Australian Politics Forum - Oil prices hitting record high

Andrei.Hicks

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Re: Oil prices hitting record high - ULP up to $1.55 !
Reply #15 - Mar 25^th, 2011 at 8:40am

Sir lastnail wrote on Mar 25^th, 2011 at 8:27am:

Andrei.Hicks wrote on Mar 24^th, 2011 at 12:22pm:

Sir lastnail wrote on Mar 24^th, 2011 at 11:33am:

LOL

how come it has BP, Shell etc written all over it in big letters ?? ??

You do know what a franchise is right?
Hopefully not, as that would at least explain that absurd question.

Yes Hicks a franchise in the fossil fool industry means that you have to bend over and sell lots of lollies to make up the shortfall !! What a joke that industry is Sad

Mate a franchise is where the owner buys the rights to sell a product and enters into an agreement with the company who provide it.

The forecourt owner is given a recommended retail price, he is given a set cost and he is given a set of targets to achieve to roll the franchise over into the next agreement.

The franchise owners are very successful actually. In our company, last figures I saw was that there is a 1 year waiting list in Australia to own our forecourt franchises.

Out of your litre of petrol the oil company takes about 5-6 cents of that in profit, the forecourt owner takes about 2-3 cents profit, the Australian Government takes almost 60 cents in profit and the rest is logistical and upstream delivery related.

That is how it works and it works well.

I don't know why you are so angry about oil companies all the time.

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Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde

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it_is_the_light Gold Member Offline Christ Light Posts: 41432 The Pyramid of LIGHT Gender:	Re: Oil prices hitting record high - ULP up to $1.55 ! Reply #16 - Mar 25^th, 2011 at 9:05am what did i say last year? $2.50 at least fuel will be this year keep laughing... with forgiveness for those that do not see namaste -:)
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It_is_the_Darkness Gold Member Offline Australian Politics Posts: 4000 in a ReTardis Gender:	Re: Oil prices hitting record high - ULP up to $1.55 ! Reply #17 - Mar 25^th, 2011 at 9:32am definately $2 by the end of the year. I was a bit surprised by the 'downturn' a while back that brought the Inflation back down to earth. Because I predicted petrol would be $10 within 10 years, 3 months before the CSIRO predicted $8 within 10 years. ...well 10 years ain't up yet.
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perceptions_now

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Re: Oil prices hitting record high - ULP up to $1.55 !
Reply #18 - Mar 25^th, 2011 at 11:23am

Sir lastnail wrote on Mar 25^th, 2011 at 8:28am:

perceptions_now wrote on Mar 24^th, 2011 at 11:50am:

Andrei.Hicks wrote on Mar 24^th, 2011 at 11:00am:

Team Froggie wrote on Mar 24^th, 2011 at 10:56am:

Andrei.Hicks wrote on Mar 24^th, 2011 at 10:52am:

Therefore because the price of a barrel of oil goes up, it doesn't have an immediate pricing pressure on the cost of a liter of petrol.

So you are saying that we are being ripped off by the oil companies/retailers??

Cheesy

I don't think 'ripped off' is fair.
There is an element of increased margin in the lag time yes.

Bear in mind though petroleum companies only take about 8-10c in profit on the liter of petrol in Australia.

In OZ, the suggestion is there is usually a couple of weeks delay, between the Oil price movement (up or down) and the adjustment in the Price of petrol at the pump.

Given that Oil was at the current price rane a month ago & then dropped to $96 a barrel a couple of weeks back, that would suggest the pump price SHOULD ALREADY BE REFLECTING THAT LOWER OIL PRICE ALREADY & DO SO FOR THE NEXT WEEK OR TWO.

Any bets, on reality?

However, of greater interest, is considering that Oil was $147 (WTi) a barrel in July 2008, when the US OZ exchange rate was 0.96c, the pump price was around a $1.60 here.

Now, we have a barrel of Oil at around $105, the exchange rate is around 1.00-1.101 and the Petrol Price at the pump is hovering around $1.45-$1.50.

Given the then & now parameters and that the Petrol tax/excise is no different, WHY is the current Petrol Price not lower?

Yes Hicks, care to explain that anomaly ??

The dollar goes up and we still get screwed. You just can't win with these crooks Sad

No ideas, Andrei?

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Andrei.Hicks Gold Member Offline Australian Politics Posts: 23818 Carlsbad, CA Gender:	Re: Oil prices hitting record high - ULP up to $1.55 ! Reply #19 - Mar 25^th, 2011 at 11:34am Yes, it's local (regional) supply of the Singapore price based oil. Plus other considerations of OpEx costs worked in.
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Sir lastnail

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Re: Oil prices hitting record high - ULP up to $1.55 !
Reply #20 - Mar 25^th, 2011 at 11:46am

Andrei.Hicks wrote on Mar 25^th, 2011 at 8:40am:

Sir lastnail wrote on Mar 25^th, 2011 at 8:27am:

Andrei.Hicks wrote on Mar 24^th, 2011 at 12:22pm:

Sir lastnail wrote on Mar 24^th, 2011 at 11:33am:

LOL

how come it has BP, Shell etc written all over it in big letters ?? ??

You do know what a franchise is right?
Hopefully not, as that would at least explain that absurd question.

Yes Hicks a franchise in the fossil fool industry means that you have to bend over and sell lots of lollies to make up the shortfall !! What a joke that industry is Sad

Mate a franchise is where the owner buys the rights to sell a product and enters into an agreement with the company who provide it.

The forecourt owner is given a recommended retail price, he is given a set cost and he is given a set of targets to achieve to roll the franchise over into the next agreement.

The franchise owners are very successful actually. In our company, last figures I saw was that there is a 1 year waiting list in Australia to own our forecourt franchises.

Out of your litre of petrol the oil company takes about 5-6 cents of that in profit, the forecourt owner takes about 2-3 cents profit, the Australian Government takes almost 60 cents in profit and the rest is logistical and upstream delivery related.

That is how it works and it works well.

I don't know why you are so angry about oil companies all the time.

Are you kidding !!

Name one small business that survives on a 1-2% profit margin ??

No wonder they have to try and flog you lollies every time you pay for your petrol because it's a scam Sad

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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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Andrei.Hicks

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Re: Oil prices hitting record high - ULP up to $1.55 !
Reply #21 - Mar 25^th, 2011 at 12:16pm

Profit margins on that particular unleaded product yes.

And many people operate on that.

Like I told you, across Australia the potential franchise wait list for our forecourts is over 12 months long.
Our ASPAC VP presented the potential franchise list by country only in December - ANZ was 14 months.

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Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde

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Sir lastnail

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Re: Oil prices hitting record high - ULP up to $1.55 !
Reply #22 - Mar 25^th, 2011 at 12:23pm

Andrei.Hicks wrote on Mar 25^th, 2011 at 12:16pm:

Profit margins on that particular unleaded product yes.

And many people operate on that.

Like I told you, across Australia the potential franchise wait list for our forecourts is over 12 months long.
Our ASPAC VP presented the potential franchise list by country only in December - ANZ was 14 months.

Wait till EV's become popular. Nobody will want your franchises Wink

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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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perceptions_now

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Re: Oil prices hitting record high - ULP up to $1.55 !
Reply #23 - Mar 25^th, 2011 at 12:30pm

Andrei.Hicks wrote on Mar 25^th, 2011 at 11:34am:

Yes, it's local (regional) supply of the Singapore price based oil.

Plus other considerations of OpEx costs worked in.

Which means what?

Yes, we purchase via Singapore, but how would that affect the following?

It seems likely that our pump price will shortly exceed the 2008 Pump Price Peak, even though our US$ exchange rate will be higher (which is what Oil is purchased with) and the Price of a Barrel of Oil will still be lower than the Oil Price Peak at 2008???

What OPerational EXpenses at you referring to? Or, could it be OpPro you have in mind?

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Sir lastnail

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Re: Oil prices hitting record high - ULP up to $1.55 !
Reply #24 - Mar 25^th, 2011 at 1:00pm

perceptions_now wrote on Mar 25^th, 2011 at 12:30pm:

Andrei.Hicks wrote on Mar 25^th, 2011 at 11:34am:

Yes, it's local (regional) supply of the Singapore price based oil.

Plus other considerations of OpEx costs worked in.

Which means what?

Yes, we purchase via Singapore, but how would that affect the following?

It seems likely that our pump price will shortly exceed the 2008 Pump Price Peak, even though our US$ exchange rate will be higher (which is what Oil is purchased with) and the Price of a Barrel of Oil will still be lower than the Oil Price Peak at 2008???

What OPerational EXpenses at you referring to? Or, could it be OpPro you have in mind?

the operating cost where the CEO oil maggot orders a new 50 million dollar yacht !!

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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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