Amazulu

Price cycle does not affect diesel either

Mike at Taree

Apparently the price of diesel is more linked to international demand. So when diesel was 20c more than petrol it was because of the Asian Boom and the high demand from trucking, shipping and construction, especially in China. Now that's slackened off, diesel and petrol are more even.

swans

I do enjoy reading all these made up 'facts',shall we look at reality

Woollies sell $6 billion worth of fuel yearly.They buy it off those oil refiners that make a fortune.They operate on a very small profit margin on fuel.

The govt collects $14-15 billion in fuel excise (budget papers),seems there is no lack of competition at all.

Who would be silly enough to look for the facts.Who would be silly enough to do some simple maths and work out what 2% of $6 billion was.Now as I am getting old the head isn't as good as it once was, could you answer that.

Woolies sold the magic wand a few years back,at a very good profit.Now they have to wait for oil to come by ship,and go through the refining process.I did complain at the AGM that people would be disgusted how the price of oil dropped last night and petrol didn't immediately follow 3 seconds later,would they listen,bloody directors.

Don't get me started on speculators on futures markets,never see oil and still make a very good profit (or loss).

Who would be silly enough to read an annual report,audited and everything,with severe penalties for any misleading statements,see Enron and Arthur Anderson.

What would you expect ACCC to do,tell them they have to raise the price of fuel to avoid putting the competition out of business.

Geordie downunder

swans

Silly me,I looked at the wrong report,that was the 2011 report.The 2012 report gives a gross sales figure of $6.714 billion of petrol .This produces an EBIT of $127.1 million.

To simplify it (cancel the 6 zeros) every $ 671,000 of revenue produces $127 of gross profit.

You have to admire the human race,they never stop dribbling shite and telling each other how wise that shite is.

To quote the greek philosopher from 6BC 'The stupidity and the problems of the human race are not caused by ignorance,they are caused by the delusion of knowledge'.

Now there was a genius,summed up the whole history of the human race in one sentence.

See if you can work out why the ACCC will do nothing

geordie downunder

chris955

It certainly did in Brisbane, it would fluctuate 20c in a day.

chris955

So why dont the ACCCCCCCC do something about the 'normal' weekly price cycle that only appears to be 'normal' in Australia?

swans

There were only 4 cars in our street (85 council houses)A ford anglia,an Mg 4/44,a jowett javelin and my neighbour was in the army.He drove back from germany in an old Opel,it looked so exotic

We still followed the rag and bone man's horse and cart for the manure.


G/D/U.

swans

I don't know,would you rather they stopped them selling at the lower price and told them to keep the same price all week.

I prefer to buy at the low price in the cycle.

G/D/U

chris955

Why have the 'normal' cycle is my question. If it was stopped no doubt it would be set at the top end of course.

swans

There is nothing I can do about about the refusal of the human race to think, to see reality,or to stop making up their own' facts.'

Why not do some thinking for yourself.This cycle is normal in Canada,USA,Germany and thailand,where I filled the car up yesterday,and petrol is 1 baht cheaper today.Bang Na area of BKK.You find out if it is normal elsewhere in the world,or continue to make up your own facts,please yourself.

The elasticity of the supply demand equation would probably be a good place to start.Thinking and living in the real world would be even better.

I'll point out the basic maths again ,facts and reality are there for all to refuse to see.

Take a barrel of oil costing A$100,so 100/160 is 62.5 cents a litre.Add on excise tax and GST around 52 cents a litre,if it is based on cost price.Shall we round that to $1.10 per litre.

How much have the refiners booked at forward prices,how much have they booked at fixed price,so the oil company has a stable income,and the refiners have stable prices.What is the tanker day rate hire,was it fixed or spot.What are harbour fees and all the other fees.

How have they handled currency fluctuations ,what %age is fixed,spot or futures.How many other variables do you think there are.I'm baffled as to how they make a profit in the first place.

The total lack of ability to do the most basic maths,Caltex sell 20 billion litres of fuel per year,what do you think 20 billion X 2 cents is.Same again in all cases,would you notice if it cost $1 more or less to fill your tank.If caltex fill 10 million tanks a week would they notice $10 million a week disappearing from the bottom line.

Think FFS.

Geordie downunder.

chris955

sonlymewalter

it was prolly at that point you lost any credibility you never had mate

chris955

I couldnt even make it past the first blah blah blah.

BadgeIsBack

I want a compendium of GDU's greatest exposes.

A sort of greatest hits.

renth

I always enjoy Geordie Down Under/swans' posts including the "brusque" style.