Fuel prices continue to rise
April 24, 2008 by Alborz Fallah
Petrol giant Caltex has today warned motorists to expect rising petrol costs for ‘a long time’ to come, a result of record oil prices.
The Singapore Tapas price, which is used by Australian petrol distributors to set wholesale prices, hit a record high of $124 a barrel yesterday.
The RACV was quick to note that given the increasing cost, petrol prices could climb by another 5c as early as next month, resulting in almost $1.60 a litre at the pump.
“There is long-term upward pressure on petrol prices and Australians, like motorists around the world, can expect to pay more. Petrol prices are rising, and are expected to continue to rise, but not because of collusion or price gouging, as our critics suggest,” Caltex chairman Elizabeth Bryan told shareholders today at the company’s annual general meeting in Sydney.
With some analysts already estimating the price of fuel to reach the $2 mark in 12 months time, just how much more will Australians take before downgrading to small capacity or diesel engines?
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and further to why ford may not have used a vapour system yet in the dedicated model could be due to copyright issues.
i know they were planning to introduce it with BF but they had copyright hurdles. i dont know if those hurdles still exist or whether they just gave up on it.
also incorrect public perception about the product may have seen them evaluate it as not being worthwhile
before i buy my next falcon, im gonna see if someone out there will take a dedicated falcon and put a decent system in it, because ford wont.
im really gonna look into that. I’d rather my donk be tuned properly for LPG with the ideal internals like ford provide, but with the better brain that actually injects the LPG into the motor
Nah Kake its not taxation, its profiteering partly due to the fact that there is more energy in a litre of diesel than a litre of petrol i.e. 39KJ V 36KJ respectively.
sorry ‘Jake’
Andrew M…..Your wasting your time trying to convince dummies of the benefits of LPG because LPG is the SMART mans fuel of choice!!!!!
NZ prices are now $1.98/litre for BP’s 98 RON with 91 sitting at $1.88.
We can whinge and moan about the way to fix it. It aint going to go back to a $1/litre, so you just adapt and move on.
I would say that on the lpg side, that it too is a limited resource and alternative fuels will come from a man made product.
Bring it on!
Andrew M,
Also don’t forget the Krudd government it set to kill off the subsidy for LPG conversions. Smart government move forcing people to stay with petrol or diesel.
Makes a lot of sense…..not!! Thats progress.
Source : Latest Wheels mag (May08) page 19.
Macca that sounds unbelievable and I agree we soon won’t see it under $1.50 ever again. Once economies start to slide then governments might act on man made alternatives but unfortunately they really don’t give a blot about you or I so prepare for fuel to be skywards of $2.
Andrew M,
It sounds like you mightn’t know about this but from next yeat the government is phasing in an excise on LPG so the price differential will start to shrink from 2009 onwards.
So shortly LPG won’t be halving your fuel bill it might only improve by 10%.
Glen,
mate ive had an LPG vehicle for 5yrs now, so rarely in that time has an LPG article slipped passed me.
i first learnt about the plan to introduce excise on LPG 4yrs ago.
even if you take your 12.5cents and add it to 68cents it equals 80.5 cents per litre for LPG. and also keep in mind that it is only 12.5cents excise once the full phase in has happened which is in another half of a decade away.
i still dont get your stubborn attitude towards LPG. do you still get the fact that even with full excise it will still be only 80c per L???.
so even at 80cents per litre it would cost you $48 a week to run your LPG falcon Versus the $62 per week to run your petrol falcon. its a hell of a lot more than 10%. its closer to 25%…….either way its still a saving.
and thats with the high LPG consumption figures using the old tech system figures, not the proven better figures of a vapour system. a better system ie vapour system will return equal or better consumption than petrol. and then whats wrong with 80cents?
so you whinge about $2 per litre petrol, but dont see a 25%-40% saving as anything?
did you miss the bit where i said a decent vapour dedicated system can better consumption figures of a petrol???
Westy,
so what if Rudd kills the subsidy?
it means you wont pay it off in 6months but rather 12 months.
the smart ones will get in before that deadline.
its like saying no one should buy a house because the first home owners grant will be axed soon.
Andrew M, the problem is with lpg that its still on 157kws versus possible 200kw on 98 with the new FG Falcon. Give me the petrol one, i say. No use having a Falcon if it going to go slower than Grannies Corolla!
macca,
are you even reading what im saying?
didnt think so.
here it is in simple form……….
a vehicle with a decent vapour system (not the old school carby style setup ford uses) will achieve better power and fuel consumption figures than the petrol equivalent
decent vapour systems have been proven to give an SS commodore for eg actually more power, and thats still on a duel fuel setup not dedicated
157kw not powerful
When the AU had about 157kw no-one complained about the power and when does anyone use the full 157kw anyway?
Give me 157kw and $20 extra in my pocket per week.
By the way 98ron $1.69 in bathurst, the home of the greatest V8 race
Andrew M,
My point is if it is such a good thing why doesn’t the government continue to back it. Same could be said for solar panels. That was such a good idea yet is being scrapped in QLD. So were water tanks until the government in QLD again decided to scrap the subsidy and then also command people so that they CANNOT drink the rainwater. It all comes down to commonsense which governments seem to lack.
I agree that LPG is probably a good alternative currently but without the government’s support an initiative for all and sundry to get it then what ? It’s what happens after the subsidy is taken off that should be thought about because I can tell you people won’t pay $4K on a conversion as that is a large expense out of a battlers wage. I don’t see any major manufacturers apart from Ford making LPG a standard vehicle option. If it was so good there would be more manufacturers using it surely ??
I can verify Andrew M’s consumption figures as I have a Egas
AUTO AU ute with nearly 250,000klms on the odometer and it uses approx 16 litres city stop start and gets down to about
11 to 12l/100klms on the open road sitting on 110 to 120 klm/hr. Ba/bf would be more efficient as well as being a manual.
XR2 capri,
you are right on the power figures.
when they brought the dedicated model with the AU series, it actually lost bugger all off the power figure, BUT actually gained in the torque department. LPG is renowned for increasing the engines torque.
the only reason it seems like the FG loses so much power is because Fords LPG system hasnt had any advancements thrown at it like its petrol version has since AU.
it looks like a big loss but infact the petrol version has had dollars thrown at it yet the LPG version hasnt (apart from a little refineing they did for the BF series)
Westy,
why are people paying premiums that can be larger than an LPG premium for a diesel vehicle, when it has now been declared that you wont save a single cent when opting for diesel?
fords system only demands a $1400 premium by the way.
so your only reasoning as to why LPG isnt a reasonable alternative is because other manufacturers dont offer the stand alone option? gee thats a real open minded way to view things.
the other manufacturers do offer LPG but it is a duel fuel aftermarket fitment that they will warrent when it is done by their installer.
government grants are put in place to curb peoples ways of thinking, living and spending.
no grant will ever last forever.
do you think noone will ever buy a house once the homeowners grant is gone?
a grant is put in place to kick start the momentum to a particular way of living. they never last forever
if LPG isnt that good, then how come everyone that has actually tried it, unlike yourself and other doubters say it is really worth it?
every one that pops their head up in an LPG conversation like real cars just has, reckons it is great.
its like saying spinach is yuck with out even trying it to be able to offer a real opinion
Andrew M,
Obviously you disapprove of my having a different view to you. I have to look at the bigger picture and not just spruik a one minded line. Don’t get shirty because I have a difference of opinion. My problem with Governments offering grants for anything is the fact that it doesn’t last. So why promote a grant in the first place if you are going to rip it away. The reason there is a homeowners grant is due to the huge costs of owning a home compared to affordability years ago. That goes for everything. The rainwater water tanks was a perfect example. The WORLD is complaining about water shortages. So governments promote ‘hey everyone get a water tank and help save the world’. Then after it is a big hit and does prompt people to get water tanks they stop paying grants. Then they say and by the way don’t drink that water! What a crock. This in MY opinion is the same as dropping the LPG grants. If it was to help ‘the people’ it should be in place period. Affordability is the key here and we are not all earning 100K+ a year combined incomes so in the real world it is just hard enough paying for food and that is set to increase 50% in the next year for basic fruit and veg.
Everyone here gets YOUR opinion about LPG but what I am saying is not everyone is rich and simply cannot justify spending the money you are talking about for a conversion or dual fuel option. That’s not being simple minded but just a reality of cost of living these days.
My opinion is (and yes I have used LPG in the past so thanks for commenting on something which I have never said as you would know what cars I have owned) LPG is a good fuel choice. My initial response to you, and it still stands, is that lap it up while it lasts with the disparity in pricing. As demand for LPG increases you can expect the pricing to jump just a petrol is now.
im sorry if im seeming a little full on towards your responses, but once again you still dont get my visability point.
even if LPG doubles in price, petrol will too. LPG will always be cheaper than petrol to the tune it is now. hypothetically if LPG hits $2 bucks a litre, petrol will be at like $4 bucks.
think of a LPG conversion as an investment. it is paid off in a year and then it starts to make/save you money.
my main argument on LPG is that it can actually perform better in economy and power if a manufacturer cared enough to put the ideal setup together. ford is half way there, but theirs just lacks the modern brain, and the others run duel fuel which lacks the ideal set up.
The government isnt stupid. they know how to give it to us right up the clacker whilst we think they are feeding us a spoon full of sugar
even the government wont dish out grants if they wont get a return on their investment. think about it.
a government grant to push people to LPG, and before the grant came the legislation mapping out the excise proposed for LPG.
homeowners grant,
generates development that rakes in stamp duty and other taxes for the government,
rain water tanks,
well very soon we will be paying a rain water tax. you dont believe me, just wait and see. i read about it a while ago, and wish i kept the article. they say because we are all catching the rain, it means less in the catchment and hence losing the governmenr revenue from water. also the tax will cover the cost of regular inspections to ensure tanks are keep in order and not breeding mosquitos.
and did you know that even if you have a water tank, you are more than likely still governed by water restrictions in that you cant hose your garden with your tank water
no need to lecture me about not being able to afford something. i didnt exactlly grow up covered in money.
i grew up as one of 4 children in a family where dad raked in a whopping $500 bucks a week to support us. there was also no government allowances
my parents have never bought a new vehicle and prob never will.
just to clarify MY opinion on LPG,
more manufacturers should spend a little more time on LPG dedicated vehicles because i see it as potentially the better fuel choice. the LPG supplies are a lot richer.
also if everyone was on LPG and LPG hit $1, what will the excuse be? they cant blame oil prices, and perhaps the government wouldnt be so powerless to do something about it, because they are powerless aginst petrol prices
and further to the economics to an LPG conversion,
only the well off can afford to buy a new vehicle. if you can afford a newbie, then surely you can afford the conversion.
those who cant afford a conversion, will be buying 2nd hand vehicle, so why not look for one that is already converted eliminating the need to shell out $4k?
PS. LPG conversion strat from $2K depending on how advanced it is. $4K is what you pay for the absolute U Beaut systems
Fuel prices will continue to rise so get used to it.
Demand is increasing globally. Our fuel comes from Singapore which supplies greater Asia as well. So China will be driving demand. Many experts believe the world is about to hit “peak oil” which means supply will dwindle as the oil reserves, which are naturally under pressure will reach equilibrium. From that point on water needs to be pumped into the oil field in order to extract further oil. As a result output will drop. Demand will increase and prices will sky rocket. Even IF peak oil is not reached for another 10 or 20 years (no one REALLY knows how much is left) it is inevitable.
Consider very carefully which car you wish to buy or you might be left with a really expensive ornament.
Well Milar gets closest to the right answer here but still doesn’t go as far as admitting we’re very likely already into the effects of “peak oil” right now, and Cameron is even more unrealistically optimistic with expectations that it may yet be decades away. Even the most peak-oil denying Daniel Yergin, chairman of Cambridge Energy Research Associates, who “normally is known for optimistic forecasts of lowering oil prices now says the price could rise to $150 a barrel this year” (it’s now already over $120, up from $100 only a few months ago). Peak oil is not just a theory, and by the way it doesn’t mean we’re out of oil, just out of the easy-to-get cheap oil and that demand is starting to exceed availability. The effects of ever increasing oil prices form here on are far greater than just the price of filling your tank. The food at your super market is becoming more expensive not only because it’s transported huge distances by oil, but grown thanks to oil based fertilizers for example. The entire world financial system is in chaos because it’s based on a premise of “ongoing growth” (which allows credit) that is in turn dependent on cheap oil to do the work because nothing else comes even remotely close to its enormous capacity to provide energy at that low price. You will not see governments explain this to you because it’s political suicide. If you want to better understand what’s happening to the world around you, I can highly recommend highly informative sites like “www.theoildrum.com”, or “http://www.peakoil.net/”. Both have Australia specific discussions as well. You will likely be very upset by what you learn, but current events will make a lot more sense. The only hope we have of surviving the coming storm is to start presenting some real information to people. You can help make that happen by learning about these issues yourself, and then passing the information on to people you care about (or even better through public forums). Only if enough awareness is created will governments be brave enough to respond, and we’re rapidly running out of time.
Wake_up_call
you seem to have missed my tone. I am of the opinion that peak oil is imminent, not that it is decades away. Hence I have bought a turbo diesel car. Despite this it won’t insulate me from the pain much more than a regular car as diesel has gone crazy in the last few months.
My position is to be debt free so when the world is in depression because of it’s oil addiction (or overdose as seems likely) I won’t be selling my soul for food.
Sounds rather dramatic, I know, but we just aren’t ready for the impending troubles that await us.
I wish people would switch to purely electric or pneumatic vehicles, while they still require energy, aren’t oil dependent. try dubdubdub.theaircar.com
When it is financially viable to buy one of these cars I will be getting one. With the addition a solar power system on my roof I will have cheap transport.
Thanks Cameron, more power to you for preparing now. I would certainly love to see an affordable all electric that can be powered on fully renewable sources. However, we need everybody to be able to transition very quickly, not just those financially better positioned to do so. That’s where I see the major dilemma, and accordingly I see the financial impact of oil depletion to be the primary disruptive threat in years to come. Getting out of debt should certainly be a primary objective. But only if we can get the vast majority of the population more secure from financial fallout (e.g. make sure everyone can still afford get to a job and buy food) will we be able to avert major disruptions to all of us, whether we’ve prepared on an individual basis or not. The only path forward I see, is to get the message to as many as possible, as soon as possible. That’s where I’m starting to spend more effort now (as well as make any personal changes that can help). Cheers.
Rumor is the air car will be available for around $15000
Certainly a viable option for most people.
I run a corporate transport company here in SA (Smartcar Australia and Hughes Limousines SA)We are using a product in our vehicles that is reducing our fuel costs by 10% to 20% My business partner is a diesel mechanic and a true ‘petrol head’ we have investigated this product at length, The test results, from SA Regency Park test station, show a reduction in harmful emissions, this can be up to 75% I am very keen on improving our carbon footprint.
We have recently won 2 government contracts and there was a huge intersest in our fleet because of our caron foot print.
We purchase the product for $3.50 per cap and each cap we cut in half and use in any petrol, diesel and gas car holding up to 60LT’S ( for larger tank we use full cap )
Even if we see a 10% saving in fuel, it is worth every cent!
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