Dah dah daaarrrrr, errr no not quite. If your park the environmental issues to the side for just one second. You suddenly realise what the oil/Energy companies do makes perfect business sense. For example look at whos sponsoring the sliver technology, there are some excellent alternatives out there. But they quickly get snapped up by the energy sector. It makes sense to protect your investment until the market is ready. Whats upsetting is all our attempts to reduce emissions are wiped out because of gas flaring. If oil majors fixed this, we\’d all be better off. Its a total waste of energy, but they do it because tapping it off is not cost effective.

No conspiracy, but your comment reminded me of that line in the movie cars :)

we have a huge surplus, I don’t see why the relief on fuel need to be covered by somewhere else. perhaps not completely removing it, but some relief or gradually.

and in fact, the extra cost on fuel is nothing to me. and I didn’t really suggest removing the fuel tax completely, but more tried to tell the fuel tax fact. I am happy to pay tax, but when there is a big surplus, I want the money back, coz I do pay a lot of tax every year!

There are NO GOOD alternatives to oil yet. NONE, No one is hiding anything.

Re Comments about fuel and diesel:

Are you serious weirluo? Do you realise how much of a hole removing the tax on petrol will make, HUGE. Why should people who are frugal and don’t drive much pay for people how want big cars and drive for fun?

well, I admit I have never been worried about fuel/diesel price until yesterday, after I know how much tax is imposed to the pump price.

Each time you pay for fuel, do you think how much you’re paying in tax? For example:
Pump price: 150.9 Cents per litre, (cheapeat in Melbourne today)
Volume purchased: 50 Litres
Total cost: $75.45
***Tax: $25.91!!!!!
Getting rid of tax will give 99.08Cents per litre.

So Rudd, instead of spending extra millions of dollars on fuel watch, why don’t you loose the tax on fuel. I was so blinded to blame the world oil market, but I was wrong. It’s the goverment! I guess the same story can be easily applied to diesel, which is more than 20cents dearer than petrol!

“Whoever invents the next MAJOR fuel source for the automtive world will be the next Bill Gates.”

I used to work in Oil Exploration. I can tell you Oil is not just fuel, its power. The power to buy as many alternative fuel patents as you need!

Notice how the future is split into
Plug in electric or Hydrogen. My money is on plug in electric, because its the only viable solution which breaks the strong hold the oil companies have.

With hydrogen,they still plan to drag you to a station to fill up!! hmmmm do you think the price will suddenly become stable again???

Yes you could produce your own hydrogen at home. But its so expensive and far off, not to mention its a seriously volatile gas which burns without a visible flame.

OK just imagine petrol hits $5 a litre,Will the world end? No.

Everyone will car pool, use public transport, walk or buy a very fuel efficient car or do all of them.

All you “large” people who “need” a big car will suddenly fit quite well in a Honda Jazz.

By the way, at $5 a litre for petrol other technologies may provide cheaper transport. Suddenly an electric car with a 150km range starts to look very attractive.

I look forward to it.

The price of fuel is based around demand and Greed. Remove the demand, the price will drop.
Whoever invents the next MAJOR fuel source for the automtive world will be the next Bill Gates.
I’m not talking Gas, or Hybrids or electrics….
If there are watches that can be powered through contact with the human body, imagine what potentially lies ahead!!??

Its the volatility at the pumps which I think gets peoples’ goat.. I mean, what if stations filled up (refilled) once a week at a rate – say $ X.. If until they needed to refil again, the price didnt move – we would accept it.. Its the fact that Oil increases and before the station owner is able to open his doors, the per litre price jumps immediately… I would be happier if the station purchased the fuel, set a price and we paid that.. Then next week if it went up, he puts the price up a few cents (whatever) to cover that increase – and so on… Yes, it will inevitably incease over time – but least we dont end up queuing for 25 mins on A Tuesday to save between 10 – 15c…

I drive 2 V8s and accept fuel increases as part of that purchase decision.. I just hate seeing the volatility on a daily basis everytime I drive past the same petrol station.

Of course, the government are not to blame for the price – HOWEVER, we all agree they tax the shit out of it!! Why would they WANT to help us by subsidising or removing the tax on tax etc… Cause they make SOOOO much money from it… It SHOULD come back to us by way of improved roads etc etc – but that is debatable…..

My only beef with comments above “buy a smaller car” etc… I am a regular reader of this web site/forum becuase I love cars..I love newer technology (even smaller, ecomomical alternative) – but above all else, I love performance of cars… If we ALL end up driving a Prius – why bother???

One issue, we could all debate for years and get nowhere.

Let’s remove the emotion from this issue. Let’s consider the following:

1. Higher fuel prices send out the signals to consumers to either use less fuel and/or drive something which is more suitable for their needs. Here in Melbourne, there is a multitude of SUVs (4 wheel drives).
2. The Oil speculators have contributed to higher prices

3. The cost of refining crude is expensive

4. We have the 4th cheapest fuel in the OECD

5. US drivers have finally received a wake-up call after being generally apathetic since the first oil shock and before

6. The higher price encourages the development of alternatives. That is, we don’t need to be held at ransom by the Oil Industry

7. Yes, drivers need to stop wingeing and take responsibility for what they drive. If you like V8s, be prepared for the costs. We all have choices.

8. We need some politicians who have some vision to promote the development of alternative energy (yes, gas from NW Shelf for eg) instead of token ideas like reducing GST on excise and other spin. Both parties need to address this.

9. I think that people have become addicted to cheap money, too, where they are now discovering that they are living beyond their means. Eg, buying cars by drawing on the equity in their homes.

10. Remember that depreciation is the major expense of car ownership. Unfortunately, petrol, which is the most visible cost, is the easy target.

11. Higher fuel taxes were introduced to the Europeans many years ago. Look at how they have responded! Energy efficiency and quality. Look at the German brands. There is a silver lining in higher fuel prices. (The less said about the US automotive industry, the better… and US Politicians, too,,, Big Oil influences/lobbying)

Anyway, these are just a few quick notes. I must do some work now!!

But when you have been paying a reasonable amount for fuel in the past, then all of a sudden it has jumped $1 in 10 years (about 160%) compared to being 30 cents a litre in the late 70’s, up to 60 cents a litre in the late 90’s. It doesn’t really matter how much fuel is around the world.

In the UK fuel is more expensive, but so is your cost of living with everything. But to help out, your wages are better too. But what would happen when you are used to paying what you currently pay, and it’s gone up slowly over the last 30 years, with the latter 5 it also jumps 160%?

Yes, you’d still be paying more for it than we Aussies do. But that’s what you’re used to. Someone in another country where fuel might be even higher will think the same of you as you do for us right now.

It’s all relative. The price isn’t the issue. It’s the speed at which it has gone up. It took 25 years to go up 20 cents. Now all of a sudden it’s gone up $1 from then.

I’m happy paying up to about $2/L for fuel. It’ll happen. End of the year I reckon. It doesn’t bother me all that much. What does bother me is that it isn’t going up slowly so everyone can adjust. One day it’s a $1.40/L the next day it’s a $1.83/L

There’s nothing stopping it from jumping the same amount tomorrow. $2.20/L anyone?
Crazy to think that it’s going to cost that Ford Focus $150 or more to fill up. The crazy part isn’t the price. It’s that it can happen very soon.

SteveC

The only impact of fuelwatch is either bringing down the price by a few cents or increasing it by a few cents (depending on which political party you believe) which is bugger all in the great scheme of things.

NOT HAPPY RUDD!!!!!!!!!!!!!!!!!!!!! :(

I heard on the news they may bring petrol prices down (a little) but rise the price of food!

The states do not want to go without the tax on a tax money. So for the tax to go the federal Govt will have to spend a couple of Billion dollars in compensation.

Wouldn\’t you rather have a tax cut or more money spent on health rather then rewarding people most who drive the most?

You hit the nail on the head Spitfire. Petrol usage is largely and I really mean largely a discretionary expense. All most all people can easily, very easily reduce their personal usage dramatically. BUT WE DON’T WANT TO.

So stop complaining and pay up. Which in all fairness is many peoples attitude.

Petrol should be increased in price, not decreased and therefore putting a huge drag on the budget.