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Have we seen the last of $2 petrol for a while?

<p>Average fuel prices in Australian capital cities remain well below the peaks seen in March and June. <a href="https://www.drive.com.au/news/fuel-prices-today/" target="_blank" rel="noopener">Recent data</a> reveal fuel is around 30-35 cents per litre lower than the highs of two months ago. As of last week, the average price of 95 octane unleaded across eight capitals stood at A$1.90 per litre.</p> <p>The question on the minds of many motorists and businesses relying on road transport to deliver goods and services is: have we seen the last of $2 petrol for a while?</p> <p>Given this year’s trends in international oil prices (<a href="https://theconversation.com/what-russias-war-means-for-australian-petrol-prices-2-10-a-litre-177719" target="_blank" rel="noopener">a key component</a> of Australia’s petrol prices), the answer would be: “It depends on the fuel excise”.</p> <h2>A fuel excise cut after Russia invades Ukraine</h2> <p>A <a href="https://www.accc.gov.au/consumers/petrol-diesel-lpg/about-fuel-prices#:%7E:text=On%2029%20March%202022%20the,per%20litre%20for%20automotive%20LPG." target="_blank" rel="noopener">fuel excise</a> is a tax on fuel levied by the Australian government.</p> <p>In March this year, as Russia’s invasion of Ukraine began to drive international oil prices up, the previous federal government <a href="https://budget.gov.au/2022-23/content/factsheets/download/factsheet_excise_offpublicroads.pdf" target="_blank" rel="noopener">announced</a> a 50% cut in fuel excise for six months. In other words, it would charge less tax on fuel until September (in an effort to soften the impact of soaring international oil prices on Australian consumers). After this decision, the cost of petrol reduced by 22 cents per litre.</p> <p>While the general trend is downwards in recent months, crude oil <a href="https://www.marketwatch.com/investing/future/brn00?countrycode=uk" target="_blank" rel="noopener">prices have ranged</a> between US$92 and US$123 per barrel – much higher than the norm in recent years.</p> <p>With Australia’s <a href="https://theconversation.com/high-petrol-prices-hurt-but-cutting-excise-would-harm-energy-security-178766" target="_blank" rel="noopener">halved fuel excise</a>, this price range translates to average 95 octane unleaded petrol prices across eight capitals of between A$1.90 and A$2.25 per litre.</p> <p>Globally, crude oil is <a href="https://tradingeconomics.com/commodity/crude-oil" target="_blank" rel="noopener">down about 25%</a> from the June high of US$123 per barrel. That’s in part due to growing fears a global economic slowdown would affect consumption, as central banks around the world raise interest rates to combat spiralling inflation.</p> <p>The potential revival of a <a href="https://finance.yahoo.com/news/oil-prices-plummet-iran-nuclear-200000751.html" target="_blank" rel="noopener">deal</a> between Iran and Western countries that could lead to more Iranian oil exports has also helped <a href="https://finance.yahoo.com/news/oil-prices-plummet-iran-nuclear-200000751.html" target="_blank" rel="noopener">drive oil prices</a> down. This is generally good news for petrol prices in Australia.</p> <h2>What next for the fuel excise in Australia?</h2> <p>However, a lot will depend on what the Australian government does about the fuel excise.</p> <p>It is uncertain whether the new government will extend the fuel excise cut brought in by their predecessors in March.</p> <p>The excise cut is set to expire in September, right in the middle of a cost-of-living crisis in Australia.</p> <p>In July, amid calls to extend the fuel excise, Treasurer Jim Chalmers said <a href="https://www.sbs.com.au/news/article/the-price-of-fuel-is-set-to-rise-heres-why-and-how-much-it-could-cost-you/w2v0xrwpm" target="_blank" rel="noopener">an extension is not an option</a>:</p> <blockquote> <p>We’ve tried to be upfront with people and say they shouldn’t expect that petrol price relief to continue forever.</p> </blockquote> <p>According to the federal budget, the six-month excise cut has resulted in a <a href="https://theconversation.com/josh-frydenbergs-budget-is-an-extraordinary-turnaround-but-leaves-a-40-billion-problem-180123" target="_blank" rel="noopener">A$3 billion hit</a> on the economy.</p> <p>Recent news reports indicated the prime minister was “examining” a fuel excise cut <a href="https://www.crikey.com.au/2022/08/24/pm-examining-fuel-excise-cut-extension/" target="_blank" rel="noopener">extension</a>, but remains adamant the cut is a temporary measure.</p> <p>If the cut is not extended, average petrol prices in Australia will almost certainly return to the above $2 territory by early October.</p> <p>However, the solution to Australians being held hostage to volatile global prices and geopolitical developments will not come from extending the fuel excise cut.</p> <p>The solution will come from reducing demand for oil-based fuels through policies promoting local energy generation and switching to low-emissions vehicles.</p> <h2>The longer-term outlook</h2> <p>Over the longer term, there is hope oil and petrol prices will not affect the pockets of Australian motorists and the Australian economy to the same extent as they have earlier this year.</p> <p>The new Australian government <a href="https://www.cnbc.com/2022/08/22/australian-bank-to-scrap-loans-for-new-diesel-and-gasoline-cars-.html" target="_blank" rel="noopener">has acknowledged</a> the country is “significantly behind the pack when it comes to electric vehicles.”</p> <p>Only 2% of cars sold in Australia are electric, <a href="https://www.iea.org/data-and-statistics/data-product/global-ev-outlook-2022" target="_blank" rel="noopener">five times lower</a> than the global average.</p> <p>The government recently released some detail on plans to set up a <a href="https://infrastructuremagazine.com.au/2022/08/22/australias-first-national-electric-vehicle-strategy/" target="_blank" rel="noopener">National Electric Vehicle Strategy</a>, with a discussion paper on the matter due to be released soon for consultation.</p> <p>At the heart of the strategy will be a plan to grow the Australian electric vehicle market, in a bid to improve uptake of electric vehicles and improve affordability and choice.</p> <p>Australia is <a href="https://theconversation.com/the-road-to-new-fuel-efficiency-rules-is-filled-with-potholes-heres-how-australia-can-avoid-them-188814" target="_blank" rel="noopener">the only OECD country</a> to not have, or be in the process of developing, mandatory fuel-efficiency standards for road transport vehicles.</p> <p>The new government <a href="https://www.cnbc.com/2022/08/19/australia-plans-fuel-efficiency-standards-to-boost-electric-car-supply.html" target="_blank" rel="noopener">will seek to introduce</a> vehicle fuel efficiency standards to help increase the supply of electric cars, improve affordability for motorists and drive down emissions.</p> <p><strong>This article originally appeared on <a href="https://theconversation.com/have-we-seen-the-last-of-2-petrol-for-a-while-189330" target="_blank" rel="noopener">The Conversation</a>.</strong></p> <p><em>Image: Shutterstock</em></p>

Travel Trouble

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12 easy ways to save on petrol

<p>The average price of petrol skyrocketed around the world after Russia’s invasion of Ukraine in February 2022. The financial impact of filling up at the bowser could get worse before it gets better. So, we’re here to help you get the most for your money. The tips below will show you how to find cheap petrol, how to get better petrol mileage, and petrol apps and credit cards to use in the process. Ready for big-time savings?</p> <p><strong>1. Plan the best route</strong></p> <p>Getting from point A to point B quickly sounds like the best way to save petrol. After all, shorter distances mean less time on the road and less fuel used, right? Well, not exactly. It’s more important to take the route that helps you avoid traffic, construction and congestion. Yes, it may seem counterintuitive to drive further to save petrol money, but some longer routes may actually be more fuel efficient, says Kyle Tetz, a former Honda employee, van life and travel expert, and founder of travel website The Next Trip.</p> <p>Travelling on a highway can lower your petrol mileage by 15 to 30 per cent, while stop-and-go traffic can cut it by 10 to 40 per cent. With that in mind, here’s how to save money on petrol. Plot a route ahead of time, using a map app or Google Maps to pick roads where you can maintain a steady speed and avoid traffic or city traffic lights. You can then use the mileage to calculate petrol costs for your trip. As a bonus, you’ll also suffer less brake wear and road rage.</p> <p><strong>2. Properly inflate your tires</strong></p> <p>Proper inflation of all four tyres is the key to maximising petrol mileage, says Rick Cornilie, senior product merchandising manager and resident tyre and auto expert. He adds that while engine efficiency is essential for getting better kilometres per litre when driving, your tyres need to be properly and optimally inflated in order to maximise the engine’s potential. Under-inflated tyres will deliver poor petrol mileage and lead to more trips to the pump, which will cost you a lot of extra money throughout the year.</p> <p><strong>3. Remove excess weight from the car</strong></p> <p>The heavier your car is, the less fuel efficient it will become, says Lauren Fix of the Car Coach Reports website. If you’re looking for a super-simple solution when researching how to save petrol and get more kilometres per litre, start by removing unnecessary objects from your car. But don’t stop there. Avoid hauling bulky items on the roof as well. You’ll increase your vehicle’s aerodynamics and help keep your car as fuel-efficient as possible, Fix says.</p> <p><strong>4. Stop warming up your car</strong></p> <p>We get it: when mornings are chilly, slipping into a toasty front seat is borderline divine. But your fuel economy is going to suffer, and you’ll find yourself at the pump sooner if you keep warming up your car. Modern cars don’t need anything more than a minute to ‘wake up’. Letting your car warm up any more than that is unnecessary. With petrol prices rising, the warmth will ultimately leave you cold as you spend extra money at the pump.</p> <p><strong>5. Use ride share and public transport</strong></p> <p>In recent years, using rideshare services to get around has been a great way to save money on petrol. After all, if you aren’t paying to fill up a petrol tank, you aren’t spending any money at all at the pump. Though this perk is changing slightly, it doesn’t mean rideshares are automatically too expensive. Depending on your commute and your needs, ditching your car for a rideshare could be the answer to how to save money on petrol in 2022.</p> <p>You can certainly bike and carpool around town, but public transport continues to be an affordable, safe and reliable way to get to most destinations in cities and towns across the country. And there’s no need to learn how to save money on petrol when you don’t use the stuff. Nix your petrol needs by taking buses, trains, trams and metros to and from work and nights out. Going sans car may seem inconvenient at first, but the money you’ll save by not paying to fill up may change your attitude towards public transport.</p> <p><strong>6. Minimise AC use</strong></p> <p>If you’re driving during the summer, consider being more judicious with how and when you blast the AC. Turning off the air-conditioner while in stop-and-go traffic or moving at slower speeds can increase fuel efficiency and help save you money. So get in the habit of rolling down the windows, turning up the music, and basking in the glow of knowing how to save money on petrol while idling in city traffic.</p> <p><strong>7. Keep windows up on the highway</strong></p> <p>Putting the windows down and turning off the air-conditioner is a trick best performed in traffic. When you’re on the highway, using the AC is your best bet for cooling. The wind may feel great coursing through your hair on a summer road trip, but wind resistance can create aerodynamic drag and cause your vehicle to use more energy. And when your car uses more energy, you end up at the fuel pump paying the high petrol prices more often.</p> <p><strong>8. Maintain steady speed</strong></p> <p>Believe it or not, you’ll learn how to save petrol when you learn how to drive better. (Don’t worry, we’re not suggesting you take your driver’s test again.) You get better kilometres per litre performance when you maintain a consistent speed while driving. Over time, this will make your vehicle more fuel efficient. And you know what that means: you can spend less money on fuel.</p> <p><strong>9. Don't drive aggressively</strong></p> <p>When it comes to getting better petrol mileage, you can save money and reduce stress at the same time by driving with less aggression. Accelerating hard at green lights and braking at the last minute when a stoplight turns red isn’t just poor driver etiquette, it’s also a terrible waste of petrol. Aggressive driving habits like these make your vehicle less fuel efficient and ultimately cost you extra money at the petrol pump. Instead, drive calmly, steadily and safely. Doing so will reduce stress in you and the drivers around you, and it’ll increase your fuel economy by as much as 33 percent at highway speeds.</p> <p><strong>10. Opt for regular petrol</strong></p> <p>Unless your vehicle requires it, only fill up with regular petrol, not premium or diesel. According to car-buying site True Car, there is no reason to pay good money for something you don’t need, with experts noting that in most cases, using a higher-octane petrololine than your owner’s manual recommends offers no benefit. It won’t make your car perform better, go faster, get better mileage or run cleaner.</p> <p><strong>11. Use a credit card that rewards filling up with fuel</strong></p> <p>All but a small fraction of drivers use credit cards at the pump. That’s a good thing. Cash doesn’t offer a single reward perk. Credit cards do. But be sure you’re using a card that provides the most perks at the pump. Many of the best petrol credit cards offer valuable rewards, such as cash back, travel miles and extra points to entice you into swiping the card at the petrol station.</p> <p><strong>12. know the best days to buy petrol</strong></p> <p>You might assume Monday is an expensive day to buy petrol, what with commuters hitting the road again after the weekend. Yet in some countries it is the best day to fill up. To find out if there is a pattern for the cheapest day to fill up near where you live, put ‘best day to fill up petrol’ and your area in a search engine.</p> <p>This article originally appeared on <a href="https://www.readersdigest.com.au/travel/17-easy-ways-to-save-money-on-petrol?pages=1" target="_blank" rel="noopener">Reader's Digest</a>.</p> <p>Image: Getty</p>

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5 tips to make your fuel tank last longer while prices are high

<p>The federal government’s announcement of a halved fuel excise is no doubt music to many people’s ears. Following Tuesday night’s budget release, the excise (a government tax included in the purchase price of fuel) was <a href="https://www.smh.com.au/politics/federal/fuel-excise-slashed-to-ease-petrol-prices-for-six-months-20220324-p5a7mp.html">halved</a> from 44.2 cents per litre to 22.1 cents.</p> <p>It should provide some respite from high petrol and diesel prices <a href="https://theconversation.com/how-disrupted-russian-gas-supplies-will-hit-global-and-australian-prices-178023">driven by</a>Russia’s war on Ukraine.</p> <p>However, the cut is only expected to last six months. And Treasurer Josh Frydenberg <a href="https://www.abc.net.au/news/2022-03-29/lowdown-on-when-fuel-excise-cut-will-be-seen-at-bowsers/100949562">has said</a> it will take up to two weeks before fuel prices get cheaper (and potentially longer in regional areas). </p> <h2>The costs</h2> <p>Assuming it costs A$2 per litre for petrol and diesel fuel, and an average fuel consumption of about <a href="https://www.abs.gov.au/statistics/industry/tourism-and-transport/survey-motor-vehicle-use-australia/latest-release">11 litres per 100 kilometres</a> driven – driving a typical fossil-fueled passenger vehicle right now would cost about 20 to 25 cents per kilometre.</p> <p>You’re probably quite happy if you own an electric vehicle. With a <a href="https://mdpi-res.com/d_attachment/sustainability/sustainability-14-03444/article_deploy/sustainability-14-03444-v2.pdf">real-world electricity consumption</a> of 0.15 to 0.21 kWh per kilometre and <a href="https://www.canstarblue.com.au/electricity/electricity-costs-kwh/">electricity costs</a> of about 20 to 30 cents per kWh, your cost of driving per kilometre is about 3 to 6 cents. And if you can charge your vehicle’s battery for free with home solar panels, your cost per kilometre is $0.</p> <p>But for those of us who don’t own an electric vehicle, making the best use of our fuel tanks will be a priority. Here are some ways you can make your vehicle go the extra mile.</p> <h2>1. Use a smaller, lighter car</h2> <p>There are a number of things you can do to reduce your fuel use. The obvious one is to not use your car, but walk or grab your bicycle, if possible.</p> <p>If you do have to drive, try to minimise your total travel distance. One way would be to combine a number of errands into your journey and optimise your route.</p> <p>The specific vehicle you use also matters. As a general rule of thumb, <a href="https://www.transport-e-research.com/_files/ugd/d0bd25_9527cdcb01a84440a53308b3b5624320.pdf?index=true">the larger and heavier your car</a>, the more energy and fuel it will require per kilometre. Choosing a smaller car, rather than a large SUV, will definitely reduce your fuel bill. A large SUV will use almost twice as much fuel per kilometre as a small car.</p> <p><a href="https://www.sciencedirect.com/science/article/pii/S0360128516300442">Research</a> also suggests that for every 100kg increase in vehicle weight, fuel consumption increases by about 5% to 7% for a medium-sized car. So in addition to driving a smaller car, it’s best to reduce your load and avoid driving around with extra weight. </p> <h2>2. Use eco-driving techniques</h2> <p>The way you drive is important too. Eco-driving involves being conscious of your fuel consumption and taking actions to reduce it. There are various ways to do this.</p> <p>Every time you brake and stop, you have to accelerate again to reach your desired speed. Acceleration uses a lot of energy and fuel, so driving smoothly, anticipating traffic and preventing stops will lead to savings on your fuel bill. </p> <p>What you want to do is flow with the traffic and keep your distance from other vehicles. It also helps to keep an eye further up the road, so you can avoid obstacles and therefore unnecessary braking and acceleration. </p> <p>If you’re in the minority of people who own a manual vehicle, drive in the highest gear possible to reduce engine load and fuel use. And if you’re in an automatic vehicle, use the “eco” setting if you have one.</p> <h2>3. Give your engine and climate a break</h2> <p>Another simple tip is stop unnecessary idling with the engine still engaged. A small car typically uses one litre of fuel per hour while idling, whereas this is close to <a href="https://www.transport-e-research.com/_files/ugd/d0bd25_2485b61095ed48f29bea980a73e74240.pdf?index=true">two litres per hour</a> for a large SUV. </p> <p>Of course, we idle regularly while waiting in traffic and generally can’t do much about that, other than trying to drive outside peak hours when roads are less congested. In other cases, we can change things. For instance, idling when a vehicle is parked will use up fuel unnecessarily.</p> <h2>4. Turn off the AC</h2> <p>Most people may not realise this, but using your air conditioner can use up quite a bit of extra fuel: somewhere between 4% and 8% of total fuel use. Using the fan instead will require less energy than air conditioning. Or even better, wind down the windows for a bit for fresh air when you are driving in the city. </p> <h2>5. Tend to your tires and consider aerodynamics</h2> <p>It also pays to keep your <a href="https://www.racq.com.au/car/greener-motoring/racq-ecodrive-research-study">tires inflated</a>, which can save you between 2% and 4% in fuel use. </p> <p>Also, your car is designed to be aerodynamically efficient. Anything that changes that, including roof racks, bull bars and bike racks, will come with an additional fuel penalty – particularly at higher speeds, such as on the freeway.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/5-tips-to-make-your-fuel-tank-last-longer-while-prices-are-high-180134" target="_blank" rel="noopener">The Conversation</a>.</em></p>

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Renters spend 10 times as much on housing as petrol. Where’s their cost-of-living relief?

<p>If the pre-election budget was designed to address the cost of living, it missed something. In an effort to help those whose wages aren’t growing as quickly as prices, it offered</p> <ul> <li> <p>a one-off A$250 payment to <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/parliament-passes-legislation-lower-costs-and-support">income support recipients</a></p> </li> <li> <p>a temporary increase in the <a href="https://theconversation.com/this-pointless-1-080-tax-break-should-have-ended-years-ago-but-has-become-hard-to-stop-177546">low-and-middle-income tax offset</a></p> </li> <li> <p>a six-month halving of the <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/parliament-passes-legislation-lower-costs-and-support">fuel excise</a></p> </li> </ul> <p>But it failed to offer help to some of the Australians who need it the most.</p> <p>Australians only spend <a href="https://www.abs.gov.au/articles/automotive-fuel-cpi">3 per cent of their incomes</a> on petrol. The typical renter spends more than <a href="https://www.abs.gov.au/statistics/economy/finance/household-expenditure-survey-australia-summary-results">10 times</a> as much on rent. </p> <p>After a minor and temporary reprieve early in the pandemic, advertised rents are again on the rise – <a href="https://sqmresearch.com.au/weekly-rents.php?national=1&amp;t=1">up nearly 10%</a> over the last 12 months.</p> <p>Low-income renters are especially hard hit. More than half suffer <a href="https://grattan.edu.au/wp-content/uploads/2022/03/Grattan-Institute-Submission-to-the-PC-review-of-the-NHHA.pdf">rental stress</a>, meaning they spend more than 30% of their income on rent.</p> <p>One-third have <a href="https://www.theguardian.com/australia-news/2022/mar/30/scott-morrison-says-best-way-to-help-renters-is-to-help-them-buy-a-house-federal-budget">less than $500 of savings on hand</a> in the event of an emergency.</p> <p>Prime Minister Scott Morrison has responded to complaints about rent by saying the “<a href="https://www.theguardian.com/australia-news/2022/mar/30/scott-morrison-says-best-way-to-help-renters-is-to-help-them-buy-a-house-federal-budget">best way to support people renting a house is to help them buy a house</a>”.</p> <h2>Cutting deposits can’t cut it</h2> <p>Morrison points to the federal government’s decision to more than double the size of the <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/2022-23-budget-backs-aspiring-homeowners">Home Guarantee Scheme</a>, which helps people buy a home with less than the standard 20% deposit.</p> <p>From this year, up to 50,000 people will be able to access the scheme, under which the government offers a guarantee to the banks that cuts the up-front deposit to 5% for ordinary first home buyers and just 2% for 5,000 single parents. There are 10,000 places reserved for regional house buyers.</p> <p>The expanded scheme will help some Australians buy their first home earlier, but for everyone else looking to buy a house, the extra demand created by the scheme risks pushing up prices even higher. </p> <p>And many renters won’t be able to find even the 5% deposit. Five per cent of $600,000 is $30,000.</p> <h2>Rent assistance assists less</h2> <p>If we really wanted to help low-income renters, we would boost rent assistance.</p> <p><a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance</a> is paid to pensioners, other beneficiaries and those receiving more than the base rate of Family Tax Benefit Part A who rent in the private rental market or community housing. </p> <p>Paid at the rate of 75 cents for every dollar of rent above a threshold until a maximum, it works out at up to for <a href="https://www.servicesaustralia.gov.au/how-much-rent-assistance-you-can-get?context=22206">$72.90</a> a week for a single and $68.70 for each member of a couple.</p> <p>It hasn’t kept pace with rent. Boosting it by 40%, (roughly $1,450 a year for a single), would restore it to where it was in relation to rent, albeit at a substantial cost – <a href="https://www.dss.gov.au/sites/default/files/documents/03_2022/2022-23_social_services_pbs.pdf">$2 billion per year</a>.</p> <p>If the new rate was linked to the rents low-income earners actually pay, rather than to overall inflation as it has been, renters would be protected in the future.</p> <p>Some argue this would lead to higher rents. But <a href="https://www.ahuri.edu.au/research/final-reports/342">that’s unlikely</a>. Most low-income renters first pay what’s needed to put a roof over their heads, then use what they have left to cover food and other bills, rather than offering more rent.</p> <h2>Rents needs properties</h2> <p>The other thing governments can do is to increase the number of homes.</p> <p>Australian cities are not delivering denser forms of housing – <a href="https://www.afr.com/link/follow-20180101-p57uw">townhouses and apartments</a> – in the quantities Australians say they want. </p> <p>The people who already live in a given suburb usually want it to stay as it is, whereas the people who would like to live there don’t get a say because they can’t vote in council elections. Their interests are left unrepresented, meaning housing isn’t built where it is needed.</p> <p>The Commonwealth can help drive change by offering the states <a href="https://grattan.edu.au/wp-content/uploads/2022/03/Grattan-Institute-Submission-to-the-PC-review-of-the-NHHA.pdf">incentives</a> tied to how well housing supply keeps up with population growth.</p> <p>This will only reduce rents slowly, but low-income renters stand to gain the most since they are the first to lose out in the scramble today, just as they seem to have lost out in the pre-election budget.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared in <a href="https://theconversation.com/renters-spend-10-times-as-much-on-housing-as-petrol-wheres-their-cost-of-living-relief-180702" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Real Estate

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What is petrol excise, and why does Australia have it anyway?

<p>One government, in <a href="https://www.beehive.govt.nz/release/government-cuts-25c-litre-fuel-excise-cost-living-relief-package" target="_blank" rel="noopener">New Zealand</a>, has already cut its fuel excise, by 25 cents per litre for the three months it hopes will be the worst of the oil price crisis, and in the <a href="https://www.businessinsider.com.au/democrats-gas-tax-holiday-cut-prices-biden-agenda-stalled-2022-2" target="_blank" rel="noopener">United States</a> and <a href="https://www.smh.com.au/politics/federal/scott-morrison-flags-tax-relief-as-petrol-hits-record-highs-20220314-p5a4cr.html" target="_blank" rel="noopener">Australia</a> there’s talk of the same sort of thing.</p> <p>Before considering whether it should be cut, temporally waived, or removed in this month’s budget, it’s worth reacquainting ourselves with what it is.</p> <p>As is the case with the goods and services tax, it isn’t explicitly quoted when we buy petrol or other fuels; it is rolled into the advertised price.</p> <p>At the moment the excise on standard unleaded petrol is <a href="https://www.ato.gov.au/Business/Excise-on-fuel-and-petroleum-products/Lodging,-paying-and-rates---excisable-fuel/Excise-duty-rates-for-fuel-and-petroleum-products/" target="_blank" rel="noopener">43.3 cents per litre</a>, an impost which itself is subject to the goods and services tax. This brings the total to 47.6 cents per litre, something that would have been significant a year ago when the price of petrol was lower, accounting for one third of the price.</p> <p>It is now less important, accounting for 22% of the price of petrol.</p> <p>The fuel excise is imposed by the Commonwealth government. As a matter of law and as required by the <a href="https://www.aph.gov.au/About_Parliament/Senate/Powers_practice_n_procedures/Constitution/chapter4#chapter-04_81" target="_blank" rel="noopener">Constitution</a>, all revenue raised by the Commonwealth goes into “one consolidated revenue fund”. But from 1926 to 1959 all or part of the fuel excise was <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0001/01RP06" target="_blank" rel="noopener">earmarked</a> for spending on roads.</p> <p>Since then, it has generally been available for any sort of spending – although the impression remains that it is a crude form of user fee for roads and associated government-funded infrastructure, and for maintenance of that infrastructure.</p> <h2>Effectively a road user charge</h2> <p>The excise is collected at the points of distribution from local refineries and importers rather than at the petrol pump, making it easy to administer.</p> <p>Making it much more difficult to administer are the substantial <a href="https://www.ato.gov.au/business/fuel-schemes/fuel-tax-credits---business/" target="_blank" rel="noopener">rebates</a> offered to off-road users of petrol and diesel, which have the effect of making it a charge for using roads. They cut the total takings from about <a href="https://budget.gov.au/2021-22/content/bp1/download/bp1_bs5.pdf" target="_blank" rel="noopener">A$20 billion</a> to <a href="https://budget.gov.au/2021-22/content/bp1/download/bp1_bs6.pdf" target="_blank" rel="noopener">A$11 billion</a>.</p> <p>State and territory governments impose another set of taxes on the use of motor vehicles. These include stamp duty on the registration, annual registration fees, the charge for drivers licences, and taxes on vehicle insurance. State taxes on the use of motor vehicles amounted to <a href="https://www.abs.gov.au/statistics/economy/government/taxation-revenue-australia/latest-release" target="_blank" rel="noopener">A$11.3 billion</a> in 2019-20.</p> <p>These taxes also go into general revenue, and with no specific link to state government decisions on road infrastructure and maintenance or the provision of services such as traffic police and hospitals.</p> <p>Taken together, the Commonwealth’s takings from fuel excise and the states’ takings from special motor vehicle taxes appear to <a href="https://www.pc.gov.au/inquiries/completed/productivity-review/report/productivity-review-supporting9.pdf" target="_blank" rel="noopener">roughly equal</a> their spending on roads and associated infrastructure and fall short of the total costs imposed by road users on others including the costs of noise, pollution and policing.</p> <h2>There are better ways to do it</h2> <p>In an ideal world we would charge explicitly for road use, pollution and congestion in the cities during peak hours.</p> <p>Fuel excise is an increasingly inappropriate way of charging for road use because more and more cars (including hybrids) are using less fuel per kilometre, and some (including all-electric vehicles) are using none.</p> <p>Some states, including Victoria, charge electric vehicles per kilometre travelled. Owners are required to provide a photo of their odometer and the fee is added to the <a href="https://www.vicroads.vic.gov.au/registration/registration-fees/zlev-road-user-charge" target="_blank" rel="noopener">cost of their registration</a>.</p> <p>While in the spirit of user charging, what Victoria and other states are doing is a limited first step.</p> <p>Ideally, and subject to considerations of simplicity and operating costs, the user charge would vary by weight per axle, aggregate weight and distance travelled, and perhaps by road type.</p> <p>Given the fixed cost of much road investment and maintenance, a modified version of current annual registration fees should continue.</p> <p>The combustion of petrol and diesel generates external pollution costs not considered by businesses and individuals in their use of motor vehicles.</p> <p>External pollution costs include particulates with adverse effects on health and smog, and emissions of carbon dioxide that contribute to climate change.</p> <p>A pollution fee that is much smaller than the current 43.3 cents per litre excise should be imposed on fuel used for both off-road and on-road purposes as part of a comprehensive price on greenhouse gas emissions associated with the combustion of fossil fuels.</p> <p>Congestion causes costs estimated to be in the tens of billions in terms of lost time, uncertainty, and extra fuel use, with only a small portion borne by the road user concerned. An important part of the reform package should be a congestion charge for peak hours along the lines suggested by the <a href="https://grattan.edu.au/report/why-its-time-for-congestion-charging/" target="_blank" rel="noopener">Grattan Institute</a>.</p> <p>This ideal set of changes would be imposed independent of the price of oil.</p> <p><span id="docs-internal-guid-9008afbb-7fff-2ede-941a-eb199ed3898b">This article originally appeared on The Conversation.</span></p>

Travel Trouble

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Are you ready for a bit of extra pocket money?

<p dir="ltr">Millions of Aussies will receive a bit of extra pocket money to help combat the rising cost of living. </p> <p dir="ltr">With the cost of petrol now sitting at $2.40 a litre, and fruit and vegetables having soared in price - Aussies are really struggling. </p> <p dir="ltr">As of March 21, singles under the age, disability support and carer payments scheme will receive an extra $20.10 a fortnight, adding up to $987.60.</p> <p dir="ltr">Couples under the same payments will receive an extra $30.20 a fortnight, adding up to $1,488.00.</p> <p dir="ltr">Senior Australians will also be able to access part of their pension earlier on as the asset test limit increases.</p> <p dir="ltr">For a single homeowner, it has increased by $6,750 to $599,750 and for a couple it has gone up by $10,000 to $901,500.</p> <p dir="ltr">Single Jobseeker recipients will receive a $13.20 jump in their pay up to $629.50, while those under Parenting Payment Singles scheme will get an extra $18.20 to $874.10.</p> <p dir="ltr">Help for renters will also be increased to $145.80 for singles a fortnight and $193.62 for families. </p> <p dir="ltr">Social Services Minister Anne Ruston described the 2.1 per cent increase to pension payments as the largest since 2013.</p> <p dir="ltr">“It gives us a higher weighting to fuel and transport costs in recognition of their significance to pensioners, which helps ensure the rate of the age pension maintains senior Australians’ purchasing power in the economy,” she said.</p> <p dir="ltr">Labor Leader Anthony Albanese however slammed the Federal Government for being out of touch and claiming the increase would help. </p> <p dir="ltr">“This government is so out of touch that they’re prepared to spin out there saying how well pensioners are going to be off,” he said.</p> <p dir="ltr">“When they get to the supermarket to buy products they find that everything‘s gone up.</p> <p dir="ltr">“The rise in the pension will not keep up with the costs of living. Pensioners are doing it really tough at the moment.”</p> <p dir="ltr"><em>Image: Shutterstock</em></p>

Money & Banking

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"Particularly appalling": Petrol prices set to soar before long weekend

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text redactor-styles redactor-in"> <p>Petrol prices are set to soar as Aussies get prepared for the long weekend.</p> <p>Peter Khoury from the NRMA in Sydney told<span> </span><em>Today</em><span> </span>that most capital cities will see prices above 140 cents a litre, and branded the hike "appalling".</p> <p>"It's particularly appalling," Mr Khoury said, adding "I would be social distancing myself from all companies from the next week or so at least.</p> <p>"The price cycles in Australia are now defying gravity. They are going up three times faster than they fall.</p> <p>"It's absurd in the middle of a pandemic to be doing this when we know so many families are struggling. I'm lost for words, to be honest."</p> <p>Sydney is tipped to hit 145 cents a litre, while both Brisbane and Melbourne will see prices of 150 cents a litre.</p> <p>Perth will hit 137.5 cents a litre and Adelaide is a bit lower hitting 139.2 a litre.</p> <p>Canberra and Hobart will hit 125.0 cents a litre and Darwin will have the nation's lowest prices at 119.2 cents a litre.</p> <p>Mr Khoury urged shoppers to use fuel comparison apps to get the most bang for their buck.</p> <p>"We're getting ripped off," he said.</p> <p>"In every one of those cities, there are a whole bunch of servos that are still sitting between $1 and $1.10 some $1.15, go and find them. Fill up there.</p> <p>"Drive past the $1.50 servos, don't give them your business, go to the cheaper servos... as long as we put our money into those servos we will keep having some degree of competition."</p> </div> </div> </div>

Money & Banking

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Deadly tiger snake found hanging around petrol tank

<p><span>A deadly tiger snake was found curled up around a petrol pump at a suburban service station in Melbourne.</span><br /><br /><span>The deadly reptile had completely wrapped itself around a bowser at the Coles Express in Nunawading, in the city's east on Wednesday.</span><br /><br /><span>Snake catcher Raymond Hoser was called in to remove the one-and-a-half metre tiger snake after it crawled out from under a car.</span><br /><br /><span>"They are deadly, you get bitten by a tiger snake and it's pretty intense… they're quite erratic," he told Nine.com.au.</span></p> <p><img style="width: 0px; height: 0px;" src="https://oversixtydev.blob.core.windows.net/media/7837920/snake-1.jpg" alt="" data-udi="umb://media/53b9fbe5696740d28697ba6db0affc5f" /><br /><br /><span>Mr Hoser said snakes will often crawl up the wheels of parked cars and into the engine cavity, and when the car stops somewhere else it will slither away "and no one knows any different".</span><br /><br /><span>However the snake proved to be unique after emerging from the vehicle and crawling around the gas pump.</span><br /><br /><span>Tiger snakes are the most common snake in Melbourne.</span><br /><br /><span>They are often found along the Yarra River and in the creeks that run off them, Mr Hoser said.</span><br /><br /><span>However, the expert has warned people not to approach the deadly creatures and said they will usually keep moving if they are not bothered.</span><br /><br /><span>"One wrong move by one wrong person is just destruction."</span></p>

Travel Trouble

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Harrowing near miss for bystander at petrol pump

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text "> <p>Shocking CCTV footage posted online shows a near-miss by a Tasmanian driver at a petrol station.</p> <p>A woman narrowly avoided serious injury as the driver in front drove off from the petrol pump with the fuel nozzle still attached to their vehicle.</p> <p>A black car is seen driving away from the pump, which causes the hose connecting the petrol bowser and the vehicle to stretch.</p> <p>The pressure quickly becomes too much and the hose snaps back from the vehicle, almost hitting a woman in the head.</p> <iframe src="https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2FTaspetroleum1%2Fvideos%2F1151317785225218%2F&amp;show_text=true&amp;width=734&amp;height=757&amp;appId" width="734" height="757" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media" allowfullscreen="true"></iframe> <p>The woman and another driver can be seen watching on in confusion, with Tasmania Petroleum hoping to track down who caused the incident.</p> <p>"Can anyone put us in touch with the driver of a Black Mitsubishi Challenger, Rego FH 0659?" the company wrote on Facebook.</p> <p>"And also the innocent bystander, driving a green Toyota hatch Rego FR1852, who was very lucky to walk away! We are sorry for your unfortunate bad experience on our site, and would like to give you some free fuel."</p> </div> </div> </div>

Travel Trouble

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Petrol prices to drop amid coronavirus outbreak

<p>Petrol prices could drop to as low as $1 a litre across Australia after Saudi Arabia started an oil price war with Russia.</p> <p>Global oil prices are expected to continue falling after Saudi Arabia and Russia failed to agree on oil production targets over the weekend, prompting Saudi Crown Prince Mohammed bin Salman to announce an increase in the country’s production from nine million barrels to 11 million barrels per day.</p> <p>Brent crude prices dipped 29 per cent from US$45 a barrel on Friday to US$32 a barrel on Monday.</p> <p>Some analysts predict oil prices could plummet to US$20 per barrel.</p> <p>The prices were already under pressure from COVID-19, which had reduced demand from China.</p> <p>Treasurer Josh Frydenberg said on Monday he had asked the Australian Competition and Consumer Commission to monitor the prices at the bowser.</p> <p>“They have assured me that they will not only maintain their monitoring role and the vigilance that that involves, but they’ll also be calling out any energy companies that don’t pass on the reduction in the wholesale price to the Australian consumer,” Frydenberg said.</p> <p>NRMA spokesperson Peter Khoury said the plunge was “certainly positive for motorists”.</p> <p>“We think the next [price drop] in the capital cities will be about 10 cents a litre for regular unleaded,” he told <em><a href="https://thenewdaily.com.au/finance/consumer/2020/03/09/oil-price-petrol-collapse/">The New Daily</a></em>.</p>

Money & Banking

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These easy tips will save you hundreds on petrol

<p>Fuel costs can put a major dent in the family budget, but fortunately there are plenty of things you can do to reduce your consumption.</p> <p>The recent spell of low fuel prices has been welcome relief for many of us who depend on the car for transport, but sooner or later they will start heading north again. It makes a lot of sense, therefore, to do whatever you can to improve fuel efficiency. This can not only save you money, it will also reduce your carbon footprint. Here are a few pointers on what you can do to reduce your consumption.</p> <p><strong>Can LPG or diesel save you money?<br /></strong>This is often a hotly contested debate and the many variables involved can make it difficult to compare, but there is a strong argument that both diesel and LPG can be more budget friendly.</p> <p>LPG certainly uses more fuel to drive the same distance as petrol due to the lower energy content of LPG, but the cost of LPG compared to petrol more than offsets this disadvantage. The downside of LPG is that a car fitted with LPG is more expensive to buy and the cost of converting a car from petrol to LPG is no longer subsidised by the government. This means that the cost benefit of the fuel will take some time to make up for the upfront cost of purchase, but if you are doing a reasonable distance every year then it could well be worth the switch.</p> <p>Diesel too can offer potential savings. It has gone a long way to shedding its image as a smelly and noisy way to get around, thanks to improvements in engine technology over recent years. Diesel engines are getting quieter and cleaner and are now available even in many smaller cars, so it is not surprising that they are taking an increasing share of the new car market.</p> <p>Fuel efficiency is one of the key reasons for this, with diesel having a significant advantage in economy if all other factors are equal. In days gone by the cost per litre of diesel was prohibitive compared to petrol, but this balance has now well and truly swung the other way.</p> <p>The cost of a diesel car will still be greater than its petrol equivalent, but as with LPG, the more driving you do the quicker you will claw back the extra upfront cost.</p> <p><strong>How reliable are the fuel efficiency labels?<br /></strong>If you have been shopping for a new car you will be aware of the mandatory labels that now appear on the windscreen. These supposedly provide an indication of the fuel consumption for both urban and “extra urban” (country) driving.</p> <p>The manufacturers are responsible for testing their own cars and this is done according to conditions set by Australian Design Rules. What many people don’t realise, however, is that they are not done on the road, but rather are done on a dynamometer with artificially created air flow to simulate actual driving conditions.</p> <p>The controlled guidelines for the test mean that they are indeed a good way to compare different vehicles relative to each other, but their usefulness stops there. Because the test conditions are so artificial, they bear little resemblance to actual realistic driving conditions and consequently the results are generally a lot more favourable than what you will experience in reality.</p> <p>In short – you can use them to compare efficiency between different cars, but don’t use them to plan your weekly fuel budget!</p> <p><strong>9 ways to drive for better fuel efficiency<br /></strong>When it comes to the actual driving of your car from week to week, there are many ways to make a big difference to your fuel consumption. Here are our top tips:</p> <p>1. Lazy gear selection in a manual car can chew through the juice. Avoid sitting in a low gear once revs are sufficient to change up and also avoid sitting in a high gear when the engine is straining to maintain revs. </p> <p>2. When driving an automatic stay alert when using the accelerator and ease off slightly when you can hear the engine getting ready to change up.</p> <p>3. Erratic braking and acceleration guzzles fuel, so drive smoothly with gradual acceleration and avoid rushing to the speed limit if you can see that the traffic ahead will likely require you to brake. The extension of this rule is, of course, to avoid driving in heavy stop-start traffic where possible. </p> <p>4. Don’t hesitate to switch off the engine if you are stationary for any length of time – leaving a car idling uses up more fuel than you may think.</p> <p>5. Speed matters. If you are driving a 110 kph your car will use a lot more than it would travelling at 90 kph.</p> <p>6. Items such as roof racks and spoilers can add significantly to air resistance and this extra load will cost you at the bowser, so remove unnecessary accessories if not being used. </p> <p>7. Tyre inflation is essential to optimum operation, so keep the pressure checked regularly</p> <p>9. You can expect to use up 10 per cent extra fuel when operating your air conditioner at speeds of over 80 kph. </p> <p>9. Regular maintenance to keep your car well-tuned is also essential to ensure the engine is running to its optimum performance and using fuel efficiently.</p> <p><em>Republished with permission of <a href="https://www.wyza.com.au/articles/money/how-to-spend-less-on-petrol.aspx">Wyza.com.au.</a></em></p>

Retirement Life

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“Fill up now”: Petrol prices continue to skyrocket

<p><span style="font-weight: 400;">Petrol prices have continued to rise by at least 30 cents a litre across Sydney and will continue to rise before eventually falling as little as one cent per day.</span></p> <p><span style="font-weight: 400;">“This time next week won’t be fun,” NRMA’s Peter Khoury told </span><a href="https://www.news.com.au/technology/innovation/motoring/fill-up-now-skyrocketing-sydney-petrol-prices-could-jump-another-20-cents-per-litre/news-story/59773b186d683232e75ed42d523ed0a9"><span style="font-weight: 400;">news.com.au</span></a><span style="font-weight: 400;"> on Saturday morning.</span></p> <p><span style="font-weight: 400;">The average price for regular unleaded in Sydney on Saturday was $1.45 per litre but motorists should “fill up now” before it rises even further.</span></p> <p><span style="font-weight: 400;">“They should have probably filled up earlier,” he said.</span></p> <p><span style="font-weight: 400;">The NRMA spokesman said there was a good spread of prices across the city and encouraged drivers to do their research “but do it now”.</span></p> <p><span style="font-weight: 400;">“We’re looking at another 20 cent jump in the average price in Sydney,” he said.</span></p> <p><span style="font-weight: 400;">“It’s going from to $1.37 (from 48 hours ago) to $1.66 per litre.”</span></p> <p><span style="font-weight: 400;">The average price for regular unleaded is expected to reach $1.66 by early to mid next week, according to NRMA’s Khoury.</span></p> <p><span style="font-weight: 400;">“At the moment, even though it’s going up, it’s better than it’s going to get,” he said, noting the slow fall could be “a cent per day”.</span></p> <p><span style="font-weight: 400;">“Sydney, Brisbane, Melbourne, Adelaide and Perth all fluctuate because they have price cycles,” he said.</span></p> <p><span style="font-weight: 400;">The rise is as a result of the price cycle going up as well as “what happened overseas” in Saudi Arabia.</span></p> <p><span style="font-weight: 400;">The drone and missile attacks on Saudi oil infrastructure on the 14</span><span style="font-weight: 400;">th</span><span style="font-weight: 400;"> of September knocked 5.7 million bpd (5%) of global oil supply, but the country was said to have restored 75 per cent of the production that was lost in the attacks.</span></p>

Money & Banking

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FILL YOUR TANK: Petrol prices set to surge after attack on Saudi Arabian oil plants

<p>Now is the time to fill up with petrol, as prices are set to surge by nearly 10 cents a litre.</p> <p>This is due to fears of a worldwide fuel shortage after a drone strike on Saudi Arabian oil plants.</p> <p>There were attacks on two plants on Saturday and they’ve knocked out more than half of Saudi oil crude output, or five per cent of global oil supply.</p> <p>There are also fears that as many as 150 million barrels a month could be lost due to the facility’s indefinite closure.</p> <p>For now, it remains unclear as to how King Salman and his son Crown Prince Mohammed bin Salman will respond to the incident.</p> <p>However, Peter Khoury from the NRMA told<em> <a rel="noopener" href="https://www.theaustralian.com.au/business/mining-energy/oil-prices-soar-after-attacks-on-saudi-arabia/news-story/41784e4737e9ab2167d75c7a34375630" target="_blank">The Australian</a> </em>that it’s normal for Australia to feel the effects of changing global oil prices.</p> <p>With petrol prices predicted to rise by up to 20c a gallon, this could mean that Australians could see a spike of 9 cents a litre.</p> <p>“The sad reality is when something like this happens, more often than not it has an adverse affect on prices and we feel it here at home,” he said. </p> <p>The average annual price of petrol is currently 7.0 cents per litre higher than last year, according to the report by the Australian Competition and Consumer Commission (ACCC).</p> <p>Retail petrol prices increased significantly in the June quarter of 2019, with the five largest cities in Australian being hit the hardest.</p> <p>In Sydney, Melbourne, Brisbane, Adelaide and Perth, unleaded petrol averaged at 141.2 cents per litre in the last year.</p> <p>The ACCC has said that the main driver of higher petrol prices is the depreciation in the AUD-USD exchange rate.</p>

News

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Are you being ripped off? The one petrol station you should stay away from

<p>Petrol prices have often been a sore spot for Aussies who feel the pinch of higher prices on their wallets.</p> <p>However, <em><a rel="noopener" href="https://twitter.com/9NewsSyd/status/1098490712650178560" target="_blank">Nine News</a></em> has reported that drivers are being ripped off with petrol station prices, with some servos charging nearly 40 cents more than others in the same suburb.</p> <p>There is one chain of petrol stations where drivers often feel the pinch, as Coles Express stations consistently sell more expensive fuel.</p> <p>Where you’ll feel the pinch at the bowser:</p> <ul> <li>Auburn, NSW: 36.2 cents more a litre between independent and BP stores</li> <li>Farfield, NSW: 34.2 cents more a litre between independent, Caltex and 7/11 stores</li> <li>Campbelltown NSW: 32.2 cents more a litre between Caltex and independent fuel stores</li> </ul> <p>If you’re lucky enough to live in Manly in NSW, you’re least affected by the price increase as there’s only an 8 cents difference between 7/11 and Metro fuel stores.</p> <blockquote class="twitter-tweet" data-lang="en-gb"> <p dir="ltr">It's one of the biggest strains on household spending... now <a href="https://twitter.com/hashtag/9News?src=hash&amp;ref_src=twsrc%5Etfw">#9News</a> can reveal an exclusive snapshot of the cost of petrol across Sydney. <a href="https://twitter.com/JulieSnook?ref_src=twsrc%5Etfw">@JulieSnook</a> <a href="https://twitter.com/hashtag/9News?src=hash&amp;ref_src=twsrc%5Etfw">#9News</a> <a href="https://t.co/UxTfiSu0kJ">pic.twitter.com/UxTfiSu0kJ</a></p> — Nine News Sydney (@9NewsSyd) <a href="https://twitter.com/9NewsSyd/status/1098490712650178560?ref_src=twsrc%5Etfw">21 February 2019</a></blockquote> <p>Peter Khoury from the NRMA warned motorists to avoid Coles Express petrol stations, which is known for being the most expensive in comparison to other major fuel outlets.</p> <p>Independent petrol stations have also warned motorists that if they are left unsupported, it will impact your pockets as they’re forced to pay a higher price for fuel.</p> <p>Have you noticed a price difference in petrol your area? Let us know in the comments.</p>

News

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Cost of petrol FINALLY set to fall after weeks of soaring prices

<p>Aussie motorists can finally expect to see the cost of petrol fall across the country after weeks of climbing prices.</p> <p>The relief follows the average price of petrol reaching a four-year high and motorists being forced to pay up to $1.63 per litre in parts of the country.</p> <p>On average, drivers in Sydney, Melbourne, Perth and Adelaide have been paying roughly $1.40 per litre. In Canberra, motorists have been paying nearly $1.50 per litre.</p> <p>Petrol prices are expected to drop by the June long weekend and drivers are recommended to fill up then.</p> <p>The NRMA’s Peter Khoury predicted four cents to be taken off the price per litre as the cost of a barrel dropped by $4 last week.</p> <p>“After a year almost, of consistent world oil price increases, this is finally starting to turn,” he told Today. </p> <p>“Finally, finally we've got some relief coming.”</p> <p>Since June last year, world oil prices have increased by 67 per cent.</p> <p>CommSec chief economist Craig James advised motorists to utilise fuel price websites and apps in order to shop around for the best deal.</p> <p>"Our first industry report showed that retailers' prices are not the same — retailers do price differently and have different strategies to get you to fill up with them," Mr Sims told <a href="http://www.abc.net.au/news/2018-06-05/petrol-prices-hit-four-year-high-for-australian-motorists/9836366" target="_blank"><em><strong><span style="text-decoration: underline;">ABC News.</span></strong></em></a></p> <p>"Yesterday lunchtime, the available fuel websites and apps indicated that the range between the highest and lowest-priced sites was over 20 cents per litre (cpl) in Sydney and Adelaide, around 15cpl in Brisbane and Perth, and around 10cpl in Melbourne."</p>

Money & Banking

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The cheapest – and most expensive – places to fill up your car

<p>Coles Express has the most expensive average petrol price in Australia, charging 4 cents a litre more than Woolworths and 9 cents per litre extra compared with the ­cheapest servo chains, according to the consumer watchdog.</p> <p>The Australian Competition and Consumer Commission (ACCC) has released its <span style="text-decoration: underline;"><strong><a href="https://www.accc.gov.au/system/files/1411_Report%20on%20petrol%20prices%20in%202017_FA.pdf" target="_blank">latest petrol report</a></strong></span>, which analysed the annual average petrol prices in Sydney, Melbourne, Brisbane, Adelaide and Perth for 2017.</p> <p>The report found a large average price differences between retailers, ranging from 9.5 cents per litre in Sydney to 3.6 cents per litre in Melbourne. The gap between the highest price and the lowest price had also grown significantly in the last decade.</p> <p>Based on prices across 2017, Coles Express was the most expensive in each city by between 12-18 per cent above the average.</p> <p>The cheapest retailers were Speedway in Sydney, United in Melbourne and Brisbane, Liberty in Adelaide and Vibe in Perth.</p> <p>The results show that if you bought 60 litre of petrol a week from Coles you would pay $300 more per year than if you had bought from Speedway, and $125 extra compared to the cost at Woolworths petrol stations.</p> <p>“Our analysis of petrol prices shows the range between major retailers with the highest average price and lowest average price varied across each city considerably,” ACCC chairman Rod Sims said in a statement on Sunday.</p> <p>“Independent chains were the lowest priced in each of the five major cities and Woolworths was generally below the market average price in most cities.</p> <p>“Average prices at Coles Express were the highest in all five cities, and average prices at retail sites where BP and Caltex head office sets the retail price were generally above the market average price.</p> <p>“The majority of consumers tend to go to the same petrol station every time they fill up. This research shows it might be time to consider which station to fill up at.”</p> <p>Mr Sims said he was surprised by just how much difference there was between the cheapest retailer and the most expensive, given the fuel being sold was almost always identical.</p> <p>“I was surprised … that Coles and BP would be that much higher priced than Woolworths, 7-Eleven and United on the one hand and then the true independents on the other,” Mr Sims told The Sunday Telegraph.</p> <p>“Those differences are huge — we are talking up to 9c/L.”</p> <p>Mr Sims said it was not the case that cheaper stations were selling inferior quality petrol.</p> <p>“You don’t have to worry about going into these places and getting some combination of fuel and water,” he said.</p> <p>“They are getting their fuel from the majors. It usually comes from the same tank (as the petrol sold by BP and Coles).”</p> <p>There are a number of apps available to find the best fuel deal, including<span style="text-decoration: underline;"><strong> <a href="https://itunes.apple.com/au/app/7-eleven-fuel/id1032594453?mt=8" target="_blank">7-Eleven</a></strong></span>, <span style="text-decoration: underline;"><strong><a href="https://itunes.apple.com/au/app/woolworths-fuel/id886560408?mt=8" target="_blank">Woolworths</a></strong></span>, NRMA’s <span style="text-decoration: underline;"><strong><a href="https://www.mynrma.com.au/membership/my-nrma-app" target="_blank">MyNRMA</a></strong></span> and RACWA’s <span style="text-decoration: underline;"><strong><a href="https://rac.com.au/car-motoring/rac-go" target="_blank">RAC Go</a>.</strong></span></p> <p>In NSW and Northern Territory, retailers are required by law to report real-time price data, which apps like <span style="text-decoration: underline;"><strong><a href="https://www.fuelcheck.nsw.gov.au/app" target="_blank">FuelCheck</a> </strong></span>and <span style="text-decoration: underline;"><strong><a href="https://myfuelnt.nt.gov.au/" target="_blank">MyFuelNT</a> </strong></span>use. The <span style="text-decoration: underline;"><strong><a href="https://motormouth.com.au/" target="_blank">MotorMouth</a></strong></span> app uses national data supplied by industry body Informed Sources, while the <span style="text-decoration: underline;"><strong><a href="http://gasbuddy.com.au/" target="_blank">GasBuddy</a> </strong></span>app relies on crowdsourced data.</p> <p>A Coles spokesman said, “Coles Express always seeks to provide a competitive fuel offering to our customers, and our convenience stores lead the market in value on a range of food, drinks and everyday household needs at supermarket prices.</p> <p>“In addition to the 4c/L fuel discount voucher received when spending a minimum $30 in Coles supermarkets, customers can also save 10c/L by spending a minimum $20 in Coles Express stores. The discounts can be used separately or combined to save a total of 14c/L.”</p>

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Do you save money by half-filling your fuel tank?

<p><em><strong>Tim Trudgian, Research Fellow in Mathematics, Australian National University asks what is the best strategy to save money at the bowser.</strong></em></p> <p>There are <span style="text-decoration: underline;"><strong><a href="http://www.racq.com.au/cars-and-driving/cars/owning-and-maintaining-a-car/fuel-saving-tips" target="_blank">many suggestions</a></strong></span> for saving money such as when and where to fill up, what time and day of the week and how to predict the highs and lows of the <span style="text-decoration: underline;"><strong><a href="https://www.accc.gov.au/consumers/petrol-diesel-and-lpg/petrol-price-cycles" target="_blank">price cycle</a></strong></span>.</p> <p>One theory on how to conserve fuel is to put less of it in your tank. The thinking is that you carry around less weight in the car, which means the engine does not have to work as much, which means a saving on fuel.</p> <p><strong>Does less save more?</strong></p> <p>But how much of a saving? And is this worth your while? This question has been asked (see <span style="text-decoration: underline;"><strong><a href="http://www.utsandiego.com/uniontrib/20080105/news_lz1dd5click.html" target="_blank">here</a></strong></span> and <span style="text-decoration: underline;"><strong><a href="https://answers.yahoo.com/question/index?qid=20100507043855AAFaauR" target="_blank">here</a></strong></span> as typical examples), but not satisfactorily answered.</p> <p>To answer this we need to look at the fuel economy of the car. This is often quoted as litres per 100km, say, 6L/100km (typical for a small car running basic unleaded petrol). This means that under some given conditions, on average the car will use 6L of petrol to drive 100km.</p> <p>The conditions (sometimes stated in the quote, but often not) could be for: city driving, highway driving, two people in the car, etc. The more weight in the car, the harder the engine has to work to move the car at the same speed, and hence the worse (or higher) the fuel economy.</p> <p>One <span style="text-decoration: underline;"><strong><a href="http://www.drivealuminum.org/research-resources/PDF/Research/2008/2008-Ricardo-Study.pdf" target="_blank">study</a></strong></span> by consultants Ricardo Inc examined the effect of extra weight on fuel economy.</p> <p>Roughly, it found the fuel economy increases by between 1% and 2% for every 100 pounds (43.5 kg) of weight added inside the car. This figure does not factor in any extra weight outside of the car, such as roof racks, trailers or sidecars.</p> <p>Suppose we took the upper limit, 2%, and assumed a full tank of 60L in a car that is rated at 8L/100km (a typical family car).</p> <p><strong>Crunching the numbers</strong></p> <p>Since petrol has a density of roughly 720 grams/L the weight of the full tank of fuel is about 43.2kg. So, roughly, your fuel efficiency will drop to 8 x (1 + 0.02 x 43.2/43.5), which is roughly 8.16L/100km.</p> <p>As you drive, you use up some fuel, and hence carry less weight in the car. When you have used half a tank your fuel efficiency is now roughly 8.08L/100km: the car is travelling more efficiently than it was with a full tank.</p> <p>Suppose that we fill up the tank and see how far we can drive until we run out of fuel. Call this full-once: we have filled the tank with fuel once.</p> <p>Consider our filling the tank half-way, driving until we run out of fuel, then filling the tank half-way again, and driving once more until we run out of fuel. Call this half-twice: we have filled the tank half-way, twice.</p> <p>We will certainly travel further in the half-twice scenario. Why? We have used the same amount of fuel, but in the full-once scenario we had to suffer poor fuel efficiency (8.16 L/100km) at the start of our journey.</p> <p><strong>But how much do we save?</strong></p> <p>The actual price of fuel does not matter; the question is how much further will we travel in the half-twice scenario? This is not a simple high-school algebra calculation.</p> <p>The rate at which we are consuming fuel decreases as the weight of the fuel decreases. We can use some first- or second-year university mathematics and solve a differential equation to find the total distance covered.</p> <p>Assuming a fuel efficiency of 8L/100km, density of petrol at 720g/L, a loss of 2% of efficiency per 43.5kg, and a 60L tank, we find that we cover roughly 3.5km more in the half-twice scenario: not a lot by anyone’s standards.</p> <p>This is all well and good, but there is one obvious drawback to the half-twice scenario: we have to make an extra visit the fuel station and this costs us time.</p> <p>So, rather than figure out the distance we save in the half-twice scenario, we should figure out the time we save.</p> <p>Suppose we were driving at an average of 40kmh – this is lower than the urban speed limit owing to traffic congestion, slowing down, stopping at lights etc.</p> <p>Under the same assumptions as above (that gave us the extra 3.5km), this means we save a little over five minutes in the half-twice scenario. Again, not very much.</p> <p>The situation changes slightly for diesel cars. A tank of diesel weighs more than a tank of petrol (and so the savings should be increased), but according to the Ricardo study, the affect of weight on fuel economy is less pronounced.</p> <p>Diesel engines are also more efficient, but even with small fuel efficient diesel cars, such as <span style="text-decoration: underline;"><strong><a href="http://rac.com.au/news-community/news-and-reports/publications/rac-enews/rac-enews-2010/top-%2020-most-fuel-efficient-cars" target="_blank">those suggested</a></strong></span> by the Royal Automobile Club of Western Australia, you cannot save more than five minutes.</p> <p><strong>Bigger is better</strong></p> <p>We can demonstrate a significant saving if we look at larger vehicles. Take a Toyota <span style="text-decoration: underline;"><strong><a href="http://www.toyota.com.au/landcruiser-70-series/specifications/troop-carrier-gxl" target="_blank">Landcruiser 70 Troop Carrier GXL</a></strong></span>: this is a diesel engine with an urban fuel economy of 14.3L/100km.</p> <p>You make a saving here, not because the car is inherently efficient, but because its fuel tanks are enormous: it comes with two 90L tanks.</p> <p>Filling both tanks means an awful lot more fuel is carried around, and hence a more pronounced saving. Assuming an average speed of 40kmh, you would save nearly 14 minutes by filling up half as much, twice as often.</p> <p>If time is important to you then you can achieve savings of between five and 14 minutes – depending on the size of your vehicle – by only filling your tank to the half-full mark. If not, then you will need to find another strategy to save on your fuel costs. Happy hunting.</p> <p>Do you agree with this advice?</p> <p><em>Written by Tim Trudgian. Republished with permission of <a href="http://www.theconversation.com" target="_blank"><strong><span style="text-decoration: underline;">The Conversation</span></strong></a>.</em><img width="1" height="1" src="https://counter.theconversation.com/content/36260/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation"/></p>

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