Raw price goes up, we pay more; raw price goes down, we pay the same

Forums › Transport (cars, bikes and boats) › Raw price goes up, we pay more; raw price goes down, we pay the same

Batman

Mad Scientist
30014 posts

Uber Geek
+1 received by user: 6217

Trusted

Lifetime subscriber

#160444 6-Jan-2015 22:13

Apparently last year crude oil was US115 a barrel. Today it's US50 a barrel. I think petrol prices at the station only went down a few cents ... hmm ...

Same with dairy products ...

Someone explain?

1 | 2 | 3 | 4 | 5

1739 posts

Uber Geek
+1 received by user: 726

Subscriber

#1209577 6-Jan-2015 22:32

What are you gonna do - stop buying petrol until it reaches 99c a litre?

Captive audience - why would a business charge 99c when it can charge double that and maintain a customer base?

I imagine that most if not all of the resellers are in varying degrees of cahoots to fix prices within a certain range as well.

Pretty much the same story with dairy - will everyone give up milk and infant formula and cheese and dairy en masse until prices reflect raw costs?

Nah.

scuwp

3927 posts

Uber Geek
+1 received by user: 2510

#1209580 6-Jan-2015 22:39

Crude is only one of the cost factors. Refinement costs and taxes (+ GST so a tax on-top of other taxes) will keep the cost at the pump higher than it probably should be.

Lazy is such an ugly word, I prefer to call it selective participation

solaybro

630 posts

Ultimate Geek
+1 received by user: 224

Trusted

#1209582 6-Jan-2015 22:39

Petrol is an inelastic good, people will buy it no matter the price. If people will still buy it then why would a petrol station decrease the price?

Kraven

738 posts

Ultimate Geek
+1 received by user: 190

#1209583 6-Jan-2015 22:42

I stumbled on the following report by the AA when I asked myself the same question a few weeks back. It explains how the cost we pay at the pump is made up.

http://www.aa.co.nz/cars/maintenance/fuel-prices-and-types/how-petrol-prices-are-calculated/

graemeh

2080 posts

Uber Geek
+1 received by user: 226

#1209585 6-Jan-2015 22:44

You're talking about products that have some very different elements in their prices.

I believe petrol has about 50% tax so even if the oil companies wanted to give the stuff away they would still have to charge you 76 cents per litre.

The petrol price has dropped dramatically over the last few months.

Geektastic

18009 posts

Uber Geek
+1 received by user: 8465

Trusted

Lifetime subscriber

#1209587 6-Jan-2015 22:50

There is wild variation.

My wife is working in Auckland and can get it very cheap (I think $1.78 or something was the last report I listened to) but here in Martinborough we are still paying over $2.

I use a BP fuel card that has a fixed price so mostly I don't care what the pump price is as I won't be paying it.

AliExpress

Shop now on AliExpress (affiliate link).

sidefx

3775 posts

Uber Geek
+1 received by user: 1295

Trusted

#1209590 6-Jan-2015 22:55

It varies wildly within auckland - a 15 minute drive can mean you pay ~25 cents less per litre - I think I got some 91 for $1.72 (-6c aa discount = 1.66) the other day (Caltex on East Tamaki Road IIRC) while places around mt eden are I think still charging 1.92+

"I was born not knowing and have had only a little time to change that here and there." | Octopus Energy | Sharesies
- Richard Feynman

SaltyNZ

8865 posts

Uber Geek
+1 received by user: 9545

Trusted

2degrees

Lifetime subscriber

#1209603 6-Jan-2015 23:55

Kraven: It explains how the cost we pay at the pump is made up.

Unintentional truth.

iPad Pro 11" + iPhone 15 Pro Max + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.

tdgeek

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#1209606 7-Jan-2015 00:16

Check out the price of bottled water per litre. Its not 5 miles + underground, shipped around the world, and refined.

DravidDavid

1907 posts

Uber Geek
+1 received by user: 305

#1209613 7-Jan-2015 01:21

Geektastic: There is wild variation.

My wife is working in Auckland and can get it very cheap (I think $1.78 or something was the last report I listened to) but here in Martinborough we are still paying over $2.

I use a BP fuel card that has a fixed price so mostly I don't care what the pump price is as I won't be paying it.

Was 1.73 here in Massey for a while. Mobil.

tdgeek: Check out the price of bottled water per litre. Its not 5 miles + underground, shipped around the world, and refined.

It has also been shown to be not so pure.

NZSpides

155 posts

Master Geek
+1 received by user: 76

#1209626 7-Jan-2015 07:01

The petroleum companies must be getting worried by the number of alternative fuel vehicles being put out there now, surely.
I know they will have their hooks into the supply chain of the new power source somehow, but the push of the car companies to alternative power is becoming very interesting.

Toyota just announced their production of Hydrogen fuel cell cars and the technology behind it, and offered free use of the 5,200 patents behind it.

Tesla doing something similar recently as well.

To be honest I want my flying car promised in Back to the future, but you never know...

Geekzone support

Support Geekzone with one-off or recurring donations Donate via PressPatron.

Batman

Mad Scientist
30014 posts

Uber Geek
+1 received by user: 6217

Trusted

Lifetime subscriber

#1209627 7-Jan-2015 07:01

and at 0500 ... http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11382725

Batman

Mad Scientist
30014 posts

Uber Geek
+1 received by user: 6217

Trusted

Lifetime subscriber

#1209628 7-Jan-2015 07:04

NZSpides: The petroleum companies must be getting worried by the number of alternative fuel vehicles being put out there now, surely.
I know they will have their hooks into the supply chain of the new power source somehow, but the push of the car companies to alternative power is becoming very interesting.

Toyota just announced their production of Hydrogen fuel cell cars and the technology behind it, and offered free use of the 5,200 patents behind it.

Tesla doing something similar recently as well.

To be honest I want my flying car promised in Back to the future, but you never know...

that has been an issue since I was in primary school. until now, nothing's changed. yet. we'll see ...

timmmay

20858 posts

Uber Geek
+1 received by user: 5350

Trusted

Lifetime subscriber

#1209630 7-Jan-2015 07:06

Useful price graph. High of $144, now $48. I guess some margins must be absolute $ rather than %.

floydbloke

3646 posts

Uber Geek
+1 received by user: 4554

ID Verified

#1209647 7-Jan-2015 08:30

Like others above, I too get frustrated having to pay what appear to be inflated prices but I am pretty much resigned to it. We all need to buy petrol, milk, electricity, etc.

What probably annoys me more though is the bullsh*t PR they spin us to try and justify it and invoke some sort of empathy. You’re a large corporate and your goal is to maximise profit and revenue to deliver the best return for your shareholders...…just say so.

Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.

1 | 2 | 3 | 4 | 5