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ACT Petrol price Rip-off

By 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.

What’s Your opinion?


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ACT Petrol price Rip-off
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… that should be ‘good’ for the economy, not ‘food’ for the economy…

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 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 4:13 pm 17 Jul 08

Completely, 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 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.

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.

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