Petrol prices and interest rates

So given it was apparently Kevin's fault that interest rates and petrol prices kept going up, should the Opposition give him due credit for the recent huge drops? It was a question posed by a letter writer in the SMH today. Seems pretty reasonable. My father held Kev responsible, so I'd best get onto him too.
Scott
 
More then happy to give KRudd and his government credit for the fall in interest rates and petrol prices.

As long as he takes the credit for share market decline, fall in Aussie dollar, fall in house prices, increased unemployment,losses in super funds :)

Cheers,
Oracle.
 
More then happy to give KRudd .. credit for the fall in interest rates and petrol prices.

As long as he takes the credit for .... fall in house prices......

I log onto a property site occasionally and they tell me there is no fall in house prices. And even if there were, why would he need to apologise?
 
I log onto a property site occasionally and they tell me there is no fall in house prices.
Just wondering if "Kev from Queensland" sometimes or his minders log onto this site to see what happening,i know Mr Turnbull does have alook every now and again;)..willair..
'
 
It's lame to blame someone else.

Why worry about the current situation? Just go with the flow... there are opportunities to make money regardless of what is happening.
 
Why has the price of petrol fallen, can anyone tell me?

I hear the cost per barrel has dropped but so has the buying power of the Aussie Dollar.

I could never understand why it went so high given that the Aussie Dollar was so strong.

Seems to me that there is very little relationship between the cost and the sell price. Perhaps less people are engaging in frivolous travel and this is simply a way to stimulate the market.

It's a puzzlement.

Andrew
 
Bah petrol.

Bring on house prices falling so I can afford to buy somewhere I can WALK everywhere!

My car needs a rest.

Either that, or can someone please move my house from where it is now to our block of land in walk-everywhere land?
 
I think it is just what some people do, part like Xenia says, somebody to blame...perhaps part for deep seated political siding, then we get media input, more to it but is it a society type psychology thing? or individual?

That is the tricky question. These guys do a good bit of political-type-music-theatre: :)

I could see this played as each new Prime Minister and Cabinet are sworn in....

**I used to rule the world
Seas would rise when I gave the word
Now in the morning I sweep alone
Sweep the streets I used to own

I used to roll the dice
Feel the fear in my enemy's eyes
Listen as the crowd would sing:
"Now the old king is dead! Long live the king!"
One minute I held the key
Next the walls were closed on me
And I discovered that my castles stand
Upon pillars of salt, pillars of sand

I hear Jerusalem bells are ringing
Roman Cavalry choirs are singing
Be my mirror my sword and shield
My missionaries in a foreign field
For some reason I can't explain
Once you know there was never, never an honest word
That was when I ruled the world
(Ohhh)

It was the wicked and wild wind
Blew down the doors to let me in.
Shattered windows and the sound of drums
People couldn't believe what I'd become
Revolutionaries Wait
For my head on a silver plate
Just a puppet on a lonely string
Oh who would ever want to be king?


Hear Jerusalem bells are ringings
Roman Cavalry choirs are singing
Be my mirror my sword and shield
My missionaries in a foreign field
For some reason I can not explain
I know Saint Peter will call my name
Never an honest word
But that was when I ruled the world
(Oooooh Oooooh Oooooh)**

(Viva La Vida-Coldplay)
 
Why has the price of petrol fallen, can anyone tell me?

Supply and demand. At the peak, a barrel was about $150. It was in so much demand I think that China and India were even stockpiling the stuff. Now with the GFC, demand has dropped right off and a barrel is only $44 as of today. Which is a massive 70% drop.. I'm not too sure of the time lag of when we pay for it with today's dollar and when its at our bowser with a different exchange rate tho..

Just some rough maths.. if we paid $150 a barrel when our dollar was US 97c - the price of petrol in QLD was about $1.50/L at the time.

Now if oil is about $50 a barrel and our dollar is US 66c - price of petrol should be about $0.75/L, when it is in fact $1.00/L. So the price we pay should drop a bit further with the time lag.
 
Now if oil is about $50 a barrel and our dollar is US 66c - price of petrol should be about $0.75/L, when it is in fact $1.00/L. So the price we pay should drop a bit further with the time lag.

And Diesel, Epoxy resin and anything else made from oil should be cheaper as well.

LPG? Should that be down as well?

Bit of a worry when its almost cheaper to drive the old Valiant on petrol compared to LPG.

Dave
 
So given it was apparently Kevin's fault that interest rates and petrol prices kept going up, should the Opposition give him due credit for the recent huge drops? It was a question posed by a letter writer in the SMH today. Seems pretty reasonable. My father held Kev responsible, so I'd best get onto him too.
Scott

Actually it was the Rudd/Swan that was blaming the Howard government for high interest rates.
 
Not sure why K.Rudd should get any credit for the drop in petrol prices, seeing as though he doesn't set the price of oil... and fuel watch was a a bit of a failure, since it hasn't stop the retailers from colluding.

Swanny's attempt at making the banks pass on the full rate cuts is kinda laughable :rolleyes: Why give them credit for the IR drop? Its the RBA's job.

It would be nice if the gov made banks abolish their exit fees on variable loans.. but I don't expect it. its really a case of buyer beware, and do your homework.
 
Why has the price of petrol fallen, can anyone tell me?

I hear the cost per barrel has dropped but so has the buying power of the Aussie Dollar.

I could never understand why it went so high given that the Aussie Dollar was so strong.

Seems to me that there is very little relationship between the cost and the sell price. Perhaps less people are engaging in frivolous travel and this is simply a way to stimulate the market.

It's a puzzlement.

Andrew
This may help..willair..
Is this the end of OPEC?
The plunge from $148 a barrel to $50 a barrel in less than five months has opened huge fissures in the Organization of Petroleum Exporting Countries. Some members, such as Iran and Venezuela, are desperate to raise oil prices so they can balance their national accounts. More-conservative members, such as Saudi Arabia, can balance their budgets even at current prices and have room to fear they will be the scapegoats if the global recession deepens.
We've sat deathwatch for OPEC before, but this time the cartel's future looks especially bleak. Its Nov. 29 meeting in Cairo, Egypt, ended with members deeply divided. The Venezuelas and Irans of OPEC have dug themselves into such a big spending hole that their only way out would be for OPEC to raise prices by cutting production while letting the cartel's hardest-pressed members cheat.
OPEC couldn't agree on any production cuts in Cairo but promised to revisit the issue Dec. 17. The burden of production cuts would fall almost totally on the Saudis and other conservative Middle Eastern oil producers. That's why the Saudis didn't buy into that deal in Cairo and why they might balk again. That result could leave OPEC standing but effectively end the cartel's power to change the balance of global supply and demand.

In the short run, that would be great for consumers. In the long run, it would lead to global energy chaos. Where oil demand is growing

How did OPEC get into this mess? Consumers in OPEC countries are becoming just as addicted to oil as their counterparts in the United States. According to the latest forecast from the International Energy Agency, oil demand from the world's developed economies will fall by about 3 million barrels a day between 2007 and 2030. In that same period, the countries of the Middle East will be one of the three major sources of oil-demand growth in the world. Overall, about 43% of global oil-demand growth will come from China, according to the forecast, with India and the Middle East contributing 20% each.



It's easy to understand why China's and India's oil demand is growing so fast. They have immense populations -- 1.3 billion and 1.1 billion, respectively -- and emerging middle classes that are just starting to buy cars and the other high-consumption trappings of developed economies.

But the Middle East? Egypt, the most populous country in the region, has just 80 million people. Iran, 70 million. Saudi Arabia, just 27 million. So why are these countries projected to add as much to global demand for oil as India over the next two decades?
  • Demographics certainly play a part. These are some of the youngest and therefore fastest-growing economies in the world.
  • National investment plans heavily favor oil- and energy-intensive projects, such as chemical plants.
  • And subsidies. In 2007, Iran spent almost $20 billion more on energy subsidies than China did. Three Middle Eastern countries -- Iran, Saudi Arabia and Egypt -- make the International Energy Agency's global top eight for energy subsidies in the developing world. Another OPEC member, Venezuela, also makes the top eight. That group is rounded out by China, India, Indonesia and Russia. Subsidize oil prices, and consumers will buy and consume more. Pretty simple.
  • By Jim Jubak..
 
Just some rough maths.. if we paid $150 a barrel when our dollar was US 97c - the price of petrol in QLD was about $1.50/L at the time.

Now if oil is about $50 a barrel and our dollar is US 66c - price of petrol should be about $0.75/L, when it is in fact $1.00/L. So the price we pay should drop a bit further with the time lag.

I'm no expert on all this but, the prices per barrell is only part of the equation, there are taxes (unchanged), shipping costs (increasing) and petrol station/distributors margins (increasing). The chart below details some of it, the gap between the gate price (TGP) and retail is the how much the service stations make, does appears as though the "dips" aren't as low as they used to be.

snapshot_notes_2.png
 
The difference in buying and selling price unleaded petrol in Australia for service stations. Does not include selling and operating costs.

So the question is has the operating cost increased for service stations or are they just selling less chocolate bars and have to make up the difference somewhere?


factsheet6_2.gif
 
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Not sure why K.Rudd should get any credit for the drop in petrol prices, seeing as though he doesn't set the price of oil...

Of course he shouldn't. I probably should have used one of those silly smiley faces. But I like to think the majority of people can detect irony, sarcasm etc.
 
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