Fuel Price

Just bought 10.6 L of diesel (about a half tank) for the smart in Nanaimo BC for $2.069/L. That's 8 cents CHEAPER than unleaded. That will take me the better part of 300 km.
 
There was a feared reduction in world oil production that has not come to pass but world oil trade has been disrupted by sanctions and price is remaining high. Directions of oil flows have changed with more Russian oil going to China and India but Russia remains a major world supplier. Bloomberg reports Russian oil exports increasing in April with 43% going to Europe and returns 50% up on last year. OPEC members are not keen to increase production which would lower prices. Politicians make loud public statements but industry finds work arounds to keep energy supplies flowing. Status of Australian fuel imports from refineries such as in South Korea which is supplied by Oskol oil from Sakhalin 1 is unclear but Shell points out there is no way of determining the oil stock source of refined product. The two tanker loads of Russian crude that came to Australia after the ban was announced were probably Oskol. There is some industry concern about shortages next northern autumn. Talk of shutdowns of Russian exports to the rest of Europe cause nervous spikes in prices and scary futures contracts.
There is pessimism about Viva keeping the Geelong refinery open on government subsidy. That would leave Australia with one refinery in Qld. Interesting times indeed.
 
Harking back a few days, RON numbers are, as I understand it, simply a scale of resistance to detonation.
If your car does not have a compression ratio which requires high RON fuel, there is zero advantage in using a higher RON fuel, than the manufacturer specified.

I see that it is commonly spoken about on the assumption that if you buy higher RON fuel, you will get better fuel economy.
That, I believe, is not the case. If the label on the filler says "minimum 91 RON" then run it on 91. Or, even better, E10, which is the cheapest. That's all I use.
 
Harking back a few days, RON numbers are, as I understand it, simply a scale of resistance to detonation.
If your car does not have a compression ratio which requires high RON fuel, there is zero advantage in using a higher RON fuel, than the manufacturer specified.

I see that it is commonly spoken about on the assumption that if you buy higher RON fuel, you will get better fuel economy.
That, I believe, is not the case. If the label on the filler says "minimum 91 RON" then run it on 91. Or, even better, E10, which is the cheapest. That's all I use.
Hmm Ando :)
Well I use E10 94 usually and it is OK. But it is quite possible that using better Ron fuel might give better fuel economy and/or performance. All modern cars have high compression ratios and with a turbo that gives very high pressures. So the engine ECU monitors all the sensors to avoid detonation and uses the knock sensor to monitor staying on the safe side of the settings. But if the ECU decides that a bit more advance and/or boost will be OK then it will crank up for better results.
Marvelous technology we did not even dream about back in the days of hotting up the old cars and using leaded fuel !!:cool: Modern cars just work too without tinkering or playing up either.
Jaahn
 
Hmm Ando :)
Well I use E10 94 usually and it is OK. But it is quite possible that using better Ron fuel might give better fuel economy and/or performance. All modern cars have high compression ratios and with a turbo that gives very high pressures. So the engine ECU monitors all the sensors to avoid detonation and uses the knock sensor to monitor staying on the safe side of the settings. But if the ECU decides that a bit more advance and/or boost will be OK then it will crank up for better results.
Marvelous technology we did not even dream about back in the days of hotting up the old cars and using leaded fuel !!:cool: Modern cars just work too without tinkering or playing up either.
Jaahn
Hi.

I generally agree that modern engines and ECU achieve much higher specific outputs and also reduce specific fuel consumptions, than earlier designs. They provide much more control over fuel, ignition, boost, cam timing etc, than I ever thought possible when I started my diesel apprenticship. They have also proven to be quite robust in the operating environement.

The evidence supports that using the specified RON over a lower but acceptable RON will retain engine performance. Also that the ECU might adjust some parameters slightly for lower RON fuel, but this will affect performance much more than fuel economy.

Furthermore if your engine has been specifically designed for it (very few in the national vehicle fleet have), 98 RON can assist that engine to achieve it's rated performance outputs.

But I remain unconvinced that higher than specified RON improves fuel economy, in particular for engines that have not been designed to need the higher threshold of detonation onset.

Cheers.
 
When we are free of natures fuel and revert to pure clean electricity I wonder if the argument will revert to AC versus DC or how much kilometres one gets from the XYZ supplier versus "you beaut batteries" or whatever (last longer, run harder, more economical) and you have that other product hydrogen that will be maybe mixed with additives to give super boost performance! For me the ultimate will be local content, abundance, and sold almost cost free or at least free of any outside influence and minimally taxed.:)

Ken ;)
 
I'm trying to work out whether I'll get more kms per kg out of red gum or iron bark with my nearly completed steam car.🧐
 
I'm trying to work out whether I'll get more kms per kg out of red gum or iron bark with my nearly completed steam car.🧐

Based purely on my personal observations only, I favour seasoned redgum for its heat value generated throughout the burning process and maintained in the coals. Iron bark might give a hotter initial fire but will need to have significant quantities added to maintain a hot fire over time, a cost per effort analysis. But if you are into body building the continual cutting, stacking and stoking might produce an offset or cost benefit to consider.

Good luck with your research

Ken
 
Charcoal redgum. When coal was in short supply in Victoria there used to be redgum charcoal producing kilns all through the Western District. You have a pile of smouldering redgum to char the wood and take all the moisture out. The resulting charcoal was good enough for blacksmithing. I've had the top plate of a Rayburn glow red with redgum charcoal.
Wood is back in demand as a heating fuel in the country. Used to fuel the steam engines in the big shearing sheds. Before mains electricity reached the western border in 1968 there were local steam powered town generators for power. The one in Casterton used to burn big slabs of redgum.
 
I assume you mean river red gum. Very tall red gum (E tereticornis) is more widespread, but was quite acceptable to the charcoal makers too. (First noted in western Sydney, but found from Vic to north Qld).

The sheds I remember had antique internal combustion engines, possibly conversions.
 
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I was thinking of making some comments about fuel pricing, but thought "nah, maybe not".
 
A view of Australian fuel price compared to crude oil price. Fuel prices in AUD per litre, oil in USD per barrel.
Year Fuel Price Oil price
2002 87.3 / 26.13
2006 125.3 / 66
2014 146.8 / 100 spike of 145
2020 123.4 / 39
2021 147.8 / 61
2022 ? 100 to 120

Todays oil price $112.
So we can see the refiners margin is nearly double 2014. American industry commentators blame refinery closures during covid for the rise in margin. World oil consumption dropped from over 100 million barrels a day to just about 85 million because of covid.
Oil prices had begun to rise before the Ukraine war because OPEC and Russia had agreed to restrict production to raise the oil price.
So where do our fuel prices go now? Pick your expert - a hard European block of oil imports from Russia could drive the price up as high as $185, but if the present situation of political talk with imports continuing one prediction is the price could fall back to $65.

Fuel prices from Fleet Auto News.
Sorry for the clutter but the site doesn't keep my columns when I post
 
As we can see the relationship between oil price and fuel price is not precise. The discrepancy with 2014 when oil prices were similar to today but prices much lower is also noted in the U.S. where fuel prices are spiking over $6 a gallon in California (with up to $7 in Los Angeles). On the other hand a fall in oil price does not take the fuel price back to the previous level. Compare 2006 with 2021 where the oil price was lower.
Fuel pricing in Australia is opaque. We have no idea of oil company margins but it is noted that their parent companies overseas are posting record profits.
 
As we can see the relationship between oil price and fuel price is not precise. The discrepancy with 2014 when oil prices were similar to today but prices much lower is also noted in the U.S. where fuel prices are spiking over $6 a gallon in California (with up to $7 in Los Angeles). On the other hand a fall in oil price does not take the fuel price back to the previous level. Compare 2006 with 2021 where the oil price was lower.
Fuel pricing in Australia is opaque. We have no idea of oil company margins but it is noted that their parent companies overseas are posting record profits.
There is a pent up pressure due to the last two years that put a strain on all retailers, their landlords etc, as most did the right thing absorbed costs, lowered margins and with all that goodwill businesses survived and got through the pandemic lockdowns. what was noticeable is that local and state authorities did not reduce their charges. They did advise that they would accept payment plans, but there was no reduction of rates and taxes.

Most businesses were hoping for a return to higher than ever economic sales and restoration of reasonable margins however they now face rapidly rising costs as fuel costs are passed on to customers as they have no more ability to absorb costs and keep prices artificially low, so if the trade will bear it costs will increase. Inflation and cost price hikes are inevitable and that impacts wage earners as they struggle to pay increasing household bills so wage increase pressures will also fuel inflation realities.

So it is inevitable with International unrest that consumers will pay more or do without, in economics small movements can have devastating long term effects on all levels and human nature will apportion blame and want some other level of society to bear the cost so expect the politicians will be encouraged to shift the pain with appropriate punishment.

And yes there will be many big companies that will find ways to justify bigger than ever profit margins and politicians respond by hitting up levels of society that will please the majority even if those levels were the very ones that helped get through the pandemic woes and of course some parts of society will be exempt. So don't expect too much at the end of the day the exploiters will still profit and the taxers will levy every one to fill the government coffers.

So a rough time for the majority, we will see much of this play out in the United States and we will be months instead of years to expect the full brunt of the changes, most will lose with a big scramble of some to get to the top of the economic pile. Propaganda and justification will test social media.

Hopefully our farmers and builders and carpenters will get through the next three years while this settles down.

Just my thoughts based on previous difficult times in our history. Brace for the initial hit to your already depleted wallet.

Ken.
 
There is a pent up pressure due to the last two years that put a strain on all retailers, their landlords etc, as most did the right thing absorbed costs, lowered margins, and with all that goodwill, businesses survived and got through the pandemic lockdowns. what was noticeable is that local and state authorities did not reduce their charges. They did advise that they would accept payment plans, but there was no reduction of rates and taxes.

Most businesses were hoping for a return to higher than ever economic sales and restoration of reasonable margins, however they now face rapidly rising costs, as fuel price hikes are passed on to customers, as they to have no more ability to absorb costs and keep prices artificially low, so if the trade/consumers will bear it, costs will increase. Inflation and cost price hikes are inevitable, and that impacts wage earners as they struggle to pay increasing household bills, so wage increase pressures will also fuel inflation realities.

So it is inevitable with International unrest, that consumers will pay more or do without. In economics small movements can have devastating long term effects on all levels of society. Human nature will apportion blame and want some other level of society to bear the cost! So expect politicians will be encouraged to shift the pain with appropriate punishment.

And yes there will be many big companies that will find ways to justify bigger than ever profit margins and politicians respond by hitting up levels of society that will please the majority, even if those levels were the very ones that helped get through the pandemic woes and of course some parts of society will be exempt by way of corrupt behaviour. So don't expect too much at the end of the day, the exploiters will still profit and the taxers will levy every one to fill the government coffers.

So a rough time for the majority. We will see much of this play out in the United States and we will be just months instead of years to expect the full brunt of the changes, most will lose, with a big scramble of some to get to the top of the economic pile. Propaganda and justifications will test (anti) social media.

Hopefully our farmers and builders and carpenters will get through the next three years while this settles down. They are the canaries in the coal mine of economics survival.

Just my thoughts based on previous difficult times in our history. Brace for the initial hit to your already depleted wallet. That includes my thin wallet.:eek:too.

Ken.
 
Yes Ken, we are certainly in "interesting" times. Probably the most complex world economic situation since the war. Rising inputs, (sometimes 300%), shortages, soaring energy costs, rising interest rates and we all hope the final sum at the end makes sense. Fortunately in the world environment of food shortage farmers have no problem finding buyers for product if we are allowed to continue to produce. This situation has been building for a couple of years now. Some countries prefer to live like the grasshopper in Aesops fable and dance, others like China are like the ant and have both filled their granaries and secured long term supplies of cheap energy. Hopefully we will be able to avoid the self inflicted energy and food crises facing some of Europe and maintain our living standards. No shortage of diesel for sowing even if the price is a record.
 
A view of Australian fuel price compared to crude oil price. Fuel prices in AUD per litre, oil in USD per barrel.

So we can see the refiners margin is nearly double 2014.
The difference between the price of a barrel of oil, and the retail price of petrol, is not 'the refiner margin'.
Secondly, you have not factored in the effect of fx exchange rates. You are quoting oil in USD, but petrol in AUD.
 
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