E85 price.

[Geoff6666]

Does anyone know how the price of United E85 is determined?
I've been using it for a few years now, and been really happy to use it!
Higher octane.
Cleaner burning.
Australian made.
Lower price.
. . . . . . until now.
When fuel prices went up a couple of years back they put up E85 which I thought was wrong!
Then when fuel prices went down they didn't reduce the E85??
I filled up yesterday and it was up another 20c per litre!!!
WTF!!!

 

[426Cuda]

Yeah I've noticed that too. Was $1.51 last weekend. Same ptice as their 98. They really are starting to treat it like V8 Supercar fuel . Pure profiteering. I won't buy it at these prices. I can buy BP 98 considerably cheaper than that.

 

[VS 5.0]

E85 is 199.9 in Perth at the moment compared to metro average for 98 of 120.1.

 

[Skylarking]

Aussie wholesale fuel prices are benchmarked against Singapore MOGAS 95 petrol prices (or Malaysian TAPIS crude?). I believe its defined within Aussie legislation that initiated the world parity petrol pricing scheme many many moons ago.

Interestingly, pre COVID issues TAPIS crude was trading at 80USD a barrel @ 0.70AUD/USD ($114/barrel). In the last month, TAPIS crude has gone from 55USD @0.66AUD/USD ($83/barrel) to a low of 24USD @ 0.56AUD/USD ($43/barrel) with little being reflected in retail petrol prices. But over the last few days it increased to 28USD @ 0.59AUD/USD ($47/barrel).

The drop in price is ignored and/or delayed while that later marginal increase is all the justification needed by those that run the market to instantly raise prices at the bowser.

Petrol prices should have dropped to $0.80/litre if prices were truely reflective of crude price costs. There should be public outrage at such extortionate behaviour and we should all be voicing our disgust at the government for giving away our resources at a low preferential rate to some os subsidiary based in a tax free or low tax jurisdiction.

Anyway,I think you get the drift that we are being shafted on petrol prices. And E85 being perceived as possibly a performance fuel would command a premium thus likely benched against dinosaur juice plus a nice margin.... capitalist market and all that....

 

[figjam]

Don't forget to factor in the various Govt taxes and excises.
A litre of imported petrol at 5c litre will cost the same as a 50c litre for transporting it into the country and distributing it.
Our oil and fuel prices will never reflect the base cost per barrel, unless we are self sufficient in drilling for it, refining it and eliminating Govt taxes.

 

[Holden17]

North Brisbane...United E85 $169.9.

In other fuels, as usual Costco is the only company being anything close to not ripping off...
Costco: 98 for 112.0, E10 for 88c (91 not available)
Best of the rest: 98 for high 120s to mid 130s, E10 for 105.9, 91 for 109.7

For almost a fortnight Costco98 has been only 2 or 3 cents more than 91 anywhere else. Shame I’m not going anywhere so need for petrol.

 

[kleanphil]

The local Metro here has E10 for 89.9c , they have had a queue out on the road for for the last 3 days for there cheap fuel , they don't do E85, I managed to jump the queue , 6 cars , thanx to positioning , and yes I used E10 , but I do 100klm + each day and any saving is good
EDIT: Goldy price for E85 is $169.9

 

[_R_J_K_]

Does anyone know how the price of United E85 is determined?

United (or any other fuel provider for that fact) pick a price and then charge that price to customers, regardless of cost of production. If price was determined by some other entity then petrol would be nowhere near as expensive as it is now. Would also doubt most of the ethanol found in E85 is from Australia either, far more likely to be from Brazil.

 

[Milo 6.0]

Yep petrol hasnt been this cheap for years,nowhere to go though,both my cars are full of caltex 98,cost me about 1.22 last time i think.

 

[Skylarking]

Don't forget to factor in the various Govt taxes and excises.
A litre of imported petrol at 5c litre will cost the same as a 50c litre for transporting it into the country and distributing it.
Our oil and fuel prices will never reflect the base cost per barrel, unless we are self sufficient in drilling for it, refining it and eliminating Govt taxes.

From what i've read, the crude oil price accounts for 90% of the cost of producing a refined fuel. That'd leave the rest being refining, distribution and tax costs, bla bla bla..

As such, crude oil price gives a good indicator as to the retail price movements we as consumers should see (taxes included). If crude price drops 70%, as has been the case, there should be a proportionate drop in the retail price. Unsurprisingly, the retail price is slow to react to a downward crude price trend but lightning fast on the upswing. Sadly we've yet to see anything close to a proportionate drop in this cycle regardless of any expected lag.

Simply put, there is profiteering and a lack of competition that is occuring which the government wont address the issue. As is, the government has hude cost issues to worry about NOW due to the COVID19 spend but even in better times they've chosen to ignore fuel pricing becasue they benefit from it via their high taxes.

At the end of the day, look at the graph "Figure 1" in this government report (i haven't read the report myself but the graph is telling).

According to the graph in this government report, when WTI crude was at $100AUD/barrel the retail price opetrol in Sydeny was at $0.60/litre*. Let that sink in for a bit... And taxes haven't appreciably changed since 2003.

Given WTI crude is almost always cheaper than TAPIS crude i quoted in my post above, but ignoring that fact, TAPIS is currently @ $47AUD/barrel, the graph should give some clear indicatins as to pricing now. So what price should we be paying for unleaded in 2020 when TAPIS is @ &47/barrel? maybe $0.30/ltr*? ... not the currently asked for $1.30 odd (give or take the 20c +/- swings).

There is a lot more gouging going on that what people realise and it can't be factored by taxes and distribution costs... Time for people to wake up...


* i remember petrol prices were around 80-90c/l and in some cases almost $1/l in early 2003 when i took a drive along the hlaf of the eastern seaboard. in that context current prices could be as high as $0.50/l