Auto Gas $0.57/litre - What The!!

[Robe]

How the hell can auto gas be 57 cents this morning?

In Melbourne gas has nearly trippled in price in nearly three years. :

[Powdered Toast Man]

Hey its better than whatever petrol is. If gas is 57c, 91 octane must be about $1.50 (I didn't look this morning).

Ahh, the days of 15c/L gas. Those were the days.

[RavenLS1]

Originally Posted by Powdered Toast Man

Hey its better than whatever petrol is. If gas is 57c, 91 octane must be about $1.50 (I didn't look this morning).

Ahh, the days of 15c/L gas. Those were the days.

yeah, but you need oil to make petrol, whens the goverment going to pull its bloody finger out and stop this B.S.

[gtfpv]

you dont think the GOVT is going to hand out rebates for LPG conversions, and not rake it back now do you. have you ever known the current government to do otherwise . or any govt for that matter.

[Dave_au]

Originally Posted by RAVEN81

yeah, but you need oil to make petrol, whens the goverment going to pull its bloody finger out and stop this B.S.

As soon as the government privatises the entire healthcare system, sells all public infrastructure and ends social security services.

[jaydee]

I've grizzled many times about the price of gas. When I had my first conversion done in 1994, gas was a third of the price of petrol. Over the years it has crept up.
Now it seems to be an unwritten law that it must be half the price of petrol. And the price of petrol is based upon what a barrel is going for in Singapore.

So what ever the price is in Singapore dictates what petrol is here in Oz and then gas is about half of that.

Petrol can go up 5 cents overnight and everyone whinges, gas goes up 20% overnight and nothing.

A few years ago gas in Japan was 6 cents a litre, and where do they get their gas from,? Oz, thats right.

[Dave_au]

Originally Posted by jaydee

A few years ago gas in Japan was 6 cents a litre, and where do they get their gas from,? Oz, thats right.

WRONG

http://www.aip.com.au/industry/fact_liquid_gas.htm

The retail price of LPG in Japan for the month of November 2001 was about A$0.95 per litre.

What is the price of Australian exports of LPG to Japan?

• There is an urban myth that Australia exports LPG to Japan at extremely low prices relative to the price of LPG in Australia. This is entirely wrong.
• LPG sold to Japan is priced around or above the current Saudi Aramco LPG contract price. As Australian LPG producers are located in closer proximity to Japan than Middle East producers they have a freight advantage which provides the opportunity to sell Australian LPG at a premium to the Saudi price.
• The estimated average price of propane and butane exports to Japan for November 2001 from the North West Shelf is around 25 Australian cents per litre. This is the price importers pay in Australia prior to shipment to Japan, and is indicative of the price which other production areas, such as Bass Strait, receives for exports to Japan.
• The final retail price of Australian LPG exported to Japan, in addition to the export price, includes transport, insurance and demurrage costs. The estimated retail price of automotive LPG in Japan in November was around A$0.95 a litre which is significantly higher than the retail price of automotive LPG in Australia.
• The export price of LPG to Japan is a 'bulk" price reflecting that Australian LPG is exported to Japan in very large quantities (a shipment may hold over 40,000 tonnes) direct from a bulk storage terminal in Australia.

[sgt_doofey]

It's about that price over here in SA. Has been for a little while now. Cheapest I've seen it in a while is about 52-53c/L. Luckily I've got a near full tank and I don't drive it over the weekends as it'll probably go up over 60C/L for the long weekend.
Can't wait until the excise comes in as well. Another hike in the price of LPG. Hopefully I should have replaced the EL by then though...

[AU_Steve]

I have had my AU on gas for nearly 3 months now, and in Canberra it hasn't changed from 57c per litre throughout that entire time (though I haven't checked it today).

Last time in Melbourne I thought at 47c per litre, I was thinking why everybody wasn't using it, and why is it that Canberra is getting ripped off as usual.

Cheers

[DirtyHarry]

I have never paid more than 51.9c/L for LPG in Sydney. I filled up at 51.9 last night and regular unleaded petrol was $1.31. I'm not complaining.

[KingLemmywinks]

oh my god!!!!! i was going to have a bbq this weekend, but now it looks like I wont beable to afford it

[zhodak]

Originally Posted by AU_Steve

I have had my AU on gas for nearly 3 months now, and in Canberra it hasn't changed from 57c per litre throughout that entire time (though I haven't checked it today).

Go to United on Canberra Avenue, regularly at 49.9c. I used go there all time when I had my ute.

[DirtyHarry]

Originally Posted by RAVEN81

yeah, but you need oil to make petrol, whens the goverment going to pull its bloody finger out and stop this B.S.

Originally Posted by gtfpv

you dont think the GOVT is going to hand out rebates for LPG conversions, and not rake it back now do you. have you ever known the current government to do otherwise . or any govt for that matter.

There is currently NO excise on LPG. Zero. Zip. Nada. Nothing.

So what, exactly, is the government supposed to cut? And what is it "raking in".

There WILL be an excise on LPG, starting in the middle of next year. The initial excise will be a HUGE 2.5c/L. It will go up by 2.5c/L per year until it peaks at 12.5c/L in 2012. Heavens knows what petrol will be worth by then.

And for the conspiracy theorists linking the excise to the rebate announced last year, the excise was announced in December 2003, almost 3 years before the rebate was introduced and 4 1/2 years before the first 2.5c/L excise will be levied in 2008.

Taxation by stealth? A surprise, shock, ambush style tax imposition? I think not.

[sexr6tasy]

Far as im aware its about supply and demand if the govs handing out money saying go get gas im sure heaps of people have used it put gas on there cars, therefore more people using gas equals more demand and higher prices thats the real reason gas will go up considerable in the years to come i believe.

[DirtyHarry]

Originally Posted by sexr6tasy

Far as im aware its about supply and demand if the govs handing out money saying go get gas im sure heaps of people have used it put gas on there cars, therefore more people using gas equals more demand and higher prices thats the real reason gas will go up considerable in the years to come i believe.

You are right to some extent - it is a supply and demand issue. The market decides the price.

BUT, it's a global market. The teensy, tiny, miniscule impact Australian car owners have on global demand for LPG would have no material effect on the pump price whatsoever

[MeLLy]

well this morning in adelaide 59.9...as i was driving last night i noticed many petrol stations changing their numbers on petrol and gas...last night it was 52.6 but both liberty's on torrens road are 49.9...thats the cheapest it is!...which sucks...

[jaydee]

Originally Posted by Dave_au

WRONG

http://www.aip.com.au/industry/fact_liquid_gas.htm

The retail price of LPG in Japan for the month of November 2001 was about A$0.95 per litre.

What is the price of Australian exports of LPG to Japan?

• There is an urban myth that Australia exports LPG to Japan at extremely low prices relative to the price of LPG in Australia. This is entirely wrong.
• LPG sold to Japan is priced around or above the current Saudi Aramco LPG contract price. As Australian LPG producers are located in closer proximity to Japan than Middle East producers they have a freight advantage which provides the opportunity to sell Australian LPG at a premium to the Saudi price.
• The estimated average price of propane and butane exports to Japan for November 2001 from the North West Shelf is around 25 Australian cents per litre. This is the price importers pay in Australia prior to shipment to Japan, and is indicative of the price which other production areas, such as Bass Strait, receives for exports to Japan.
• The final retail price of Australian LPG exported to Japan, in addition to the export price, includes transport, insurance and demurrage costs. The estimated retail price of automotive LPG in Japan in November was around A$0.95 a litre which is significantly higher than the retail price of automotive LPG in Australia.
• The export price of LPG to Japan is a 'bulk" price reflecting that Australian LPG is exported to Japan in very large quantities (a shipment may hold over 40,000 tonnes) direct from a bulk storage terminal in Australia.

I stand corrected, just going by what a gas guy was telling me so I thought he'd know what he's talking about, apparently not.

I have 3 Shell servo's nearby, one in a lower socio economic suburb (sheetsville), and he's consistently lower than the other 2 only 3 kays away.
Today he's 49.9, thats 7 cents cheaper than the other 2, with my 4c shopper docket and an extra 4c from Coles Myer I can get it for 41.9.

So if all 3 are Shell how come the other guy can do it 7c cheaper??

[sexr6tasy]

Im led to believe that they sell the gas or petrol for just above the price they paid for it so if he brought his earlier when it was cheaper then the other 2 he could charge less for it but i doubt this is always true lol

[nobbystang]

Wait until the gas finally gets some excises on it like petrol!!!!

[Dave_au]

Originally Posted by jaydee

I stand corrected, just going by what a gas guy was telling me so I thought he'd know what he's talking about, apparently not.

Yeah I know that type of person, they pick up on every rumour in their particular industry or field then reguritate it to those who will listen as fact.

[DJM83]

Originally Posted by Robe

How the hell can auto gas be 57 cents this morning?

In Melbourne gas has nearly trippled in price in nearly three years. :

Get a bike

[Bucket]

Mr Howard has offered the ACCC more power to get stuck into the Oil Companies for slacking off on ensuring oil prices correlate to the Singapore and international marktet.

Read Here

[DirtyHarry]

Originally Posted by nobbystang

Wait until the gas finally gets some excises on it like petrol!!!!

Yaaaaawnnn...here we go again.

Read post #13.

[atec77]

Originally Posted by Robe

How the hell can auto gas be 57 cents this morning?

In Melbourne gas has nearly trippled in price in nearly three years. :

Thats know as price gouging for the long weekend

[trick_xd]

yes its bad that your paying 57 cents and yet I have to pay 59.9 until the weekends when it goes up to 62.5

[schmidty]

Geelong seems to be about the best place around to have a car on LPG. I just filled up for .44cpl. And a week ago i was slightly jacked off because LPG jumped from 40 - 44cpl over night. Thats a 10% increase in a day, and its stayed there. Would be like petrol jumping another 13c tomorrow.

[DirtyHarry]

Originally Posted by trick_xd

yes its bad that your paying 57 cents and yet I have to pay 59.9 until the weekends when it goes up to 62.5

What are you paying for petrol out there?

[Jastel]

Try 74.9c/litre, THEN you guys can whinge!!!!

And Shell petrol jumped 10c/litre last week here, others jumped 5c so Shell had to back down

I haven't seen 57c for about 2 years

[bArNsY]

has anyone stopped to think the lpg is a by-product of petrol hence the upward trend in one generally leads to a upward trend in the other.

[Dr Smith]

Originally Posted by bArNsY

has anyone stopped to think the lpg is a by-product of petrol hence the upward trend in one generally leads to a upward trend in the other.

You have the cart before the horse so to speak, LPG is a usually a propane/butane blend derived from oil or gas fields.

Taken from:http://www.lpgaustralia.com.au/displaycommon.cfm?an=4

LPG occurs naturally in crude oil and natural gas production fields and is also produced in the oil refining process. Australia has five sources of naturally occurring LPG - Bass Strait (1,050) kilotonnes (kt)), Cooper Basin in Central Australia (410 kt), North West Shelf (810 kt) Kwinana in Western Australia (330 kt) and Surat Basin in Queensland (16 kt) .

And pricing isn't always similar because our wholseale petrol price (note that's petrol price and not oil price as the media keeps reporting), is set to a Singapore benchmark while LPG is set to a Saudi benchmark. By the way the often US quoted oil barrel price has NO bearing on Australian pricing in any way.

Here's Caltex's spin on why they rip us off:
http://www.caltex.com.au/about_news_detail.asp?id=966