Comments on: U.S. Q1 fuel demand down 1.4 percent

By: Dlr1

Dlr1 — Wed, 23 Apr 2008 06:27:01 +0000

Andrew M,
Read the text, March 07 wholesale LPG price on global market 45 cents per litre. 4 years ago it was 20 cents per litre. When the world price goes up so does ours. Its called parity pricing. It doesn’t matter where it comes from or where its going, we live in a global market. If the Saudi price slumped to 15c per litre, local wholesale prices would follow despite it being locally manufactured. And we currently produce only about 60% of our oil needs, so as the global price rises, so does the local and so on.

By: jbot

jbot — Sun, 20 Apr 2008 06:45:57 +0000

Andrew M, you have mentioned “also consider that we are simply burning the stuff off due to not enough demand” a few times now.. Mind showing me where you get that info? Cause I think it’s BS.

By: Carl

Carl — Sun, 20 Apr 2008 06:34:27 +0000

Andrew^^^^^^^^Spot on^^^^^^^^^^^^^^^

By: Andrew M

Andrew M — Sun, 20 Apr 2008 06:19:00 +0000

Dlr1,
mate you havent explained the reason for LPG price increases one bit.

yes you are right in that one method of producing LPG does involve the use of oil remnants, but you will find australias main primary product for making LPG is natural gas, not oil.
australia has a massive supply of natural gas.

you are also right in that australia exports billions of litres of the stuff (LPG), but to add further to the story they sell it for a pittifull rate of something like 4 cents per litre.
also consider that we are simply burning the stuff off due to not enough demand.

if the government really cared they would stop trying to globalise this country, and then we wouldnt have to pay Saudi LPG prices, nor the world oil prices because we also produce something like 90% of our own oil right here in OZ

it is our growing involvement with outside countries (globalisation) that is ruining our ways of living

By: Dlr1

Dlr1 — Sat, 19 Apr 2008 02:32:08 +0000

For those wondering why has LPG gone up in price need look no further than the Saudi bechmark that we adopt for our lpg prices. The wholesale price has risen from below 20c/litre (AUD) to above 45c/litre last month.

In 2007 autralia exported 10 billion cubic meters of gas. Around 1/4 of our production. So as the world price goes up so does the local price.

And because one method of production involves turning crude oil into LPG, prices for LPG will have a strong relationship to oil prices. Even if oil & LPG world prices donot move in the next 4 years expect to pay another 12.5c/litre during that period. The previous federal government legislated an excise to be introduced from mid 2008 starting at 2.5c and increasing to 12.5c in 2012.

By: Minnow

Minnow — Fri, 18 Apr 2008 12:24:07 +0000

Do farmers get discounted diesel??? I know a bloke who has a farm and buys his diesel in bulk and can get it at around $1.10 a L, or is it just agriculture related industries?

By: Minnow

Minnow — Fri, 18 Apr 2008 12:20:53 +0000

I wonder if the price of fuel will steady after the beijing olympics or even drop back down to around $1.20. All this chinese development going on for just preparation for the olympics is causing massive demand for all resources, things may slow after the olympics this year… who knows time will tell.

ha! the heading US Fuel demand decreasing.. looks like theyre not driving their Hummer’s to their letterboxes anymore and are now walking while eating KFC. Or as casey said! the sub-prime crisis, ahh their silly ways of selling home loans to literally poor, unsuspecting people.

By: Spitfire

Spitfire — Fri, 18 Apr 2008 08:13:35 +0000

Well said Reckless1.

By: Carl

Carl — Fri, 18 Apr 2008 04:35:52 +0000

Andrew….Exactly if they want more LPG sales they have to offer LPG on the higher specs from factory without forcing us to do a post market conversions!!!!!!

By: Andrew M

Andrew M — Thu, 17 Apr 2008 23:55:56 +0000

Carl,
i echo your thoughts mate.

the no upgrade on the LPG system is prob what will push me back to petrol.
mine is currently a manual. if they went back to offering it in a manual agian or even the ZF6 i might consider it a little more.
if i passed up the upgraded 6cyl petrol which now comes with the 6sp man as standard i would feel like i was missing out
if i go back though, the prices are gonna hurt me