Have Petrol Prices Gone Too Far????

[dj tima]

The price of petrol now is just ridiculous(well thats what I think). But I ain't the smartest person in the world so could someone tell me if their is a reason for this???? question  

[WellzY]

• China - And India to a lesser extent, are in a massive process of modernisation, and development. They're both 3rd World Countries, but they're slowly coming out of this. This means more people want to live like us, and living like us is not cheap, and part of living like us is having cars. And let's admit, they're pretty useful. So China wants it's oil. Demand increases, so companies can charge more for their oil.
  
• Reserves - Oil has been mined heavily now for the last 50 or so years, but it's a non-renewable energy source, and supplies are slowly dwindling. So couple that with Chinese demand, and you've got yourself some hefty oil prices my friend.
  
• Growth - Economies like to 'grow'. By that, they like to make the same about of money they did last year, with a little bit extra where-ever possible. Money is produced in essence from primary recoursed, but along that chain of produce, a lot of it is driven by oil, because is not only refined into petrol, but other usefull petro-chemicals, mainly plastics. So each year, people want more and more.
  
• Political Instability - The regions with the most oil, also happen to be the most unstable in a political sense. I mean, just look at Israel and Jordan at the moment. They're not two very large oil producers, but they're right next door to countries that are. When an area is less stable, people fear lack of supply from such regions, and prefer to get as much as they can whenever they can. More demands.
  
• Greed - And yes, pretrol companies like to make monies to, so they can increase prices. Be it at the distribution cenre, at refinement, or even at the pump.

It's all sooooo much more complex than that though, it's just a simple over-view. sweatdrop  

[dj tima]

WellzY

• China - And India to a lesser extent, are in a massive process of modernisation, and development. They're both 3rd World Countries, but they're slowly coming out of this. This means more people want to live like us, and living like us is not cheap, and part of living like us is having cars. And let's admit, they're pretty useful. So China wants it's oil. Demand increases, so companies can charge more for their oil.
  
• Reserves - Oil has been mined heavily now for the last 50 or so years, but it's a non-renewable energy source, and supplies are slowly dwindling. So couple that with Chinese demand, and you've got yourself some hefty oil prices my friend.
  
• Growth - Economies like to 'grow'. By that, they like to make the same about of money they did last year, with a little bit extra where-ever possible. Money is produced in essence from primary recoursed, but along that chain of produce, a lot of it is driven by oil, because is not only refined into petrol, but other usefull petro-chemicals, mainly plastics. So each year, people want more and more.
  
• Political Instability - The regions with the most oil, also happen to be the most unstable in a political sense. I mean, just look at Israel and Jordan at the moment. They're not two very large oil producers, but they're right next door to countries that are. When an area is less stable, people fear lack of supply from such regions, and prefer to get as much as they can whenever they can. More demands.
  
• Greed - And yes, pretrol companies like to make monies to, so they can increase prices. Be it at the distribution cenre, at refinement, or even at the pump.

It's all sooooo much more complex than that though, it's just a simple over-view. sweatdrop

Thanks for all the informantion biggrin  

[dj tima]

Can anyone else top that off????  

[dj tima]

Btw I live in NSW is it around the same price in other places around Australia??? Please tell me.  

[WellzY]

$1.40 a litre in Melbourne?  

[DNA_Guru]

$1.22 in Queensland.  

[dj tima]

WellzY

$1.40 a litre in Melbourne?

yeah we're pretty much the same in sydney.  

[nrasjaa]

its good that petrol prices are up!!

keeps teh men at home 3nodding  

[dj tima]

nrasjaa

its good that petrol prices are up!!

keeps teh men at home 3nodding

dats a very interestin way 2 look at it.  

[Ros!e]

You can say all those other reasons wellzy wrote.
All are valid and all good.
But it's the government taxes and greed more than anything..
It's some ridiculous percentage of the profit that the government takes.
I think it was something like, they end up keeping about 1 cent per litre. neutral
Don't know if it's true, but a friend who works in management of a service station told me that.
And here.. about A dollar 20 or something.
Not sure.
I don't have to fill up too often, I'm lucky, my car runs on the smell of an oily rag =3  

[P.R.I.N.C.3.S.5]

That's why now the government are giving money for gas converision, changing the thingy in your car.  

[nrasjaa]

dj tima

nrasjaa

its good that petrol prices are up!!

keeps teh men at home 3nodding

dats a very interestin way 2 look at it.

yus cuz then they spend less time with the car and more time with you!! *is surrounded by car obessed men*  

[dj tima]

can som1 tell me wot da prices r around in WA, TAS, NT, SA?????  

[DNA_Guru]

o_o

Look, Governments take taxes for a reason, it's for the upkeep of a nation, if they didn't do it at the pump they'd do it somewhere else. Think of it as an equilibrium. You can't take out tax somewhere without it going somewhere else. Say we get a tax deduction on our wages, hooray, but then prices go up at the pump and people wonder why.
My Theory, a bit cynical for sure, but essentially that's the way it works.