Petrol prices

The latest research reveals that 54 per cent of drivers discover that when they pull up to the bowser, the real price of petrol is more expensive than the price advertised on service station price boards.The research, conducted by the NRMA, comes in light of the Australian Government’s proposed changes to service station price boards, pushing for the advertisement of all fuel prices, excluding the discounted shopper-docket price.NRMA motoring and services president Wendy Machin says, "this issue strikes at the heart of transparency in the petrol industry and is about putting some power back in the hands of the motorist.”"More than two-thirds say price boards don't give them the information they need and one-in-four are driving off without filling up after they get to the bowser and discover the real price.”57 per cent of those surveyed believe fuel price transparency would push competition between oil companies. Machin says changes will “encourage service stations to fight harder for customers driving past as it will mean the prices of all their fuels will be on display for all to see.”The survey of over 800 people was conducted by the NRMA across NSW and the ACT. 

A study has found 58 per cent of Australian drivers have consciously started driving more smoothly – and reducing hard acceleration -- to save fuel. The survey of 2119 motorists by Canstar Blue found Aussies are also taking other measures to reduce fuel bills.Of the survey respondents, 40 per cent are turning off the car’s air conditioner, while a further 20 per cent considered ditching their current cars in favour of a more economic option – a smaller car, bike or scooter.Canstar Blue Manager, Rebecca Logan says motorists are more conscious about petrol prices and tend to favour independent service stations more often.“Given renewed concerns about the world economic outlook, it is expected motorists will remain sensitive about petrol prices despite a slight drop predicted by economists,” says Logan.

An independent competition watchdog investigation into petrol price collusion may be more effective than a parliamentary inquiry, says shadow treasurer Joe Hockey. Australian Competition and Consumer Commission (ACCC) petrol commissioner Joe Dimasi said on Thursday the industry had been put on notice about arrangements that may breach the Competition and Consumer Act. "There has been an inquiry under all governments into petrol virtually every 12 to 18 months, so how this will be different I don't know," Mr Hockey told the Seven Network on Friday."But I'd like to think given the ACCC's initiated this one instead of politicians, that in fact, they will get to the bottom of it. "People are frustrated with the enormous volatility in prices." Labor frontbencher Tony Burke said repeated inquiries into the oil industry had failed to uncover whether price collusion was occurring."There's been attempt after attempt to get in behind what's happening with petrol prices and I don't think anyone has nailed the right way," he told the Seven Network. "To make sure that there's not price gouging, I think, is something that lies at the heart of what everybody expects." The ACCC is concerned that possible arrangements between the oil giants is hampering price competition. Australian law bans contracts, arrangements or understandings that cause or are designed to erode competition.

Motorists may be set for some relief at the bowser after average petrol prices fell from a three-and-a-half-year high last week.The average price of retail petrol fell by two cents to 150.2 cents a litre in the week ending April 29, according to data from the Australian Institute of Petroleum.CommSec economist Savanth Sebastian said a recent fall in regional and wholesale petrol prices should ensure further falls in the next seven to 10 days.He expects the national average pump price to fall by four cents a litre in the next fortnight."While it has certainly been a tough few months for motorists, it does seem like that a reprieve is around the corner," Mr Sebastian said on Monday.Over the past month, regional oil prices fell by almost $US12."When you take into consideration that the Aussie dollar has managed to hold up relatively well over the same period, it certainly points to a pretty sharp fall in pump prices," Mr Sebastian said. 

Cars will improve their fuel economy by 18 per cent in the next five to 10 years, according to a joint Finnish/American study.Savings will be made by using slick new surfaces on the inside of your engine, lubricant additives, low-viscosity lubricants and low-friction tyres inflated to pressures higher than normal. A joint study by VTT Technical Research Centre of Finland and Argonne National Laboratory (ANL) in USA has found these technologies can reduce friction by anything from 10 to 80 per cent in various components of a car.The study predicts that reducing friction will lead to fuel savings and reduced emissions up to 18 per cent within the next five to 10 years and up to 61 per cent within 15 to 25 years. Researchers have found that friction accounts for a third of all energy loss in a car. Together with other losses through cooling, air resistance and exhaust emssions, only 21.5 per cent of the energy output of the fuel is used to move the car.Their study found that friction can be reduced by 10 to 50 per cent by using new surfaces inside engines such as diamond-like carbon materials and tiny materials called nanocomposites.A further 25 to 50 per cent of friction can be reduced by laser texturing to etch a microtopography on the surface of engine internals to channel lubricant and reduce internal pressures, reducing fuel consumption by 4 per cent. Ionic liquids made of electrically charged molecules that repel one another will prodice a further 25 to 50 per cent reduction in friction. 

Since word got out that the government was considering cutting back on the $2 billion handout to resource companies known as the Fuel Tax Credit scheme, there has been the normal outburst of complaint from the industry’s lobbyists.In last week’s Financial Review, it was Australian Petroleum Production & Exploration Association’s turn to insist that any cutbacks to this boondoggle would result in risk to “billions of dollars in investment in oil and gas development”. If this sounds familiar, it’s because you’ve definitely heard it before.When faced with the original mining tax, the Minerals Council claimed it would drive miners to other countries to dig up minerals, creating the now-mythical “sovereign risk”.Similarly, groups like the Business Council claim a price on pollution will eviscerate the economy, driving businesses broke and “exposed” industries offshore. The same, tired, argument was wheeled out last week when some of the country’s most profitable companies were asked to contribute a little bit to the global effort to cut down our use of fossil fuels. It was inevitable that at some point Australians would stop listening, and it appears that that time is now. What is the difference this time?Read full story here

The first whack is in ever-climbing vehicle registration fees from state government; the second is from an unrelenting fuel excise which the Federal Government would love to increase but can’t.Read the full story here

By buying smaller and greener cars, Aussie motorists are on track to hit a national CO2 target set during the 2010 election campaign, following another 2.8 per cent reduction in pollution during 2011.The national average fell to 206.6 grams for every kilometre travelled last year, well down on the 252.4-gram average a decade ago and closing on the 190 grams/kilometre target set for 2015. The payoff for drivers is a fuel economy improvement that mirrors reduction of CO2 gas."We'll get to 190 well ahead of the government's information election campaign commitment. We are going to get there a long time before 2015," the chief executive of the Federal Chamber of Automotive Industries, Ian Chalmers, said."We would have done it whether she was elected or not. The automotive industry is committed to reductions in emissions, regardless of which party is in government. That's the important issue."Chalmers said the accelerating move to smaller vehicles, and smaller engines in most size classes, was helping to drive the greening of Australia's fleet."There is no doubt that what's driving this is that people are choosing, in increasing numbers, smaller and more fuel efficient cars. This also has a pay-off in fuel economy," he said. The 2011 figures, which are weighted for the size of the Australian carpark, show cars led the CO2 improvement with a 4.5 per cent drop last year, as Toyota Camry-sized medium cars did the best with a 6.1 per cent improvement, although both passenger SUVs and trucks also recorded a fall.The only area to record an increase last year was upper large cars, described by Chalmers as "Maybach-type" ultra-luxury cars."What's also happening, right across the whole vehicle fleet, is steady, inexorable progress towards lower emissions and fuel economy. Almost every vehicle now is coming with reduced fuel economy. There is also increasing take-up of diesel as an engine option. In the past it was really reserved for heavy vehicles and trucks, not cars that mums and dads would drive."

Shell has predicted that oil prices could fall to about $70 a barrel from current levels above $110, citing high volatility in the economy and energy markets.Australian petrol prices fluctuate according to the world price of oil and are currently soaring over $1.50 a litre.Royal Dutch Shell boss Peter Voser revealed that 2011 profits rose 54 per cent last year to $28.6bn, but said they estimated oil prices would slip "inside a $50-$90 range'' this year.He blamed "unprecedented geopolitical events" such as the Japanese earthquake, eurozone crisis and the Arab spring for a slide in oil demand and a subsequent drop in prices last year."The global economy and energy markets are likely to see continued high volatility," he said.Motor Trades Association of Australia (MTAA) boss Richard Dudley says world oil prices will "always have a considerable beating on the price of fuel here"."However, what we are more concerned about is the discounting war by the two supermarket giants," he says.Dudley says discounting over the holiday period had blown out to up to 25c a litre, but had since increased to 35c if motorists also buy alcohol."These are just temporary discounting activities but what we are looking at a future where the independents are forced out and motorists will be at the mercy of a duopoly dictating market prices. We have lost thousands of index retailers over last decade and about 2500 have left the industry in Victoria alone. Genuine competition in the market is what we want."

... another one before the weekend if recent trends hold.Average prices jumped from 136.7 cents a litre to 144.1 cents last Wednesday night. If the timing is the same this week, the rising price will skim more money out of our wallets again by Australia Day on Thursday. And for those planning a four-day weekend, the pain at the pump could get worse. According to the RACV website, petrol prices will likely jump again on Friday - and remain high on Saturday as well. But it's not set in stone, as earlier this month prices peaked on Monday, January 9, when many people returned to work, before a gradual decline until last Wednesday.