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| Thread ID: 150522 | 2022-03-10 19:22:00 | Did anyone think it was strange ......... | kenj (9738) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1484863 | 2022-03-11 04:23:00 | Petrol prices never made any sense to me anyway, the petrol in the tanks in the ground has already cost whatever it cost surely and yet the price will go up and down while it's still the same fuel being sold. That's what I've never got my head around. If petrol goes up today, is that because Brent Crude went up overnight? But aren't I buying petrol that was paid for 3 months ago when it may have been US10.00 cheaper a barrel? |
allblack (6574) | ||
| 1484864 | 2022-03-11 04:24:00 | YES! Ken ;) |
kenj (9738) | ||
| 1484865 | 2022-03-11 05:35:00 | That's what I've never got my head around. If petrol goes up today, is that because Brent Crude went up overnight? But aren't I buying petrol that was paid for 3 months ago when it may have been US10.00 cheaper a barrel? I was actually googling that the other day, came across this on Z's website: z.co.nz How do you justify putting the price up for fuel because of what’s happening overseas when there’s fuel that’s sitting in your tanks already! You would have bought it for way cheaper ages ago. Most fuel companies operating in the global North, Z included, operate on what's called "current cost" or “replacement cost” pricing. This means that the base cost for our fuel (before the other elements that we need to include such as freight and refining) is reflective of what it would cost to purchase at the same time we sold it. In effect, this equates to how much would it cost us to replace the fuel/oil we just sold at this moment in time. Explained another way, it's sort of like how a house's value is reflective of the price it would fetch on the market if it was put up for sale today, not how much it cost to originally buy the house. Why is petrol cheaper in Australia? Long story short - they pay less tax. They pay a slightly higher car registration tax but much lower taxes at the pump. Australia also has a much larger market which means more volume, which means they can buy cheaper in bulk. But the real reason is that they pay a lot less fuel tax than Kiwis do at the pump. Why are you slow at reducing your price but fast at increasing it? It might seem like that's the case, but it really isn't. You don’t have to just take our word for it. The NZ Institute of Economic Research has done some research on New Zealand fuel price movements. Their research concludes that while people often think fuel companies are quick to raise prices but slow to lower them, the price at the pump go up and down at roughly the same speed in reality. You can read their full report online. While we’re in business to make money, we’re not in business to make money at the undue expense of customers. Haven't bothered to read the report yet, not sure if I believe what they're saying or not but it's food for thought. |
baabits (15242) | ||
| 1484866 | 2022-03-11 05:45:00 | Hmmm.....interesting. Just because all the fuel companies use "current/replacement cost" doesn't mean it ain't dodgy. I'm not sure the house analogy is relevant to fuel costing. |
allblack (6574) | ||
| 1484867 | 2022-03-11 19:24:00 | Because they can. So they do. | Agent_24 (57) | ||
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