With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred.
What happened to Abbotts election promise of forcing down our cost of living?

I thought it was the petrol companies that were responsible for high petrol prices.....

Frances wrote on Jan 8^th, 2014 at 7:02pm:

I thought it was the petrol companies that were responsible for high petrol prices.....

When the dollar drops everything we import gets more expensive...including petrol.
Abbott has told the reserve to spend as many billions (borrowed money) as it takes to collapse the Aussie dollar.

Well this one takes the cake for blowing it out your arse Crowbait....  I suggest you check with Kevin and his Fuel Watch Commissioner.  ;D ;D ;D

Abbott collapsing the dollar and raising the cost of oil, this means transportation costs will increase and so will rip through the economy like a boxing day tsunami

The cost of food will now be even more expensive because of the economic illiterate abbott.

Majority of voters, I bet their new years resolutions where dump Abbott at the DD election this year.

____ wrote on Jan 8^th, 2014 at 8:47pm:

Abbott collapsing the dollar and raising the cost of oil, this means transportation costs will increase and so will rip through the economy like a boxing day tsunami The cost of food will now be even more expensive because of the economic illiterate abbott. Majority of voters, I bet their new years resolutions where dump Abbott at the DD election this year.

Abbott didn't collapse to $ you DOLT...  it floats...  ask Paul Keating about it.
Abbott didn't raise the cost of oil...  ask the Fuel Watcher about it.

You are almost as stupid as Crowbait, but at least the ALP pay him for quantity if not quality...

Abbott's stupidity does have consequences … the dollar is collapsing because Abbott is destroying our economy.
A lower value currency and imports like petrol are more expensive.
More expensive transport costs hits the wallets of all Australians.

Next, Abbott will force up unemployment so to attack IR laws and reintroduce the cons workchoices attack.

Unfortunately the dollar does have to collapse. It's true value is about 75 c - 82.

The only reason it has been doing so well against other currencies is because they were doing so poorly, being the Euro and USD. While the EU and US governments are broke, their economies are not, and you cannot give the same value to a unit of our currency as to the US economy, that's just silly.

The bulk of the price of petrol comes from excise. If you got rid of the excise, you'd get rid of the expensive cost. However, you would need to implement price fixing - because - if you removed the excise - the oil producers who know from past experience that petrol can bear that price, will keep that price and pocket the difference that was previously paid to the commonwealth as excise.

The commonwealth also likes getting fuel excise, and at the moment especially, needs every bit it can get.

I am not against removing fuel excise and price fixing petrol - but its a big big step.

adelcrow wrote on Jan 8^th, 2014 at 6:52pm:

With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred. What happened to Abbotts election promise of forcing down our cost of living?

If you contracted a particularly virulent STD which affected you mentally, ya know the kind that would make you a  dim-witted idiot, or you were indeed just born with that condition, you'd blame it on Tony Abbott.........you and your eejit sheeples are really an extremely credible crowd aren't you.........no answer needed!   ::)

As at 01.01.14 the ACCC made woollies and coles limit their fuel discount dockets to 4c a litre. They say it artificially inflated petrol prices......................


yeah that's why we're now paying 165.9 c a litre

ACCC they always get it right?

adelcrow wrote on Jan 8^th, 2014 at 6:52pm:

With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred. What happened to Abbotts election promise of forcing down our cost of living?

Were you born post Christmas 2012? That would explain your ignorance of the fact that petrol companies ALWAYS boost the price of petrol during peak periods such as Christmas, NYE, school holidays, etc. Got absolutely ZERO to do with Abbott. Good grief, you're a moron!  ::)

Actually, it is not possible for our RBA to target the exchange rate and interest rates at the same time.

Unfortunately, I still have 73 posts to go before I can add a link.

Hint: Google global oil production for 2013 and notice the recent drop. Combine that with a frightfully cold northern winter and the Libyans not producing then the increased price will be explained.

Got jack to do with Abbott or his predecessor.

Australia produces enough crude oil for our domestic purposes, that we can have enough to export. I think the government is just ripping us off for profit.

crocodile wrote on Jan 8^th, 2014 at 10:15pm:

Unfortunately, I still have 73 posts to go before I can add a link.

You can still provide a link, it just won't be clickable thats all  ;)

UnSubRocky wrote on Jan 9^th, 2014 at 12:21am:

Australia produces enough crude oil for our domestic purposes, that we can have enough to export. I think the government is just ripping us off for profit.

This doesn't seem to be correct.


Quote:

20 June 2012, 6.16am AEST Australia’s growing oil imports are an energy security issue In 2011, Australia’s oil production stood at 484,000 barrels per day (bpd). This is the lowest level since 1983. It is worth noting that Australia’s oil production dropped by 41% from the peak of 819,000 bpd in 2000. Australia’s current oil-producing provinces, such as the Carnarvon Basin and the Gippsland Basin, were discovered before 1972. The history of hydrocarbon exploration over the past four decades has been one of delineating these basins’ full potential. As a consequence, Australia has only 3.9 billion barrels of proved oil reserves, or 0.2 percent of world total. According to the Australian Mines and Metals Association, Australia has only one decade of known oil resources at current production rates. Given the maturity of Australia’s oil-producing areas, according to the Australian Petroleum Production and Exploration Association, only the discovery of a significant new oil province can arrest the long-term decline in Australian oil production. Meanwhile, in 2011, Australians consumed just over 1 million bpd of crude oil and petroleum products. With growing economy and population, and relatively low priced fuel, this is the highest level on record. The result of this growing supply-demand gap is an increase in oil imports, which for the first time since 1970, make up more than half of the country’s overall oil demand. In fact, net-oil imports have increased from 12,000 bpd in 2000 to 519,000 bpd in 2011, the highest on record. Continued growth in domestic oil demand and declining domestic oil production are expected to result in a future increase in Australia’s oil imports. Given recent trends, the country’s self-sufficiency in crude oil and refined petroleum products is likely to drop from 48% in 2011 to approximately 20% by 2020.

Innocent bystander wrote on Jan 9^th, 2014 at 12:32am:

You can still provide a link, it just won't be clickable thats all  ;)

Sort of
As far as a link goes ... this is about  the best anyone under a 100 posts can do

ttp://theconversation.com/australias-growing-oil-imports-are-an-energy-security-issue-7749

Innocent bystander wrote on Jan 9^th, 2014 at 12:32am:

crocodile wrote on Jan 8th, 2014 at 10:15pm: Unfortunately, I still have 73 posts to go before I can add a link. You can still provide a link, it just won't be clickable thats all  ;)

I tried to but a message appears forbidding me so. Even tried to disguise it. Oh well 72 to go now. If I last that long

Calanen wrote on Jan 8^th, 2014 at 9:10pm:

Unfortunately the dollar does have to collapse. It's true value is about 75 c - 82.

No, it's true value is whatever people are willing to pay for it.

What you have quoted is a range that is desired by Australian businesses with export markets. It will come at a cost - petrol at $1.80 to $2.00 a litre.


Quote:

The bulk of the price of petrol comes from excise.

Excise on petrol is 38.145 cents per litre and has been for a decade. It's about 25% of the price at $1.60 a litre but it's not what I would call "the bulk of the price".

Armchair_Politician wrote on Jan 8^th, 2014 at 9:49pm:

adelcrow wrote on Jan 8th, 2014 at 6:52pm: With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred. What happened to Abbotts election promise of forcing down our cost of living? Were you born post Christmas 2012? That would explain your ignorance of the fact that petrol companies ALWAYS boost the price of petrol during peak periods such as Christmas, NYE, school holidays, etc. Got absolutely ZERO to do with Abbott. Good grief, you're a moron!  ::)

So does retail spending increase at Christmas every year but it doesn't stop threads being created that attribute this "miracle" to Abbott.  ::)

Bam wrote on Jan 9^th, 2014 at 8:19am:

Calanen wrote on Jan 8th, 2014 at 9:10pm: Unfortunately the dollar does have to collapse. It's true value is about 75 c - 82. No, it's true value is whatever people are willing to pay for it. What you have quoted is a range that is desired by Australian businesses with export markets. It will come at a cost - petrol at $1.80 to $2.00 a litre. Quote: The bulk of the price of petrol comes from excise. Excise on petrol is 38.145 cents per litre and has been for a decade. It's about 25% of the price at $1.60 a litre but it's not what I would call "the bulk of the price".

Parity pricing introduced in the '70s also affects the local pump price.

adelcrow wrote on Jan 8^th, 2014 at 6:52pm:

With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred. What happened to Abbotts election promise of forcing down our cost of living?

This has already been covered but maybe not so clearly. Abbott may not like the position of the Aussie dollar. However, while the RBA targets inflation via interest rate settings it is not possible to target the exchange rate at the same time. The notion that Abbott is devaluing the dollar is a load of tosh.

crocodile wrote on Jan 9^th, 2014 at 5:59am:

Innocent bystander wrote on Jan 9th, 2014 at 12:32am: crocodile wrote on Jan 8th, 2014 at 10:15pm: Unfortunately, I still have 73 posts to go before I can add a link. You can still provide a link, it just won't be clickable thats all  ;) I tried to but a message appears forbidding me so. Even tried to disguise it. Oh well 72 to go now. If I last that long

The only way to provide a link is to disable it by removing an h or w from the start of the link address ... at least that way it is a reasonably simple process for members to find what you're trying to link to.

Beside the links problem, not being able to include pics and graphs etc is a real pain ...  ::)

Let me put it this way, if the US & Europe were called Zimbabwe instead, then international markets would have no hesitation in confirming them (the US & Europe) as being Bankrupt & marking their currencies down to Junk status and therefore and you can also throw Japan in there as an equal to the US & Europe!

The logical outcome is that at some point these currencies will collapse (such is the cost of reckless Monetary Printing & a few other issues) & at that time the OZ$ will rise against them.

It should also be noted that their are consequences (BOTH WAYS), as our currency or any other currency, as it Declines &/or Rises.

As our currency Declines, some (particularly Exporters) will find it an advantage, whilst others (including  many Consumers) will find it a disadvantage, as it will send all imported items higher, as inflation rises.

For the foreseeable future, I would tend towards current or higher levels of the OZ$, as Mining markets (in particular as going to get badly hit, as the Chinese Economy and others,  wind down and a lowish OZ inflation rate stands a better chance of keeping our Economy in reasonable bounds, rather than a higher rate of inflation.    

perceptions_now wrote on Jan 9^th, 2014 at 1:37pm:

Let me put it this way, if the US & Europe were called Zimbabwe instead, then international markets would have no hesitation in confirming them (the US & Europe) as being Bankrupt & marking their currencies down to Junk status and therefore and you can also throw Japan in there as an equal to the US & Europe! The logical outcome is that at some point these currencies will collapse (such is the cost of reckless Monetary Printing & a few other issues) & at that time the OZ$ will rise against them. It should also be noted that their are consequences (BOTH WAYS), as our currency or any other currency, as it Declines &/or Rises. As our currency Declines, some (particularly Exporters) will find it an advantage, whilst others (including  many Consumers) will find it a disadvantage, as it will send all imported items higher, as inflation rises. For the foreseeable future, I would tend towards current or higher levels of the OZ$, as Mining markets (in particular as going to get badly hit, as the Chinese Economy and others,  wind down and a lowish OZ inflation rate stands a better chance of keeping our Economy in reasonable bounds, rather than a higher rate of inflation.

abit more research pls before you make comments about printing money

Maqqa wrote on Jan 9^th, 2014 at 1:41pm:

abit more research pls before you make comments about printing money

its obvious from your posts that you NEVER research anything, its a bit rich of you to ask other to do so isn't it Gumpy?

John Smith wrote on Jan 9^th, 2014 at 1:43pm:

Maqqa wrote on Jan 9th, 2014 at 1:41pm: abit more research pls before you make comments about printing money its obvious from your posts that you NEVER research anything, its a bit rich of you to ask other to do so isn't it Gumpy?

I concur JS, Maqqa is purely a Political party (Liberal) mouth piece!

In any event, if she disagrees with my assertions, then she should simply state why!

perceptions_now wrote on Jan 9^th, 2014 at 2:36pm:

John Smith wrote on Jan 9th, 2014 at 1:43pm: Maqqa wrote on Jan 9th, 2014 at 1:41pm: abit more research pls before you make comments about printing money its obvious from your posts that you NEVER research anything, its a bit rich of you to ask other to do so isn't it Gumpy? I concur JS, Maqqa is purely a Political party (Liberal) mouth piece! In any event, if she disagrees with my assertions, then she should simply state why!

Not a lot of research needed. It's clear by the US benchmark interest rate hovering around 0.25% as to what is going on. Obviously they are trying to re-inflate their economy. Equals print more dosh.

Europe has been subject to Austerity measures for a while now. Bond rates are very low so I would expect that the printing presses are off.

Haven't looked into the European markets for a while. It seems that bond yields are on the way up now and interest rates falling. Looks like austerity is being given the flick in some nations.

crocodile wrote on Jan 9^th, 2014 at 3:00pm:

perceptions_now wrote on Jan 9th, 2014 at 2:36pm: John Smith wrote on Jan 9th, 2014 at 1:43pm: Maqqa wrote on Jan 9th, 2014 at 1:41pm: abit more research pls before you make comments about printing money its obvious from your posts that you NEVER research anything, its a bit rich of you to ask other to do so isn't it Gumpy? I concur JS, Maqqa is purely a Political party (Liberal) mouth piece! In any event, if she disagrees with my assertions, then she should simply state why! Not a lot of research needed. It's clear by the US benchmark interest rate hovering around 0.25% as to what is going on. Obviously they are trying to re-inflate their economy. Equals print more dosh. Europe has been subject to Austerity measures for a while now. Bond rates are very low so I would expect that the printing presses are off.

crocodile wrote on Jan 9^th, 2014 at 3:48pm:

Haven't looked into the European markets for a while. It seems that bond yields are on the way up now and interest rates falling. Looks like austerity is being given the flick in some nations.

I would suggest that after a great deal of "activity", from both Governments & Central Banks, actual Economic activity in the USA, Europe & Japan has not matched either the Rhetoric or other inputs!

As I have said previously, this time is different and neither Economic activity, nor Debt, will not respond to the usual manner, to the usual fixes!   

perceptions_now wrote on Jan 9^th, 2014 at 8:42pm:

crocodile wrote on Jan 9th, 2014 at 3:00pm: perceptions_now wrote on Jan 9th, 2014 at 2:36pm: John Smith wrote on Jan 9th, 2014 at 1:43pm: Maqqa wrote on Jan 9th, 2014 at 1:41pm: abit more research pls before you make comments about printing money its obvious from your posts that you NEVER research anything, its a bit rich of you to ask other to do so isn't it Gumpy? I concur JS, Maqqa is purely a Political party (Liberal) mouth piece! In any event, if she disagrees with my assertions, then she should simply state why! Not a lot of research needed. It's clear by the US benchmark interest rate hovering around 0.25% as to what is going on. Obviously they are trying to re-inflate their economy. Equals print more dosh. Europe has been subject to Austerity measures for a while now. Bond rates are very low so I would expect that the printing presses are off. crocodile wrote on Jan 9th, 2014 at 3:48pm: Haven't looked into the European markets for a while. It seems that bond yields are on the way up now and interest rates falling. Looks like austerity is being given the flick in some nations. I would suggest that after a great deal of "activity", from both Governments & Central Banks, actual Economic activity in the USA, Europe & Japan has not matched either the Rhetoric or other inputs! As I have said previously, this time is different and neither Economic activity, nor Debt, will not respond to the usual manner, to the usual fixes!

As usual, Maqqa has no Logical answers, to the why!

crocodile wrote on Jan 9^th, 2014 at 5:59am:

Innocent bystander wrote on Jan 9th, 2014 at 12:32am: crocodile wrote on Jan 8th, 2014 at 10:15pm: Unfortunately, I still have 73 posts to go before I can add a link. You can still provide a link, it just won't be clickable thats all  ;) I tried to but a message appears forbidding me so. Even tried to disguise it. Oh well 72 to go now. If I last that long

Don't use the insert buttons, just copy and paste it as plain text.

http://au.yahoo.com/

adelcrow wrote on Jan 8^th, 2014 at 6:52pm:

With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred. What happened to Abbotts election promise of forcing down our cost of living?

Abbott wins the Ashes!!

adelcrow wrote on Jan 8^th, 2014 at 6:52pm:

With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred. What happened to Abbotts election promise of forcing down our cost of living?

who originally floated the Dollar?

when the Dollar went up under Labor why didn't they force the fuel companies to lower the fuel costs as they should have?

is the floating dollar a good idea?

is it better to have a lower dollar so that we can increase out exports and create more jobs?

is it better to have a higher dollar that will push jobs over seas just so that you can save a few cents on fuel?

do you even have one clue as to how our economy works?

True Blue... wrote on Jan 11^th, 2014 at 10:36am:

adelcrow wrote on Jan 8th, 2014 at 6:52pm: With Abbotts obsession with dragging down the Aussie dollar the inevitable surge in petrol prices has occurred. What happened to Abbotts election promise of forcing down our cost of living? who originally floated the Dollar? when the Dollar went up under Labor why didn't they force the fuel companies to lower the fuel costs as they should have? is the floating dollar a good idea? is it better to have a lower dollar so that we can increase out exports and create more jobs? is it better to have a higher dollar that will push jobs over seas just so that you can save a few cents on fuel? do you even have one clue as to how our economy works?

I re-post the following, as it is relevant.

perceptions_now wrote on Jan 9^th, 2014 at 1:37pm:

Let me put it this way, if the US & Europe were called Zimbabwe instead, then international markets would have no hesitation in confirming them (the US & Europe) as being Bankrupt & marking their currencies down to Junk status and therefore and you can also throw Japan in there as an equal to the US & Europe! The logical outcome is that at some point these currencies will collapse (such is the cost of reckless Monetary Printing & a few other issues) & at that time the OZ$ will rise against them. It should also be noted that their are consequences (BOTH WAYS), as our currency or any other currency, as it Declines &/or Rises. As our currency Declines, some (particularly Exporters) will find it an advantage, whilst others (including  many Consumers) will find it a disadvantage, as it will send all imported items higher, as inflation rises. For the foreseeable future, I would tend towards current or higher levels of the OZ$, as Mining markets (in particular as going to get badly hit, as the Chinese Economy and others,  wind down and a lowish OZ inflation rate stands a better chance of keeping our Economy in reasonable bounds, rather than a higher rate of inflation.

In addition, floating of currencies is a good idea & it would be even better IF such floats were real & not influenced by various government/s & Central Bank/s manipulations?

So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar

adelcrow wrote on Jan 11^th, 2014 at 11:12am:

So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar

OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time.

crocodile wrote on Jan 11^th, 2014 at 10:23pm:

adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time.

OK sunshine, you keep banging on about this. How about you put up or shut up. It's not a complicated question.

crocodile wrote on Jan 11^th, 2014 at 10:23pm:

adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time.

So you are saying that when Abbott promised to keep the cost of living down he was lying?

Dnarever wrote on Jan 13^th, 2014 at 7:40am:

crocodile wrote on Jan 11th, 2014 at 10:23pm: adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time. So you are saying that when Abbott promised to keep the cost of living down he was lying?

I don't know if that is directed towards me or not. I've made no assertions regarding the truthfulness of Tony Abbott. Adelcrow makes the claim that Abbott has been forcing the value of the Aussie dollar down. It's horseshit so I'm calling him out to explain to us all just how he is doing this.

crocodile wrote on Jan 11^th, 2014 at 10:23pm:

adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time.

You're focusing too much on the "Abbott" cause here. You're ignoring an important point:

adelcrow wrote on Jan 11^th, 2014 at 11:12am:

Economists are now predicting $2 a litre petrol by the end of the year

Does this claim have anything to support it? If the Australian dollar reaches US 75c, I think $1.90 is closer to the mark but $2 is plausible. I would like to see some supporting evidence. Which economists have predicted this? Any links?

Bam wrote on Jan 13^th, 2014 at 8:51am:

crocodile wrote on Jan 11th, 2014 at 10:23pm: adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time. You're focusing too much on the "Abbott" cause here. You're ignoring an important point: adelcrow wrote on Jan 11th, 2014 at 11:12am: Economists are now predicting $2 a litre petrol by the end of the year Does this claim have anything to support it? If the Australian dollar reaches US 75c, I think $1.90 is closer to the mark but $2 is plausible. I would like to see some supporting evidence. Which economists have predicted this? Any links?

Hi Bam, I don't believe that I'm focusing too much on the "Abbott" angle. After all, the title of the thread is "Abbott responsible for high petrol prices".

Firstly, way back in the '70s, Fraser introduced parity pricing which effectively set the price of fuel to the spot world price, regardless of whether it was imported or produced locally. Our local fuel price is very much tied to the Singapore regional price as a result.

Visit the AIP web site and it is well described

Secondly, the ridiculous assertion that Tony Abbott is forcing down the value of the currency has been made. Way back in the '90s, after the recession we had to have, Keating transferred monetary policy arrangements to the Reserve Bank. This was further enshrined in legislation by Peter Costello. Today, the RBA targets interests rates, not the exchange rate. So the question remains, how is Abbott manipulating the currency value when he does not even control it.

Thirdly, it has already been discussed on this thread that oil production worldwide is slightly down towards the end of last year. There has also been a mercilessly cold northern hemisphere winter, increasing the demand for fuel. Shortened supply + increased demand can only lead to price rises.

The original post is full of horseshit.

Bam wrote on Jan 13^th, 2014 at 8:51am:

crocodile wrote on Jan 11th, 2014 at 10:23pm: adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time. You're focusing too much on the "Abbott" cause here. You're ignoring an important point: adelcrow wrote on Jan 11th, 2014 at 11:12am: Economists are now predicting $2 a litre petrol by the end of the year Does this claim have anything to support it? If the Australian dollar reaches US 75c, I think $1.90 is closer to the mark but $2 is plausible. I would like to see some supporting evidence. Which economists have predicted this? Any links?

Don't panic!!!
(from a fave book)
The Fuel Watch Commissioner will save us...  or do what he usually does say the rise is justified.

crocodile wrote on Jan 13^th, 2014 at 10:03am:

Bam wrote on Jan 13th, 2014 at 8:51am: crocodile wrote on Jan 11th, 2014 at 10:23pm: adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time. You're focusing too much on the "Abbott" cause here. You're ignoring an important point: adelcrow wrote on Jan 11th, 2014 at 11:12am: Economists are now predicting $2 a litre petrol by the end of the year Does this claim have anything to support it? If the Australian dollar reaches US 75c, I think $1.90 is closer to the mark but $2 is plausible. I would like to see some supporting evidence. Which economists have predicted this? Any links? Hi Bam, I don't believe that I'm focusing too much on the "Abbott" angle. After all, the title of the thread is "Abbott responsible for high petrol prices".

Not unreasonable. Nor is it unreasonable to ask for evidence.


Quote:

Firstly, way back in the '70s, Fraser introduced parity pricing which effectively set the price of fuel to the spot world price, regardless of whether it was imported or produced locally. Our local fuel price is very much tied to the Singapore regional price as a result. Visit the AIP web site and it is well described

Considering that we are importing a lot more fuel these days, not unreasonable.


Quote:

Secondly, the ridiculous assertion that Tony Abbott is forcing down the value of the currency has been made. Way back in the '90s, after the recession we had to have, Keating transferred monetary policy arrangements to the Reserve Bank. This was further enshrined in legislation by Peter Costello. Today, the RBA targets interests rates, not the exchange rate. So the question remains, how is Abbott manipulating the currency value when he does not even control it.

It's not ridiculous, actually. One of the first things that Treasurer Hockey did was give the RBA 8 billion dollars to "tackle currency strength". In other words, give the RBA the funds it needs to intervene in foreign exchange markets and lower the value of the Australian dollar.

Granted, it's the RBA doing this, but Hockey gave them the funds to do so.


Quote:

Thirdly, it has already been discussed on this thread that oil production worldwide is slightly down towards the end of last year. There has also been a mercilessly cold northern hemisphere winter, increasing the demand for fuel. Shortened supply + increased demand can only lead to price rises. The original post is full of horseshit.

I have asked for some more information to follow up the claims. I don't think petrol will reach $2.00 a litre this year, but we may get as close as $1.90 per litre if the Australian dollar falls as far this year as it did last year.

ALL government are responsible for high petrol and all other prices - for example electricity with  'privatisation' and gs with exporting for Clive and the cost for us going up.

Petrol:-

a)  The government sets the 'international standard' by which we buy petroleum - i.e. - it sets the price (great capitalism there, BTW - who mentioned socialism again?).  We are tied and have been for a long time to the Singapore price - a country that bears as much relationship to Australian distance and travel etc as Sweden does in the social scientist sphere, and which has a high price (well, blow me down - I would NEVER have known that) and produces ZERO petroleum, whereas Oz produces 90% odd of its own.

b)  Government is all  :) :) :) when the price of petroleum goes up  because they get and set a PERCENTAGE of the take - which means that with each price rise they get more.

This also applies at the State level on a lesser scale, but is common across many taxes, most notably GST - which has become the ravening monster predicted when it was first brought in and has raised the cost of living massively more than 10% due to the flow-on effect of it on costs associated with moving goods affected by it - and on petroleum products particularly in a country which is all wide open spaces.

THOSE WHO INSTALLED THIS  MONSTER WERE WELL AWARE THIS WOULD HAPPEN.  Just another way of gutting Jo and Joe Bloggstrom.

Bam wrote on Jan 13^th, 2014 at 4:05pm:

crocodile wrote on Jan 13th, 2014 at 10:03am: Bam wrote on Jan 13th, 2014 at 8:51am: crocodile wrote on Jan 11th, 2014 at 10:23pm: adelcrow wrote on Jan 11th, 2014 at 11:12am: So much for a lower cost of living under an Abbott government..Economists are now predicting $2 a litre petrol by the end of the year thanks to Abbott artifically forcing down the Aussie dollar OK Adelcrow, I give up explaining why Abbott has not caused a drop in the Aussie dollar. Perhaps you can enlighten us once and for all and explain how the central bank can target the exchange rate AND the interest rate at the same time. You're focusing too much on the "Abbott" cause here. You're ignoring an important point: adelcrow wrote on Jan 11th, 2014 at 11:12am: Economists are now predicting $2 a litre petrol by the end of the year Does this claim have anything to support it? If the Australian dollar reaches US 75c, I think $1.90 is closer to the mark but $2 is plausible. I would like to see some supporting evidence. Which economists have predicted this? Any links? Hi Bam, I don't believe that I'm focusing too much on the "Abbott" angle. After all, the title of the thread is "Abbott responsible for high petrol prices". Not unreasonable. Nor is it unreasonable to ask for evidence. Quote: Firstly, way back in the '70s, Fraser introduced parity pricing which effectively set the price of fuel to the spot world price, regardless of whether it was imported or produced locally. Our local fuel price is very much tied to the Singapore regional price as a result. Visit the AIP web site and it is well described Considering that we are importing a lot more fuel these days, not unreasonable. [quote]Secondly, the ridiculous assertion that Tony Abbott is forcing down the value of the currency has been made. Way back in the '90s, after the recession we had to have, Keating transferred monetary policy arrangements to the Reserve Bank. This was further enshrined in legislation by Peter Costello. Today, the RBA targets interests rates, not the exchange rate. So the question remains, how is Abbott manipulating the currency value when he does not even control it.

It's not ridiculous, actually. One of the first things that Treasurer Hockey did was give the RBA 8 billion dollars to "tackle currency strength". In other words, give the RBA the funds it needs to intervene in foreign exchange markets and lower the value of the Australian dollar.

Granted, it's the RBA doing this, but Hockey gave them the funds to do so.


Quote:

Thirdly, it has already been discussed on this thread that oil production worldwide is slightly down towards the end of last year. There has also been a mercilessly cold northern hemisphere winter, increasing the demand for fuel. Shortened supply + increased demand can only lead to price rises. The original post is full of horseshit.

I have asked for some more information to follow up the claims. I don't think petrol will reach $2.00 a litre this year, but we may get as close as $1.90 per litre if the Australian dollar falls as far this year as it did last year.
[/quote]

Must be wonderful to be a past politician in this country right now, sitting down to your lobster and caviar and fine champagne dinner - and realising that you are one of the world's greatest failures and there are millions out there - YOUR people - eating mince and spuds for dinner - if they can get it.

I'm surprised they are not all hanging their heads in shame instead of pontificating on non-events like 'financial literacy for women in Botswana' and fancy-dancing on national television and in visiting seats at universities as 'elder statesmen'.

No wonder academia is a nightmare journey to the fart of the Australian dream these days.

Catch-phrase for the day:-

"Teach a Botswanan to fish, and she can eat all day every day!  Teach her financial literacy and she can become an internet scammer and retire rich!"

Thanks Bam for your considered input. Much appreciated. I don't read the 8.8 billion capital injection the same way. i.e. as a tool to stomp on the dollar. It seems to me to be more likely that the RBA capital fund is very low at the moment. The RBA performs open market operations on a daily basis to manage the interest rate target. If rates move against them and the purchase of financial instruments and foreign currency is required it would be difficult without funds.

On a more cynical note, Avuncular Joe may be gambling on the devaluation of the dollar as the US dollar gains strength ( If it continues that is ). The RBA could make a tidy profit by purchasing financial assets in foreign currency, wait for the dollar to dip and then sell.

Sir Grappler Truth Teller OAM wrote on Jan 13^th, 2014 at 5:14pm:

ALL government are responsible for high petrol and all other prices - for example electricity with  'privatisation' and gs with exporting for Clive and the cost for us going up. Petrol:- a)  The government sets the 'international standard' by which we buy petroleum - i.e. - it sets the price (great capitalism there, BTW - who mentioned socialism again?).  We are tied and have been for a long time to the Singapore price - a country that bears as much relationship to Australian distance and travel etc as Sweden does in the social scientist sphere, and which has a high price (well, blow me down - I would NEVER have known that) and produces ZERO petroleum, whereas Oz produces 90% odd of its own. b)  Government is all  :) :) :) when the price of petroleum goes up  because they get and set a PERCENTAGE of the take - which means that with each price rise they get more. This also applies at the State level on a lesser scale, but is common across many taxes, most notably GST - which has become the ravening monster predicted when it was first brought in and has raised the cost of living massively more than 10% due to the flow-on effect of it on costs associated with moving goods affected by it - and on petroleum products particularly in a country which is all wide open spaces. THOSE WHO INSTALLED THIS  MONSTER WERE WELL AWARE THIS WOULD HAPPEN.  Just another way of gutting Jo and Joe Bloggstrom.

Parity pricing is not all bad. Without it our local producers would have no incentive to supply the local market. They would simply sell their product where the prices are higher.