Ricky Muir wants new laws to stop motorists being ripped off at the bowser

[csv8]

"Ricky Muir wants new laws to stop motorists being ripped off at the bowser after Melbourne petrol prices averaged $1.20 last week despite oil prices falling to a 10-year low.

Car-loving senator Ricky Muir has called on the Turnbull Government to consider new laws to stop motorists being ripped off at the bowser.

The crossbench senator vowed to take the fight against high petrol prices to Canberra and has already won the support of some of his Senate colleagues.

Melbourne petrol prices *averaged $1.20 a litre last week, despite world oil prices falling to a 10-year low.

Senator Muir told News Corp Australia it was time to review the present legislation and consider "stronger powers" to pursue and penalise gouging.

"It is no secret that when the price of a barrel of fuel goes up, the cost to the consumer seems to be passed on even before the next delivery of fuel arrives," Senator Muir said.

The price of crude oil has fallen by more than 70 per cent in the past 18 months

"Sadly, there always seems to be some excuse as to why the same does not happen when the price of a barrel drops."

Under pressure from angry motorists, Australia's corporate watchdog this week put petrol companies on notice, claiming both the retail and refinery margins were too high.

But petrol retailers have shrugged off the warning, with retail margins hitting record highs.

The Australian Competition and Consumer Commission has also started holding informal meetings with major petrol retailers, arguing motorists are not receiving the full benefit of a dramatic plunge in the oil price.

The price of crude oil has fallen by more than 70 per cent in the past 18 months, while petrol prices are only down 20 per cent.

Retail petrol margins, the difference between what a fuel station buys petrol for and what it sells it for, hit a new high of 14.6 cents a litre after stations were put on notice.

ACCC chairman Rod Sims yesterday said consumers were paying six to seven cents too much for petrol.

Senator Muir said the watchdog needed more powers to act.

Fellow Victorian crossbench senator John Madigan backed calls for an "open, transparent, competitive and fair" pricing system.

"High petrol prices hit hardest those living in rural and regional areas on low incomes," Senator Madigan said.

"Petrol is an essential product and rorting by anyone in the supply chain is unacceptable."
http://www.carsguide.com.au/car-news...-gouging-38662

[Roman earl]

Drivers have been getting ripped off for decades when crude prices rise the bowser rises the next hourl

[Giant Cranium]

http://www.fordforums.com.au/showthread.php?t=11446811

[aussie muscle]

But petrol retailers have shrugged off the warning,

of course they did. what are they going to do about it? shake their fist harder?

[Stefan]

Ricky truly is a dumb f......k

Maybe because the vast majority of the cost at the bowser are government taxes, levies and excise, add fixed cost or refinement of crude oil cost service station operations and the cost of the actual oil is probable no more then 30 or 40% of the cost of petrol at the bowser.

So if the oil cost is 50 cent in a litre of fuel. 70% drop in oil will save you 30cents a litre, which has happened.

[mitelsx2000]

Originally Posted by Stefan

Ricky truly is a dumb f......k

Maybe because the vast majority of the cost at the bowser are government taxes, levies and excise, add fixed cost or refinement of crude oil cost service station operations and the cost of the actual oil is probable no more then 30 or 40% of the cost of petrol at the bowser.

So if the oil cost is 50 cent in a litre of fuel. 70% drop in oil will save you 30cents a litre, which has happened.

The same situation on NZ,

Central Govermrnt needs revenue

[cheap]

I'll keep my message to Ricky as simple as possible: this may come as a shock, but GovCo actually wants the price of petrol to rise (not go down) because they get more money from the various taxes placed upon it.

So simple maths, if GovCo's tax is 50% of the price of fuel, when fuel is $1.50 per litre, GovCo get 75 cents in tax. And when fuel is $1.00 per litre, GovCo only get 50 cents in tax. So why would GovCo want cheaper fuel?

Oh BTY Ricky, it was great to hear from you and please keep up the communications as you seemed to be very quiet and for some people it appears as though you're not doing much except collecting your +$200,000 salary.

[Dr Terry]

Originally Posted by cheap

So simple maths, if GovCo's tax is 50% of the price of fuel, when fuel is $1.50 per litre, GovCo get 75 cents in tax. And when fuel is $1.00 per litre, GovCo only get 50 cents in tax. So why would GovCo want cheaper fuel?

This is not correct !!

The 2 main taxes applied to petrol are excise (around 39c/litre) & GST of 10 %.

At $1.50/per litre RRP, the Feds get 39c for excise & the States get 13.6c for GST. That's a total of 52.6c per litre.

At $1.00/per litre RRP, the Feds still get 39c but the States now get 9c from GST. That's 48c total taxes per litre.

So the total taxes dropped only 4.6c, when the petrol price dropped from $1.50 down to $1.00 per litre.

Given that, the Feds really have no vested interest in the price of petrol at the pump.

Dr Terry

[Cav]

My beef is not with petrol prices per se, but rather the fluctuations.

This is fine for competition, however there is an almighty flaw.

The disparity between city and country of 25c per litre cannot be entirely due to transport costs and lack of competition. There is something else going on.

They say that Coles and Woolies dominate the market and therefore can set the price.

In my town of about 6,000 we cannot generate the economies of scale that will allow retailers to drop their prices. We have three retailers - Coles, Woolies and an independent. I always get my fuel from the independent who doesn't have E10 and petrol prices are about 4c higher than the others. Pretty soon they will be forced by the NSW govmint to make E10 available for customers.
http://www.smh.com.au/nsw/ethanol-pu...01-glc6me.html

I fail to see how this will benefit the motorist.

But back to Coles and Woolies. Wherever you go in Australia Coles and Woolies sell bread and milk at rock bottom prices of $1 each, as well as other grocery lines. They could do this for petrol but choose not to.

And tell me again that if the margin for retailers in 8c, how can the price of petrol vary by as much as 12c overnight?

I know that fuel cost is a minor cost of running a motor vehicle. I am happy to pay a fair and reasonable price for fuel. What I don't like is the lack of transparency in fuel marketing. It's the Singapore price. It's the dollar. It's transportation costs. It's healthy competition (boy I'd like to know how they all can have exactly the same price in a given area)

And how many enquiries have come to nought?

[Itsme]

Originally Posted by Dr Terry

This is not correct !!

The 2 main taxes applied to petrol are excise (around 39c/litre) & GST of 10 %.

At $1.50/per litre RRP, the Feds get 39c for excise & the States get 13.6c for GST. That's a total of 52.6c per litre.

At $1.00/per litre RRP, the Feds still get 39c but the States now get 9c from GST. That's 48c total taxes per litre.

So the total taxes dropped only 4.6c, when the petrol price dropped from $1.50 down to $1.00 per litre.

Given that, the Feds really have no vested interest in the price of petrol at the pump.

Dr Terry

The Feds do have an interest since fuel excise is indexed twice a year to inflation.

[Dr Terry]

Originally Posted by trublu

The Feds do have an interest since fuel excise is indexed twice a year to inflation.

True, but excise is a fixed $ amount & doesn't vary with the price of petrol.

It doesn't matter if fuel is 50c, $1.00, $1.50, $2.00 or $2.50 per litre, the fuel excise amount is the same in $$ terms.

Dr Terry.

[blakef6]

Originally Posted by aussie muscle

of course they did. what are they going to do about it? shake their fist harder?
image

hahahahaha

[Rockape]

This ^^^^^
High fuel prices are good for government

[Cav]

So many enquiries into petrol, so little action.

They say that the margins are very slim, only a couple of cents per litre.

Well I left Tumut on Thursday and petrol was $1.29.

Later that day I was in Shellharbout and the petrol was $0.99

Please explain?

[SYZ]

Originally Posted by Cav

Well I left Tumut on Thursday and petrol was $1.29.

Later that day I was in Shellharbour and the petrol was $0.99 Please explain?

3½ hours driving time. Simple.

[vztrt]

Originally Posted by Rockape

This ^^^^^
High fuel prices are good for government

What happens when government revenue drops??

Either way people are going to pay.

[Rockape]

Originally Posted by vztrt

What happens when government revenue drops??

Either way people are going to pay.

They'll have to take a car to the fundraiser not the helicopter.

[rex351]

Everyone likes a payrise, fuel companies included

[blakef6]

Ricky is a moronic bogan. Do not take any notice of him

[Itsme]

Ricky is just another politician who has jumped on the band wagon in which nothing will happen to help reduce fuel prices.
All talk no action!

[Shonky.]

Ricky Muir on Economics, international trade and game theory; would not even bother reading it, guy needs to crack a book first if he's gonna wade into that

[wicksy]

Curious, what are peoples locations and what they are paying??

[Kingsley]

Originally Posted by wicksy

Curious, what are peoples locations and what they are paying??

$1.21 in Newcastle, $1.09 in Maitland which is 33 kms away.
Beresfield BP $1.24 which is 13 kms from Maitland. It's usually the other way around. Maitland is usually the dearest.

[sprintman1]

117.7 for 98 got my attention this morning. No complaints from me about the 6c/litre drop

[PHANTMXR6]

154.4 for 98 last week in Darwin.

[blueoval]

97c for 91ron. $1.20 for P100 where I live.

[simon varley]

The price cycle is sheer profiteering though. Could do with that disappearing.

[sprintman1]

Again, thankyou Mr. Costco for bringing fuel price relief every day.

[nuthin' fancy]

The whole process around fuel pricing is as clear as mud. I'm all for producers getting enough for their product (put milk up 20c/l tomorrow, as long as it goes to the farmers) and distributors adding anough to sustain their business.

What occurs with fuel is not transparent and we are being ripped off. The ACCC seem powerless to do anything.

As for Ricky Muir, the only thing I have heard was on Kitchen Cabinet and I was more than impressed. He never expected to get elected and he is focussed on the learning before he opens his mouth.

[Pis-ton broke]

Originally Posted by nuthin' fancy

What occurs with fuel is not transparent and we are being ripped off. The ACCC seem powerless to do anything.

i thought it was the accc job to find fix and fine bad market practices. ever since alan fells left the accc , all has gone quite. he had telstra and other big companies in court all the time for unfair trading practices. the accc need someone with some balls.