Jul 08

Why would you want a Hybrid when turbo diesel technology means you can use less fuel that way instead?

You want a fuel efficient vehicle – Hyundai i30 TD, VW Golf TDi both get under 5l per 100kmh on the highway.

The work Prius barely gets 9l 100/kmh round town – where my 2007 Falcon XR6 with 6 speed auto averages 10.0 around town and less on the highway…

p1 p1 12:30 pm 17 Jul 08

I think that anything the Gov’t (at whatever level) can do to encourage more fuel efficient cars and/or new technology is great, and should be continued. That said, while I am not against the cutting of fuel excise, I really don’t think that expensive fuel is so bad, because it should reduce usage, which is good for everyone.

I think that any carbon trading scheme should fully include vehicle fuel, because we will soon find out what people are more willing to spend money, carbon emissions to drive their cars, or carbon emissions to power their plasma screen.

VYBerlinaV8_the_one_they_all_copy VYBerlinaV8_the_one_they_all_copy 12:28 pm 17 Jul 08

Petrol prices aren’t that bad compared to some other places in the world. Compared to the costs of depreciation for new vehicles, as well as maintenance, tyres, rego and insurance, I don’t think petrol is that big a deal.

It’s all about the psychology. Prices go up in fits and spurts (housing does this too, you know), and people moan about ‘how much it has risen in x time period’, without giving a thought to the fact that they have already enjoyed times when it is cheap.

Besides, high petrol prices mean people are spending less on luxury type goods and services, which I think is good for the wider economy.

peterh peterh 12:20 pm 17 Jul 08

if we can get prices reduced by the govt, perhaps by abolishing the fuel excise, or the local government rebating us somehow to cover the cost, we would go down by at least 10c a litre. works in qld. fuel is still 10c cheaper than in sydney (which is still cheaper than us).

I personally think that the Government (local and or federal) should give us a rebate if we buy a hybrid engine car – perhaps cut the cost of the cars so that more can afford it, or work out a way to upgrade the existing cars to be hybrid enabled.

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