STORY LINK

Petrol at 90c on way
By Peter Michael
30jan00

Soaring petrol prices may soon tip the 90c a litre mark, the industry has warned.

But yesterday, motorists were given some relief as stations dropped their prices to the mid 70c a litre mark. Consumers made the most of the cheaper prices, as pump prices began to drop from yesterday morning to average around 74c a litre.

Liberty Oil State manager, Mr Kingsley Songer, said movement in the market sparked the decrease, as petrol stations across the metropolitan area followed suit.

"We have had a couple of areas where it was starting to get a little more competitive," Mr Songer said.

And he expected the price to drop slightly again today, predicting to around 73c.

Petrol discount king, Mike Skorpos, warned motorists to fill up "as soon as possible" because there was no telling how high the price may go this week.

"The rumors are it's just going to keep going up and up. The oil-producing companies have us in a stranglehold," Mr Skorpos said.

In the past two weeks, both motorists and retailers have been stunned by the wholesale increase in petrol prices  up more than 4c.

And consumers are being urged to take advantage of local discounting trends by fuelling up on Sundays, Mondays and Tuesdays.

Unleaded petrol has soared above 80c a litre across the metropolitan area  peaking at a monthly high of 86.3c  with higher crude oil prices forcing the price hike.

RAA spokeswoman, Wendy Bevan, said petrol prices in Adelaide generally rose 1c a litre at the pump for every $1 increase in the price of crude oil. And motorists can expect more rises in fuel costs, she warned.

"There is a direct link between the price of crude oil to the price at the pump," Ms Bevan said. "But just how high it will go is anybody's guess."

Mr Songer yesterday revealed industry fears about the looming 90c a litre mark.

He said the soaring costs was "in the lap of the gods" with high crude oil prices combining with a fluctuating Australian dollar.

"I think we are going to get very close," he said.

"It is in the lap of gods as to exactly how high it will go ... and there is no sign at all of it abating."

He said the wholesale price had gone up 4c in the past fortnight. "And if it does the same over next two weeks then we can expect to break the 90c mark."

Motor Trades Association (SA) president, Mr Colin Heavyside, said the huge fluctuations in the retail price was related to the oil company rebate system.

"It is a system which both the consumer and retailer have lived with for many years," he said.

"At the moment we are seeing quite large jumps in the wholesale price. It has risen in the past week by about 2c. But the margins to the retailers remains virtually the same, whether it is up to 82c or if it stays at 72c."

Due to the rebates provided by oil companies earlier in the week, it is cheaper to shop for petrol on Sunday, Monday and Tuesday.

Ms Bevan urged motorists to take advantage of Adelaide's weekly discounting cycle and shop for their petrol earlier in the week.

--------------------------------

Comment:
This issue is talked about throughout the rural sector in Australia. Some talk has it that private truckers are feeling the pressure a bit.
$0.90 cents Australia is about $US1.50 which is about $US6.75 per gallon.

Regards from OZ

-- Pieter (zaadz@icisp.net.au), January 29, 2000

Answers

From those who are about to join you, a hearty
"poor bastards!?!".

-- pliney the younger (pliney@puget.sound), January 29, 2000.

$6.75 gal? Sheesh! Thanks for translating the figure for us here in the states Pieter. Keep us posted!

Thanks

Hokie

-- Hokie (Hokie_@hotmail.com), January 29, 2000.

You're getting lax Hokie. You were supposed to say, Oh I feel so sorry for the children of those truck drivers.

-- Guy Daley (guydaley@bwn.net), January 29, 2000.

US$ Price Calculation Correction:

AU$0.90/liter equates to US$0.60/liter (not US$1.50, using exchange rate of AU$0.67/USD), or US$2.27/gallon (US$0.60/liter X 3.79 liters/ gallon). BTW 'petrol' price is NZ$0.92/liter = US$1.74/gallon.

-- Brad O'Mara (brado@xtra.co.nz), January 29, 2000.

US$ Price Calculation Correction: US$2.27/gallon not US$6.75

Equivalent US price/gallon = US$2.27, not US6.75 as miscalculated above: AU$0.90/liter equates to US$0.60/liter (using exchange rate of AU$0.67/USD), or US$2.27/gallon (US$0.60/liter X 3.79 liters/ gallon). BTW 'petrol' price on South Island of New Zealand is NZ$0.92/liter = US$1.74/gallon and rising.

-- Brad O'Mara (brado@xtra.co.nz), January 29, 2000.

4.5 litres (approx) = 1 gallon
Aus 62 cents(overnight fall) = 1 US Dollar
Aus 90 cents = 1.50 US Dollar (approx.)
Aus 90 cents = 1 litre of go-go juice
Aus 90 cents x 4.5 litres = 1 gallon (approx) 1 gallon = $Aus4.05 $Aus4.05 = $US?.?? per gallon

Regards from OZ (I failed accountancy)

-- Pieter (zaadz@icisp.net.au), January 30, 2000.

Whoopsy! This drongo is maths challenged, but here goes again!
4.5 litres (approx) = 1 gallon
Aus 62 cents(overnight fall) = 1 US Dollar
Aus 90 cents = 1.50 US Dollar (approx.)
Aus 90 cents = 1 litre of go-go juice
Aus 90 cents x 4.5 litres = 1 gallon (approx)
1 gallon = $Aus4.05
$Aus4.05 = $US?.?? per gallon

Regards from OZ (I failed accountancy)

-- Pieter (zaadz@icisp.net.au), January 30, 2000.

Pieter - Australia and Canada use the Imperial Gallon - the US uses the US gallon (what else?) and it is I believe 20% less than the imperial, so that alters the calculation once again.

-- Laurane (familyties@rttinc.com), January 30, 2000.

This US gallon versus Imperial gallon and them exchange rates bugger me up every time. So my stuff is stuffed well and true. Heck, we pay over 90 cents already Australian which I've just been told has to be computed the other way around by saying 100 cents makes for 62 Yankee dollar cents rather than my way which said it all backwards. Sheesh. When did those Americans decide to change the gallons weight? Stick to litres for goodness sake. They don't even drive on the correct side of the road! Our cricket overs are spoiled by Kentucky Fried Chicken advertisements. How can you barrack for such a global shambles in spices! I'm amazed the programmers kept it all together as they have. Who'd have thought! We went decimal in 1966. It's about time they slackos got it together and went too. By the way, petrol is over a dollar in the outback north of woop woop. OK, rant over...Fancy spoiling a good story.....hehehe

Regards from Down Under

-- Pieter (zaadz@icisp.net.au), January 30, 2000.

Guy, knowing what truck drivers make, it's hard to feel sorry for them.

-- Hokie (Hokie_@hotmail.com), January 30, 2000.