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Sick of high fuel prices?

After years of watching the petrol bowser spike, Australians have had enough and will be showing their disgust on October 26, with a National Fuel Strike where people are being asked not to enter a petrol station that day.

More than 44,000 people have signed a petition calling for the strike and they want the Federal Government to remove the excise and taxes which amount to more than 30% of people’s petrol charges.

As an example, here is the breakdown of what you are paying…

At a purchase price of 137.6 cents a litre on retail regular unleaded fuel:
– the Federal excise tax accounts for 40.9 cents.
– 12.5 cents is GST.

This equates to 53.4 cents per litre for taxes only.

I support the lowering of the Federal taxes that have been placed on fuel.

Visit the National Fuel Strike page: https://www.facebook.com/events/482802342224676/

Track fuel on these apps: Fuel apps to get: FuelCheck (NSW), MuFuelNT (NT), MyNRMA (Aus wide) and RAC Go (WA).

THE AUSTRALIAN OIL INDUSTRY

Australia has rich resources in oil, gas and energy industries, yet we are importing nearly all of our oil. Our refineries import roughly 83% of the crude oil they process from more than 17 countries, mainly in Asia (40%), but also Africa (18%) and the Middle East (17%). 51-53% of our imported refined petrol comes from Singapore’s refineries, with 18% from South Korea, 12% from Japan and the rest from a range of other countries. We are a significant oil producer, but export 75% of our crude production, with the largest recipients being Indonesia and Singapore.

There is a reason that has been cited for why so much of our oil is exported.

A Parliamentary Committee Report has said:

2.17  The majority of Australia’s crude oil production is exported because the qualities and characteristics of Australian oil are more suited to export markets than the Australian refinery market. [34] For example, most of the liquid fuels production from the North West Shelf (Western Australia) is in the form of condensates, which are not suited to the existing infrastructure of Australian refineries. [35]

View the report here.

The ongoing closing of our oil refineries means that by the year 2030, we will be importing 100% of our petroleum. This is a very scary prospect and a threat to our national security if there are disruptions to imports. Our own oil supply is not only about keeping cars on roads, but our businesses rely on road transport, we must be able to supply food and medicine and fuel our military is vital.

THE GLOBAL OIL WAR…international relations have played their part too.

A deal was made by the world’s largest oil cartel, the Organisation of the Petroleum Exporting countries (OPEC) – with Saudi Arabia, Iraq and Iran being its largest oil producers.

Nearly two years ago, the oil producers from OPEC and non-OPEC countries (led by Russia) decided to cut the output by up to 1.2 barrels of oil per day.

This was designed to speed up market stabilisation, reduce volatility and attract new investments, in a time when there was a global oil oversupply and record low oil prices. This occurred because Saudi Arabia sharply increased its output to drive-out US shale firms from the market. This strategic move however did not work as it sunk oil-dependent economies such as Russia and Saudi Arabia itself.

As a consequence of this, large exporters started oil output-capping negotiations and the deal is set to end this year. Because there is not much oil supply, prices have risen.

As you can see, whilst petrol price costs can be cut by lowering the taxes, changing international oil deals that have been made to boost abroad economies, will be a tough and perhaps an impossible feat.

AN ALARMING FACT:

Australia only has two weeks of fuel reserves, yet the international mandate is a 90-day stockpile.

 


Information sourced from:

https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_and
_Regional_Affairs_and_Transport/Transport_energy_resilience/Report/c02#c02f34

https://theconversation.com/australia-imports-almost-all-of-its-oil-and-there-are-pitfalls-all-over-the-globe-97070

http://www.abc.net.au/news/2017-12-27/why-petrol-expensive-global-oil-deal-opec-reserve-bank-dilemma/9287666