$1.60 per litre WTF????

[REV-IT]

Woke up to the news this morning and hearing that the ULP will hit $1.60 per litre within the fortnight :bash: If that's true the PULP will hit minimum of $1.70 per litre. I cover between 45k - 50k per year, so otherwords, my least of worries ATM are the potential morgate rate rises for they will be peanuts in comparison to running my car :mad:
Spoke to Frankston APS and they reckon it will be around 6 more months before it will be possible to convert my LS1 into LPG. Ever since I bought my new SV8 in February my fuel bill has gone up by staggering 40% :eek: So, what I want to know is how do you guys do it? If this $1.60 per litre is true, does it mean that we'll have to give up our sporting passion???

[team illucid]

cut back on pizza, beer, smokes, coke, or whatever crap you buy but dont have to ... it is only a couple of extra dollars a week - quite easy to change habits to support doing something you enjoy :)

[BlackClubbie]

So, what I want to know is how do you guys do it? If this $1.60 per litre is true, does it mean that we'll have to give up our sporting passion???

I have installed this little plates-rotating system on the clubbie, before entering the servo, i switch a button that then electrically turns the plates around so they show a different number, then i fill her up and do a runner. I'm also thinking of modifying the panels with a liquid crystals coating that can change colour.

[OzJavelin]

The govt CANNOT continue to sit on their hands and deny responsibility for this. The economy will fail. They must for the immediate future keep fuel prices within "reach" of ordinary Australians until a viable alternative is found .. $1.70/L is streching the term "within reach"

Yep, the mortage rate increases is looking nothing like the net cost of fuel increases ..

[clarky]

If this new hurricane smashes into Texas as anticipated the prices will go up to $80 US a barrell thats the prediction.

No doubt $1.60 within a fortnight is a big possibility, not good for all us LS1 owners. Where will it end? You would think the government would cut some taxes in the interim until the prices stable out again. Most ordinary Ozzies cant afford $1.60 per litre, crazy crazy stuff.

[OzJavelin]

cut back on pizza, beer, smokes, coke, or whatever crap you buy but dont have to ... it is only a couple of extra dollars a week - quite easy to change habits to support doing something you enjoy :)
Yep .. we are all going to start doing stuff like this so a lot of business are going to fail ..

[BlackClubbie]

The solution :

Start drilling for oil in the great barrier reef.

It would be sad, but that's what might happen.... oh and they would probably export it, so aussies wouldn't see the colour of it and we'd still buying from the arabs at the same price...

[REV-IT]

The difference between last February and the potential $1.60 cpl is $3654 pa. That's a lot of coke :confused: (of course it depends on what sort of coke we are referring to)

[clarky]

I agree start drilling bass strait its full of oil, but they want to keep it in reserve and use overseas supplies first, but the government cannot continue to do nothing. It has flow on affects, people who deliver goods etc their prices go up, cabs, bus system, deliveries to supermarkets all go up, and who pays for it yes you guessed it the consumer.

I agree with rev-it, you need to cut back on alot of coke, to make up the difference, its going up 10c a week in some cases, and believe you me it will be $1.60+ within 2 weeks. I aint holding my breath for the government to step in, although mind you the state governments get all the GST benefits.

Even to fill my girlfriends 4 cylinder corolla is getting crazy let alone the LS1.

I am putting in around $100 per week now as it is. Crazy

[BlackClubbie]

I used to go jetskiing a bit recently down on the beach where i live, still it was $70 bucks for half an hour of fun, now it's $80 because of the bloody petrol they burn.

[SS_Fury]

Drill the Barrier Reef? Man, u dont need anymore 'coke' by the sounds :lol:

Yep we are all screwed...im fortunate i dont have to drive far to work or anything, i do sympathise with those who do long kays or depend on fuel as part of their employment. The government aint gonna do much, according to them its 'out of their hands'.... :bash:

[seldo]

The difference between last February and the potential $1.60 cpl is $3654 pa. That's a lot of coke :confused: (of course it depends on what sort of coke we are referring to)
If you do 20,000km/yr you'll use 3000 litres per year @15l/100km. So that the difference between $1.00/litre and $1.60/l is $3000 / $4800 pa. So that's $1800pa or $34.61 / week. Don't know what set of numbers you used...

[Veeate]

I started my lease back in 2002 for the clubbie. As at last lease statement i am approx $4000 over budget on petrol ! FARK. I imagine my lease calculations were done at around 80cents a litre.

Oh well. You can't take it with you to heaven (or hell). Enjoy it while you can. It is the same for everyone.

While other fuel efficient cars may look more attractive in % terms they have been hit the same as us V8 people.

I agree but in cutting back on other things.....i now walk to the pub. Saves me money and means i can drink more booze !!!

[BlackClubbie]

Man, I'm glad i got a V8 last year and that i haven't waited for a few more years, the way it's going, it'll all be europeanized, tiny tin cars with 35 litres tanks, 2.5 or 3lt V6 for top of the range sedans, and v8 for luxury german cars... that's it !

Lucky for me, business is going well ( touch wood ) and petrol is yet another business expense... but i feel for you guys that have to fork out $100 to fill your cars up , especially for you guys that drive to and back from work every day....

[Felony]

Those numbers are staggering seldo. Lucky for me, my SS is a weekender car. Only problem is, due to my location, it's a 200km trip to Macaky, which is the only location for decent entertainment - then another 200km trip back.

Nasty!

[SS_Fury]

ahhhhh but if you drink more booze it costs ya more money!! :cool:

[Veeate]

ahhhhh but if you drink more booze it costs ya more money!! :cool:

Yeah i know. Still.....can't take it with you.

[clarky]

Yes I wish I could claim my fuel back. I pay minimum $100 per week to drive to work and back. However, it sure beats the train, nothing better than cruising in my SS with my music on with a V8 under the bonnet, like the rest of you petrol is a pain and its all cheaper, but we love our cars and unfortunately these days thats the way it is. Either that or you a buy a suzuki cino. No thanks Ill stick to the SS :D

[REV-IT]

Seldo,
I purchased fuel for $1.12 per litre in Feb. I cover 45k minimum pa and use as an average of 14 litres per 100klms. Should the fuel hit $1.60 per litre, the difference in my case adds up to be $3654 pa.
cheers

[SV99]

I filled up yesterday 61ltrs and it cost 85 bucks (98 PULP)

so say min of $1.70 for 61ltrs is $103.70

FFS i remember when 61 ltrs was 61 dollars !!!

The oil companies have put margins up at the refinery by 3 fold. before it was 7cpl margin (last 2 months or so) its gone upto 21cpl REFINERY margin.


:mad: :bash:


Im guessing i will see alot of v8s forsale soon and Ski Boats and a few other toys I am cashed up to buy.

[phillipg]

The worst thing is it just dosnt affect how we use our cars, price of fuel goes up so does food etc, so you get affected more than just at the pump. How many business are now struggling due to the change of habits, not eating out, going to the movies etc to cover fuel, if the price continues to rise the luxury items if you can call them that will slowly dissappear. Not good for the long term

[clarky]

Yes exactly right it will put many businesses to the wall and people will not be going on road trips weekends away, has affects for all parts of the economy foods and other essential services will all go up. Even $1.00 per litre was bad, but at least then you put 61 dollars in you got 61 litres, I use BP Ultimate which considering ULP will be $1.60 in a few weeks, PULP will at least be $1.70. If this new hurricane in USA hits texas directly which they say it will, we are in for it. All the oil rig workers in the gulf of mexico have evacuated again, they are prediciting the barrell price to rise to $85 US a barrell.
The oil companies will push the price up here in AUst on the back of that info

[oz_utester]

can this put us into a recession?

[seldo]

Seldo,
I purchased fuel for $1.12 per litre in Feb. I cover 45k minimum pa and use as an average of 14 litres per 100klms. Should the fuel hit $1.60 per litre, the difference in my case adds up to be $3654 pa.
cheers
At 45k p/a I guess you don't have any trouble with cold starts ...it wouldn't have time to cool down..;)

[clarky]

Not sure about recession depends how much the price goes up, problem is people will not be able to pay their bills/mortgage. Either that or the sell their car and for some people there is no transport where they live so they have to drive. I live in Melb and I notice most service stations now, have signs on the pumps saying we expect to be paid, no mobile phones or other valuables to be left. Seems that people were leaving their valuables in order for petrol. Was talking to one service station owner 2 weeks ago, he showed me a stash of wacthes mobile phones etc that people had left for payment and said they would be back to collect them and pay the amount, he said some of the mobiles and one Tag Heur watch had been there for over 2 months. He is no longer taking valuables if people cant pay he just calls the police, sign of the times, but as he said poor buggers need their cars and cant afford to get to work. One guy he said was taking 4 weeks leave as he couldnt afford to drive to work !! Not good at all

[seldo]

Just slightly OT, I was having a discussion with a mate of mine yesterday who, between him and his father spent over 50 years in the fuel business. He was pointing out that despite what the public think about the oil companies being huge rip-off merchants, the oil companies in Aust haven't made a cracker in Aust for most of the last 50 years. It is only in very recent times that they are starting to make some money. And this is largly because the oil business requires huge capital investment that Aust simply doesn't have the population to support viably due in part to the vast distances that need to be serviced. And what's more, if it wasn't for the fact that they are finally starting to make some money there was every chance that they would be backing out of the refining business altogether here and leaving Aust to import all its fuel pre-refined....then you'd know what high prices really are..!

[OzJavelin]

Wonder how long before we get the old 55-mph max speed limit imposed to save fuel? :)
Some people were struggling when banks were looking at raising interest rates 0.25% (maybe $40/mth increase?) .. they are paying $40/mth increase in fuel now.

[OzJavelin]

if it wasn't for the fact that they are finally starting to make some money there was every chance that they would be backing out of the refining business altogether here and leaving Aust to import all its fuel pre-refined....then you'd know what high prices really are..!
I'd say fine .. let them nick off and we'll focus on Ethanol production and become self sufficient with our "tiny" population and large agricultural land mass :)

[phillipg]

Its sad to see this sort of thing happening, families and small business struggling, and this was supposed to be the lucky country, not really that lucky

[clarky]

Yes very sad to see it happening and yet again the average joe suffers for it. I am sure the government could help out, they just dont want to, this story that their hands are tied is rubbish, I agree with Seldo, oil companies are made out to be the bad guys, in some cases yes, but more to blame is the government, over half of the cost is tax. They should provide some relief to motorists even temporarily, but as we all know it wont happen.

[seldo]

I'd say fine .. let them nick off and we'll focus on Ethanol production and become self sufficient with our "tiny" population and large agricultural land mass :)
:lol: :lol: Yeah....Didn't you see the story in the paper this week about the bloke with a Discovery who was trying to be green and use ethanol-added fuel. Having now lost 3 fuel pumps so far this year at ($600ea) he's decided that they can stick the ethanol where it will have the most effect. Apparently it disolves the insulation on the wiring in the pump and causes a short...:shock:

[VXSPR6]

They had a dude on the radio this morning saying that all the people scare mongering about fuel prices should "shut the hell up" (not their words but intoned ;) ) and that they're not expected to go up that much in the next week or so. IMO the price hikes in lieu of Hurricane Katrina, Iraq war, etc are just penny pinching on behalf of the oil producers and definately not fair. Hopefully something comes of the fuel summit today :rolleyes:

There was some info going around a few weeks back regarding equivalent oil prices over the last 30-40years (including cpi allowances) showing that oil topped at a whopping US$95 per barrel in 1979 (would have been less then but was more given it's value against today's dollar) before a massive drop - likely due to backlash. Fingers crossed that drop actually comes and does so soon - I do between 750-1000km per week which even in the V6 amounts to $120-150 per week! :eek: Not long ago the budget was less than $100 per week. :(

[forcedindction]

Actually, some people are calling for an increase in fuel prices. Why? Because it is the only way to force people to use less of a valuable and non-renewable resource. Take the U.S for example. They are the biggest gas guzzling nation on earth (over 40% of world oil) and it is no wonder with their like of SUVs and trucks powered by thirsty V8s. And the car manufacturers are largely to blame !! In the end it is going to bite them in the ass.

Let's hope that oil prices go down as many are hurting. But, at the end of the day we all need to be responsible and few of us are unless we get stung where it hurts the most !!

[Dilan]

Actually, some people are calling for an increase in fuel prices. Why? Because it is the only way to force people to use less of a valuable and non-renewable resource. Take the U.S for example. They are the biggest gas guzzling nation on earth (over 40% of world oil) and it is no wonder with their like of SUVs and trucks powered by thirsty V8s. And the car manufacturers are largely to blame !! In the end it is going to bite them in the ass.

Let's hope that oil prices go down as many are hurting. But, at the end of the day we all need to be responsible and few of us are unless we get stung where it hurts the most !!
They said on the news this morning that petrol prices in the US were only $.85. So we are almost paying double the ammount of the biggest fuel guzzling nation.

[clarky]

I just spoke to a friend of mine in the USA, he just paid $2.35 per gallon, and there are 4 litres in a gallon, your right we are getting shafted and he thinks he got it bad. Although there population is huge and most things are cheaper, they have always had cheap gas hence why they all drive gazz guzzling trucks. Seen a good number plate on an SS the other day here in Melb GASGUZ. How appropriate :lol:

[VRIIClubby]

Lil Johnny was saying on the TV last night that a cut by the gov of only 1c a litre would cost in the vicinity of $390 Million dollars a DAY...ouch...

What pisses me is that Sydney Buses are trying to get a ticket price rise because of the new petrol prices, but hang on a second, aren't over 80% of the sydney buses natural gas? :mad: (i understand out west etc where i live as there isnt natural gas buses)

[SSFreak]

In the news:


"...Australia's four major oil refining companies, BP, Shell, Caltex and ExxonMobil, recently recorded huge yearly profits but the numbers were down for most of the companies compared with the previous year...."

The Advertiser 22 Sep 2005
http://www.theadvertiser.news.com.au/common/story_page/0,5936,16681105%255E911,00.html


"...It will also raise concerns that oil companies have tripled their refining margins in the past couple of months...."

ABC News Online 22 Sep 2005.
http://www.abc.net.au/news/newsitems/200509/s1465710.htm


"...Mr Samuel queried whether oil companies were profiteering, saying the margin between the crude oil price and the refined product price had never been as high as it was currently...."

"Just in the past two or three weeks that refined margin ... that difference in price, has gone from about $US7 a barrel up to about $US17 a barrel," he said.

Sydney Morning Herald 8 Sep 2005
http://www.smh.com.au/news/national/something-funny-as-petrol-hits-148/2005/09/08/1125772632855.html


And can someone please explain this to me. The market price for fuel has gone done but the bowser price has gone up.

http://www.haroc.1337thing.com/ls1/SSFreak/platts_aus_28day.gif

[clarky]

Your right no explanation at all, greed?

[VTSS_WA]

Looks like I'm going to catch the bus to work.

[SSFreak]

Does anyone know how to hitch a couple of horses to an SS? I'm sure horse feed must be cheaper than petrol. :)

[Nursing_Mother]

I dont normally enter into this whole'Fuel is getting to expensive'stuff because i write mine off on tax but now it is getting out of hand,I have not had my one tonner all that long really but im starting to think i should have bought a four banger.Also it is only a matter of time now until Holden will struggle to sell enough commodores to be viable and while i am on the subject if Mitsubishi folds in Adelaide then our little town is gonna go straight down the gurgler :(

[SS_Fury]

most here would know how to get a few more horses OUT of an SS...but to make em pull an ss? ya need a bit of rope, reins, lots of hay as incentive and be prepared to run over a lottttttttttt of horsie crap :confused:

[SSFreak]

most here would know how to get a few more horses OUT of an SS...but to make em pull an ss? ya need a bit of rope, reins, lots of hay as incentive and be prepared to run over a lottttttttttt of horsie crap :confused:

He, he. I'm thinking ahead to when the world's oil runs out. I'll still want to drive around in my SS so it will be using a different sort of horse power. Maybe if I put a lower front spoiler on it, it could scoop up all of the horsie crap. :D

[pah]

Those numbers are staggering seldo. Lucky for me, my SS is a weekender car. Only problem is, due to my location, it's a 200km trip to Macaky, which is the only location for decent entertainment - then another 200km trip back.

Nasty!


I see your point mate. Even with the LS1's brilliant open road economy (8 - 9 L/100 kms), you're looking at $50 for petrol alone. Mail order CD's might be the go mate :eek:

It's going to be a tad more difficult to justify the purchase of another V8 at today's petrol prices. Those of us who are paid a petrol allowance side-step some of the pain, but I wear the depreciation so I have a vested interest in minimising this.

We've all got a "line in the sand" somewhere. If the pressure becomes too great, we'll either give up quick cars, buy a quick bike, or buy a more economical quick car such as a WRX (and apologies to IH8WRX).

Looking at things from another angle, it's not the "high" prices that are damaging V8 resales - I'd say it's the rapid increase in prices. Justification for this view? For years, the Pom's having been paying what we are now squealing about and the V8 niche is alive and well over there. If petrol prices stabilise and people become used to them, V8 resales might improve. That may be a BIG IF and I am not sure that I'll take the gamble again by buying another V8. I've been informed by a WRX devotee that the next model will have the 2.5L engine. That sounds OK to me. Furthermore, a WRX 4WD means that the cowboys amoungst would have one less thing to worry about - breaking the sustained loss of traction laws (and car confiscation). The WRX driver I spoke to yesterday claim he's getting 10 L/100 km's around town (and that's where I do most of my driving).

And before anybody carries on aboutr my WRX heresy, just remember that there's no need to improve the product if you're targetting blind devotees who will always buy the ONE brand. It's the threat of the loss of customers that prompts manufacturers to look more closely at gadgets like the Torana TT etc.





PAH

[Timmy]

if holden cant sell enough cars to keep a float it wont matter out generous government will be quick to slip holden another grant of a cool 50million, mind you a 50million that was raised by 'us' paying 70cents a litre tax on petrol. :rolleyes:

[plonkerchops]

here in Margaret River Ultimate 98 is $1;60 already...
ULP is about $1:50

[GM-IRON]

I was getting just on 400kms out of one tank on the ute.
Over $100 to fill up on Ultimate, and I also use over one tank a week.
I converted the ute back to stock, sold most of the stuff and trade it in on a A Class-190.
Power? what power? And front wheel drive is taking a bit to get used to.
But it drives well, seats five and I just went and fill it up after doing over 700kms city driving out of 52 litres of fuel.
For the mean time it will do and I will be keeping an eye on what the industry comes up with LPG and LS1's.

Regards,
GM-IRON

[keepleft]

GM-IRON wrote: " trade it in on a A Class-190.
Power? what power? And front wheel drive is taking a bit to get used to.
But it drives well, seats five and I just went and fill it up after doing over 700kms city driving out of 52 litres of fuel".

A Class as in MB?

The thing should bear front fogs, a single rear fog, and a warning triangle!:-)

[GM-IRON]

Yeah, its a MB. Not a bad little car, and no, it doens't fall over. lol

cheers,
GM-IRON or, mmmm MR BENZ wanna be.

[heavychevy]

As PM'd to a forum member tonight....

"The clubby is a keeper for the moment, although I would love to update. Paid the last CHP payment ( 5 year 30% ) last week and will buy her outright for 15k. Fuel costs have me worried about commiting to another HSV at the moment... also concerned bout their resale value in 3-5 years time if the trend continues. .... so I figure that I may as well hang on for another 12 months and see what happens...."

Like Nursing Mother said, fuel is not so much a problem when there is an income tax advantage, Im more concerned about the resale value of a new HSV

[OUTAtheBloo]

The cost of fuel sux for sure, but buying and selling cars all the time surely costs more !, i know ive lots heaps of money doing that ! No matter what im keeping the ute.. I bought it for 37 grand 2 years ago, now in red book i may get 20 - 24 grand for it.. Ill keep it for life if i can !

[mavss]

CV6 owners must be laughing all the way to the bank.

Not only do they pay a bucket load less for fuel than their CV8 brethren, the car looks every bit as good.

[XLR8 V8]

CV6 owners must be laughing all the way to the bank.

Not only do they pay a bucket load less for fuel than their CV8 brethren, the car looks every bit as good.


I dunno ... the Super6 can be a thirsty bugger ... and premium fuel all the way just like our V8's

[Drewie]

As PM'd to a forum member tonight....

"The clubby is a keeper for the moment, although I would love to update. Paid the last CHP payment ( 5 year 30% ) last week and will buy her outright for 15k. Fuel costs have me worried about commiting to another HSV at the moment... also concerned bout their resale value in 3-5 years time if the trend continues. .... so I figure that I may as well hang on for another 12 months and see what happens...."

Like Nursing Mother said, fuel is not so much a problem when there is an income tax advantage, Im more concerned about the resale value of a new HSV

Very good point on the resale in 3 to 5 years if the trend continues.

[cartees]

A buck sixty a litre is 68p UK, they'd think it was Christmas if they got petrol that cheap, a mate in the UK tells me he pays 99p/$2.34 au per litre right now.

[VeeTee346]

I dunno ... the Super6 can be a thirsty bugger ... and premium fuel all the way just like our V8's

Exactly right.. and if you compare to a manual V8 I'd be surprised if the Super6 didn't chew through the same amount of fuel.

All these panic attacks over fuel costs have to be put into perspective.. who here is complaining about petrol prices that also bought their car NEW? Depreciation's a FAR worse killer - yet people still afford to update every few years.

Petrol might stabilise at a new plateau and we'll all have to live with it. I can imagine that Holden is freaking out over high petrol prices, having to soon market a big investment in VE. The market was shrinking as it is before prices went up.

[SSFreak]

All these panic attacks over fuel costs have to be put into perspective.. who here is complaining about petrol prices that also bought their car NEW? Depreciation's a FAR worse killer - yet people still afford to update every few years.


It is inevitable that petrol prices will rise, just like everything else, and will continue to over the years until we eventually run out of oil. The issue I have with petrol pricing is that we are paying more than we really need to. The prices are artificially high due to increased margins from the oil companies and US hedge funds trying to capitalise on their returns. I don't mind paying a fair price for petrol, I just object to paying more than we really should be paying because of people trying to squeeze as much as they can out of the market. There is a difference between paying what something is worth and being ripped off from artificially boosted prices.

[pah]

As PM'd to a forum member tonight....

"The clubby is a keeper for the moment, although I would love to update. Paid the last CHP payment ( 5 year 30% ) last week and will buy her outright for 15k. Fuel costs have me worried about commiting to another HSV at the moment... also concerned bout their resale value in 3-5 years time if the trend continues. .... so I figure that I may as well hang on for another 12 months and see what happens...."

Like Nursing Mother said, fuel is not so much a problem when there is an income tax advantage, Im more concerned about the resale value of a new HSV


Heavychevy,

I agree. I intend hanging onto my LS1 for a while until the dust settles. I had intended on purchasing a VE LS2, but that's a definite NO-NO now. My machine has depreciated somewhere around $20k in just over two years. That's $10 per year or $200 per week and that's big $ to be able to enjoy a shove in the back from the odd standing start.

One of the factors that influenced me against the WRX was the insurance costs. Last time I looked WRX resale after 3 years was up around 72%. My VY is already down in the 50% range well before it's 3rd birthday. It doesn't take a rocket science degree to figure out that the higher depreciation well and truly offsets any extra insurance costs. An old fart in a kid's car? That's another matter I guess. A WRX driving work mate assures me that the next WRX will have the 2.5L engine and that sounds good.

Why hang on to the LS1? In the mid to late 70's V8's were a dime a dozen when fuel sky-rocketed from under 20 cpl to over 30 cpl. When we all got used to those prices, V8 resale returned a tad and those who bought a cheapie were laughing. As stated above, V8 driving POMs have been paying more than $1.60 for years. It's not the price that's doing the damage - it's the rapid increase in price.



PAH

[Dane VN V8]

Just heard on the news we might be paying $2 a litre sometime soon :bash:

[clarky]

I heard the same thing Dane, and also Steve Bracks making 1 million per day out of us Victorians, same in other states also, plus $50million into little John Howards surplus. Does anyone know the tax breakdown on the fuel, what would petrol cost if the taxes were slashed.

As dane said they say $2 per litre is not out of the question, as they say best case scenario it will never get to under $1 a litre again. As stated previosuly I dont mind paying what something is worth, but when you are getting ripped off thats when we all kick up a stink

[Thumper]

I was at a function hosted by a major oil company on Thursday PM, where the CEO said the root cause of the increase in fuel costs, is because of the demand upon the crude oil suppliers by mainland China, to satisfy their growth of economy.
Because of this, he said it will be several years before the supply profile matches the demand, hence increased costs.
When asked about the US hurricanes, he said that it would have a small effect, only.
He also went on to say, that the oil companies downstream business units, would make better money if they invested their assets, because profits are not as readily gained as would be thought by the increases in fuel cost.
This is because of the mad scramble and competion required to source the supply.

[SSFreak]

I'm certainly no expert on this subject but from what I've read, China accounts for 8% of world oil consumption and produces 50% of the oil it consumes. The US accounts for around 25% of world oil consumption. If the oil prices keep increasing, countries like China may be priced out of the market, ie. they won't be able to afford it.

[SSFreak]

"The price of gas fell more than 20 cents over the past two weeks..."

"Wall Street analyst Peter Beutel of Cameron Hanover predicted the average price nationwide will fall to $2.50 to $2.75 per gallon in the near term, and to less than $2 next year."

"Other analysts were not so optimistic, saying prices at the pumps could soon climb back to near $3 a gallon. "

"Yes, it's going to take time to repair these refineries, and yes there will be at least one day we'll see prices run up. But I think we've probably seen the highest gasoline prices behind us."

http://money.cnn.com/2005/09/25/news/economy/oil_gasoline/index.htm?section=cnn_topstories

[andrewdisco]

I was at a function hosted by a major oil company on Thursday PM, where the CEO said the root cause of the increase in fuel costs, is because of the demand upon the crude oil suppliers by mainland China, to satisfy their growth of economy.
Because of this, he said it will be several years before the supply profile matches the demand, hence increased costs.
When asked about the US hurricanes, he said that it would have a small effect, only.

Everyone who says something publicly about this topic seems to beleive they are an expert. If the hurricanes only have a small effect then why does the price of crude drop 10% the day after it's all over? (10% is no SMALL EFFECT).

There are several factors.

1. World inventories at their lowest.
2. Hurricane Katrina and Rita.
3. Increasing demand from China and India (who quickly gets priced out of the market). and
4. SPECULATION.

check NYMEX.com tonight (new york mercantile exchange) when the US market comes back online and watch the price tumble.

As has been recently mentioned in the thread, opec will not allow oil to go through the roof... cause then we won't buy it!. We'll start pumping more money into R&D and within 5 years we'll have serious alternatives and the poor old arabs won't have control over such a large proportion of the worlds energy needs any more. Our goverment has already knee jerk reacted to the need for alternate energy's in the last few weeks.... this has to be a major concern for opec. Alternate energy's will easily be found. We've just never really been forced to put our minds to it before. Why would we when petrol was always so cheap and easy ?

It's like the share market, housing market.. any type of market... when it's on the way up people think the prices will keep soaring forever... but when it's on the way down they can't see them ever going up again.... it's people's natural tendancy to over react.

Fossil Fuels will run out.. prob not for another 30 years though... maybe longer. There may even be a point where fuel gets very cheap in order to stop us buying new whiz bang electric cars.... who knows.

Today petrol is 1.22 down the road.... still going down.

[VQ304]

"But I think we've probably seen the highest gasoline prices behind us."

I hope that's true. I'm right on the verge of selling the V8... Guess I'll hold on to it for a bit longer and see what happens.

Petrol has dropped in price considerably here too. Went from 133cpl to 123cpl in one week.

[Kirium]

Among the 4 issues listed above, I'd say speculation is the biggest problem... Poindexter accountants over at the NYSE dreaming up what they think is going to happen down the track, predicting the worst and driving up prices, with no real evidence to justify the high prices.

[keepleft]

Good reading Andrew -

Some say however fossil fuels as they are described, are an ongoing constant reality.

http://www.lewrockwell.com/crispin/crispin12.html

[Thumper]

WRT selling the V8's I'd say that looking at the future, if others are quitting their LS1's, now might be the best time to buy at the bargain rate. Bit of a gamble, but may pay off.

[LSX-438]

Oil companies in the USA need to publicly estimate their reserves to value the company, whereas it's kept a state secret in Saudi Arabia - therefore experts just don't actually know how much is left. Supply could have peaked already, there could be 10-20-50-100 years to go or more. They dont know. Probably the biggest issue is growth of consumption (india, china etc).

[White Rider]

Things are so desperate, ppl might be driving cars on LPG soon!

GASP!

[dave_au]

Probably the biggest issue is growth of consumption (india, china etc).


Don't get too focused on China and India's growth, it's actually starting to slow as compared to what it was a couple of years ago. The biggest oil user, still is, and always has been the United States.