We are living above our means because we import a lot more than we export even
despite the recent mining boom. We import about $37 billion of crude oil, petrol and diesel annually.
When oil was $20 bbl up to 1997 we were a net exporter of oil and as soon as the price
took off we then became a major importer. We have left our petroleum needs to multinational oil companies for too
long and successive Governments seem to think that everything is OK so long as fuel excise and GST is collected
at a rate of about 52c/litre.
Mr Costello struck a sweetheart petrol and diesel pricing benchmark deal.
Our petrol and diesel price is determined by:
The Singapore wholesale price+transport cost from Singapore refinery to wharf
+loading and shipping to Australia+insurance+ evaporation+unloading in Aus
+wholesale margin+marketing margin+distribution cost + 38c excise+Retail margin
+GST .......and there you have it folks............a piece of piss!
There are 3 interesting things about this formula:
(a) Since it was struck in July 1997 we went from being a net exporter of oil to being a massive importer
(b) That everything beyond the oil's arrival in Australia is outside the aegis of the ACCC because it is outside the country......not bad, eh, for the Oil Companies?
(c) The Oil Companies haven't complained; only consumers.
The Government has to simply wake up and do what the Yanks did in 2009 when oil peaked at $150/ bbl;
that is, put legislation in place with a target date to have Australia self sufficient in oil. Australia is a huge country
with the centre being ocean bed (the source of oil) millions of years ago.
I realise that post Mabo that Oil Companies are greatly impeded in their exploration and drilling
activities and , again, our Government should standardise legislation so that prospectors can
bottom line Native Title obligations before they begin.
To turn around our Balance of Payments by $37 Billion a year would go a long way in defraying out massive debt
and provide all Australians with a better standard of living.
