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Discussion Starter #1
Guess most of members don't care much about diesel prices, but you should. It will hit you on grocery prices, household items and building costs. The difference to unleaded is approaching 30 cents per litre, diesel supposed to be cheaper to make.
 

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Guess most of members don't care much about diesel prices, but you should. It will hit you on grocery prices, household items and building costs. The difference to unleaded is approaching 30 cents per litre, diesel supposed to be cheaper to make.
Its not cheaper when you consider you have paid an extra $5k to have a diesel engine.
 

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Discussion Starter #3
Don't mention it, "Michaelr", I did pay extra $5K but the local dealer now offers CRD at less than $55K drive away......
 

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Due to the rediculous disparity between petrol and diesel fuel I have written two letters off to the ACCC and the Minister for the the Environment. The reason I wrote to the minister was related to the push for diesel cars because they are now more environmentally friendly than petrol engines.
I will try and find the response letters I got from them. One of the responses was to keep the price up to discourage older diesels. Therefore I guess, it will always cost more. However, I can still do a return trip to Melb. and back (600klm) cheaper than in my Falcon, and its pretty good on fuel economy.
 

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It's worth the read.

Due to the rediculous disparity between petrol and diesel fuel I have written two letters off to the ACCC and the Minister for the the Environment. The reason I wrote to the minister was related to the push for diesel cars because they are now more environmentally friendly than petrol engines.
I will try and find the response letters I got from them. One of the responses was to keep the price up to discourage older diesels. Therefore I guess, it will always cost more. However, I can still do a return trip to Melb. and back (600klm) cheaper than in my Falcon, and its pretty good on fuel economy.
THAT WAS A QUICK FIND.:)

Australian Government
Department of the Environment, Water, Heritage and the Arts
Clean Green Motoring
Your email of 1 January 2008 to the Minister for Climate Change and Water, Senator the Hon Penny Wong concerning diesel fuel and the environment has been passed to the Minister for the Environment. Heritage and the Arts, the Hon Peter Garrett AM MP. Mr Garrett has asked me to thank you for your letter on his behalf.
With regard to your concern about diesel fuel pricing, you correctly note that diesel prices are currently higher than petrol prices. The retail price of diesel in Australia is determined by a number of factors including the Singapore benchmark price, global supply and demand and the exchange rate.
Australia's regional market is the Asia-Pacific market. Diesel is the dominant fuel in Asia and in recent years there has been a significant increase in demand, particularly as a result of the economic and industrial growth in China and India. This demand growth has resulted in increased international and wholesale diesel prices. Australian demand growth has also been strong on the back of our growing economy and the higher demand for diesel from industry. Given the high demand. production costs are not having a significant impact on the diesel price in Australia.
It is a commonly and incorrectly held view that diesel is cheaper to produce than petrol. This may have once been the case, but in order to produce the highly refined and low sulfur diesel fuels, suitable for use in modern fuel efficient cars, refiners must purchase high quality crude oil and undertake further steps in the refining process. Given the regional demand for diesel. the price of quality crude oil has also risen.
Despite recent increases in price it is worth noting that the latest International Energy Agency statistics for the September quarter 2007 confirms that Australia has the sixth lowest diesel price out of the 30 Organisation for Economic Co-operation and Development (OECD) countries.
While the uptake of diesel fuel more broadly in passenger vehicles may reduce some greenhouse gas and air pollutants, a diversity of approaches needs to be taken to address this very complex issue. Any change in government policy in this area would need to take into account a whole range of issues including whether lowering the price of diesel would also encourage continuing use of inefficient diesel vehicles in our major cities, leading to higher levels of air pollution. Rather than only targeting particular types of vehicles or fuels, the Government seeks to encourage consumer demand for any motor vehicle with good fuel efficiency and lower greenhouse impact, while encouraging innovation in technology.
Yours sincerely
Kelly Pearce
Assistant Secretary
Environment Standards Branch April 2008
This reply actually addressed every question I had per paragragh (my questions not included)

-----------------------------------------------
Thank you for your emails of 2 and 7 April 2008 concerning diesel prices.
The Australian Competition and Consumer Commission (ACCC) is responsible for administering the Trade Practices Act 1974 (the Act). The main purpose of the Act is to promote competition and efficiency in markets within Australia and to protect consumers from unlawful anti-competitive conduct and unlawful market practices.
Since 1 August 1998 diesel prices have been deregulated and wholesalers and retailers are free to set their own prices based on market conditions. However, the ACCC has a monitoring role and closely monitors diesel prices in metropolitan areas and around 110 country towns. Furthermore, the ACCC follows developments in the fuel industry and will enforce the provisions of the Act if there is evidence that it has been breached.
On 16 February 2008 the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, announced Mr Pat Walker as the Government's nominee for the new Petrol Commissioner. He also announced that he was asking the ACCC and the new commissioner to commence a renewed focus on LPG and diesel prices.
Movements in fuel prices in Australia tend to follow international benchmarks. The benchmark for diesel is the spot price of Singapore Gasoil (with 50 parts per million sulphur content). The benchmark for petrol is the spot price of Singapore Mogas 95 Unleaded, which is refined petrol and not crude oil. There is generally a time lag of around one to two weeks between changes in international prices and changes in retail prices, due to the averaging formula used by refiners in Australia when setting their wholesale prices.
Increases in the benchmark price for diesel over recent months have been a significant factor influencing the price of diesel in Australia. Between January and March 2008 the benchmark price for diesel increased by over $US20 per barrel. Factors contributing to this increase have included higher international crude oil prices and higher demand for the product.
A significant factor contributing to diesel prices being higher than petrol prices in Australia in recent months is that the international benchmark price for diesel has increased relative to the international benchmark price for petrol. Over the three months January 2008 to March 2008 the price of Singapore Gasoil was around US$ 13 per barrel higher than the price of Singapore Mogas 95 Unleaded.
I trust this information is of assistance to you.
Yours sincerely,
Gary Dobson
Director
Petrol Monitoring Section
 

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Yeah, like all the crappy buses eh?

What a joke.

Edit, I had to come back to this because the more I thought about it the more it "got my gander up".

Be aware that industry, primary industry and government departments (public transport) would be the biggest users of diesel and they all get subsidies on their fuel.

I applaud you Kel for taking the trouble of writing to the ACCC. Us Aussie are known for being apathetic and the government can just sit back and do what they like. We should all get off our rings and write too. Maybe Kel can give us his words so we can all just put it in a letter, sign it and stick it in the mail. What do you think?
 

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Discussion Starter #8
Good on you "Kelvin". But the replies from them are pathetic, basically the oil companies can charge whatever they like according to their "excuses". If the government is serious about inflation, they should really look into the price of diesel which is a major factor on costs. There is an easy way to eliminate those "inefficient" diesel motors by charging "pollution tax" to those vehicles, why should those "efficient motors" pay for it. In UK they charge differently according to the emission pollution of each vehicle. Guess I have to be very careful here, don't want to give any excuse to the government to put on a new tax for nothing.
 

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I thought they were pathetic replies also. Whilst we are subsidising the farming and transport industry 18 cents per ltr, the gov is off the hook with the major users of diesel fuel. Jo blog motorist will always pay more for diesel now.
 

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obviously we all need to convert to LPG.

does anyone know if the newest budget killed the government rebate for conversion?

aaron.
 

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Discussion Starter #12
Yep, it is $1.799 this morning. Noticed in Europe, most vehicles are now diesel, motorists are doing their bits to help cutting down the over all fuel consumptions but governments and oil companies are taking us for a ride.
 

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Fuel Prices Try 1.95 diesel and 1.90 for ulp

you guy should live in the worlds away from citys were i live we can pay up to 20cents more than the city !!!!!!!!!!!!!!!
 

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The LPG rebate is still alive and well, well for the time being anyway. Mine is still going great guns on the old autogas, costs around $10 per 100 km to run. Filled up the old 300C with petrol yesterday and it is the first time I have cracked the tonne, $104 to be exact :worried: :worried: .

Maybe you can look at the gas over diesel option.

PS: The dealer is trying to blame a rattle in the dash (stereo) on the LPG conversion, d!ckheads.
 

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Filled up the old 300C with petrol yesterday and it is the first time I have cracked the tonne, $104 to be exact :worried: :worried: .
It is scary and something we will need to get conditioned too.

I filled EARLE earlier this week. 85 litres and he only does about 330 kilometres on that :scared:
 

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Diesel takes the hit for fuel rises

Joshua Dowling, The Sydney Morning Herald, May 24, 2008


The rising cost of diesel could end the sales boom for diesel vehicles, warns the car industry. JOSHUA DOWLING reports.




Sales of petrol-powered cars are falling but could bounce back if the price of diesel continues its rapid rise.

Since 2004 sales of diesel cars have increased more than tenfold and now account for one in five new vehicles sold.

In the first four months of this year, sales of all diesel-powered vehicles have increased by 30 per cent compared with the same period last year, but sales of petrol cars have dropped by 1.6 per cent, figures from the Federal Chamber of Automotive Industries show.

But the rising cost of diesel has led to accusations that oil companies are price gouging, making up for the diminishing profit on unleaded petrol by maintaining their margins on diesel.

"The market has changed," says Andrew McKellar, the chief executive of the Federal Chamber of Automotive Industries. "If oil companies don't wake up to themselves and start being more competitive they could end up driving customers away from diesel cars."

Diesel cars are about 30 per cent more fuel-efficient than petrol cars, and generally between $2000 and $4000 dearer to buy than their otherwise identical petrol counterparts.

Their financial appeal, however, has diminished since the price of diesel fuel has soared.

Unlike petrol-powered cars, whose owners can choose from four types of unleaded fuel, diesel vehicles have only one type of diesel, and it is not as widely available as unleaded petrol.

Leading fuel price monitors believe the increase in the cost of diesel is linked to increased global demand, in particular the construction boom in China.

Figures from the fuel-watch website MotorMouth show the average price of unleaded petrol in NSW has increased from 97.8 cents a litre four years ago to 157.6 cents a litre this week, while the average price of diesel has risen from 108.8 cents a litre to 174.9 cents a litre. Both represent a 61 per cent increase.

Figures from the Australian Institute of Petroleum show there has been a long-standing difference in the wholesale price of unleaded and diesel fuels, and this is being passed on to motorists.

"The typical difference between unleaded petrol and diesel at the retail level currently is about 20 cents a litre, the same as it is at wholesale level," says Geoff Trotter, general manager of another fuel website, FUELtrac.

"The difference seems greater to motorists during those times of the week when unleaded petrol is discounted, where unleaded petrol can be up to 33 cents a litre cheaper than diesel. That's what's upsetting people."
He said the price of unleaded could vary by 10 to 12 cents a litre during the week but diesel prices remained relatively stable. "It's not so much that we're being ripped off on diesel, it's just that it's not being discounted as heavily as unleaded."

According to the Australian Institute of Petroleum only about one quarter of diesel used in Australia is sold through retail outlets. Most diesel is sold in bulk to mining and transport companies on long-term contract. "Therefore, retail diesel prices, unlike petrol prices, are not subject to aggressive discounting," the institute says.

In 2004, fewer than 2000 diesel cars were sold. Last year sales passed 27,000. However, utes and vans make up the biggest segment of diesel vehicles, growing from 62,000 sold in 2004 to more than 100,000 last year - an increase of 61 per cent in a total market that grew by 10 per cent over the same period.

The Australian Automobile Association has called for the petrol price commissioner to be given greater powers. "At the moment, the Australian Competition and Consumer Commission only has official authority over the price of unleaded petrol," said John Metcalfe, the association's director of research and policy.

FAST FACTS:
Diesel-powered cars generally have better fuel economy (up to 15% more) than gasoline engines.
In 2007 sales of
* Diesel cars up 71 per cent
* Diesel 4WDs up by 31 per cent
* Diesel utes and vans up by 28 per cent
* Diesel trucks up by 18 per cent
* Petrol vehicles up by 4.5 per cent
* Total new vehicle market up by 9.1 per cent

In 2008 sales of
* Diesel cars up by 55 per cent
* Diesel 4WDs up by 43 per cent
* Diesel utes and vans up by 18 per cent
* Petrol vehicles down by 1.6 per cent
* Total new vehicle market up by 5.1 per cent

FIRST FOUR MONTHS . FIGURES COMPARED WITH THE SAME PERIOD IN THE PREVIOUS YEAR.
FAST FACTS SOURCE: FEDERAL CHAMBER OF AUTOMOTIVE INDUSTRIES.
 

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Discussion Starter #17
Interesting read, "vcval". Fuel prices are the hot topic at the moment, we can talk as much as we want but the oil barons have the last laugh.
 

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the topic needs to be changed to:
Diesel at A$1.829!! i saw it all over melbourne today that high!! filled up in Richmond @ $1.759...
 

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Yep,"xrfr8". It is $1.829 today in Canberra too. Should get 10 cents off by using my new Woolworth shopping card for the first time tomorrow. I should have no problem for the return trip to Wollongong from Canberra in one tank and probably still have some left.
 

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Rising diesel price worries car makers

Toby Hagon, drive.com.au, June 2, 2008


The price of diesel can be 30c a litre more than petrol, sparking new concerns for car makers battling uncertain fuel prices.




Rising fuel prices and more expensive diesel has car makers such as Volkswagen “concerned”.
The price of diesel is at some outlets 30 cents per litre more than petrol. Diesel prices have been seen at almost $1.90 a litre, whereas petrol is closer to $1.60 a litre.
The higher price of diesel threatens to impact car makers such as Volkswagen, Fiat and Peugeot – among many other predominantly European brands - which now sell a range of diesel variants.
Volkswagen is a brand that’s experienced massive growth in recent years, largely on the back of a decision to import a wide range of diesel-powered vehicles.

More than 27,000 diesel passenger cars were sold in 2007, representing a 71 per cent increase over 2006.

In 2007 Volkwagen accounted for “close to 40 per cent” of the diesel passenger car market, according to VW Australia managing director Jutta Dierks.

In the first four months of 2008 more than half of Volkswagen’s Australian sales were for diesel vehicles. With some Volkswagen models, such as the Passat, 70 per cent of buyers are opting for a diesel engine.

But Dierks is concerned the reasons for buying a diesel are diminishing now that the price has increased so much.

Diesel vehicles can cost up to $10,000 more than a similar petrol-engined version, although there’s typically a $2000-odd premium (and, occasionally, no premium at all).
Yet diesel engines typically bring reductions in fuel economy of 25 or 30 per cent.

However, with diesel currently attracting a 19 per cent premium over petrol at the bowser, some buyers are already questioning whether it’s worth paying extra for a diesel vehicle.
“The price of diesel is definitely a concern,” say Dierks. “But if the market changes we can start selling petrol engines.”
Dierks believes governments should be encouraging people to buy diesel engines; diesels can reduce carbon dioxide emissions (the greenhouse gas largely blamed for global warming) but generate more noxious gases than modern petrol engines.
“In almost every country diesel is cheaper than petrol,” says Dierks. “[Governments] are doing nothing to make it more attractive to drivers.”
Fiat Australia general sales and marketing manager Ross Meyer says the appeal of diesel goes beyond the savings at the pump.
“Of course [the rising price of diesel] is a concern,” says Meyer. “But a lot of people are buying diesels for the driveability. Plus they don’t have to fill up as much.”
Diesels are renowned for their low-rev engine response, which provides strong pulling power (or torque) without the need for high engine revs. Diesel passenger cars can also get 1000km or more out of a single tank.
 
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