Wednesday, June 04, 2008

Sydney Petrol Price and the GST/Excise

I don't know who else has thought about this, but tonight waiting for a server reboot I did. So in brief here are some facts.

Barrel of oil = 158 Litres
Barrel of oil cost AUD = $130
Output of this barrel:
Petrol 68 litres
Diesel 33 litres
Other 36 litres

Cost of purchase:
Sydney petrol $1.60 $108.70
Sydney diesel $1.80 $59.72
Sydney cost of other? 0.5 $18.00
TOTAL $186.43

Cost of Escise (Tax) and GST:

TAX National Fuel Excise 38.143% $71.11
TAX state GST 10% $18.64
Real cost $96.68 (only 52% of cost)

By my crude calculation that makes the true cost of petrol today
Sydney petrol minus Excise & GST $0.83
Sydney petrol with GST no Excise $0.91

And if I extrapolate that out for our family:

Ute 100L 48 Weekly fills
Focus 50L 48 Weekly fills

Then the fuel without the excise will save us:
Saving annual or Weekly savings
$3,312 $64
$1,656 $32

$100 a week our family is paying in Excise... Is that really needed? $5000 per year I am paying the government for the energy I need to get to work because there is no public transport, the nearest bus that takes me to another bus is 1.5km, the nearest direct bus is 17km the nearest train is 13km.

Don't forget this is on top of income tax ...

Let me think about that a different way, I have a $400,000 home loan (30 year). If I get an extra $100 per week what can that do to my home loan? Well according to echoice.com.au I will payoff the home loan 7 years earlier, and will save $156,000.00 in interest.

But I guess we are stuck so if we leave it as is for 30 years I can pay the government $114,000 in excise AND the the bank the extra in mortgage costs $156,000. Meaning due to excise I have to fork out an extra $270,000 or $226 per week. Geezzzz thank you Australian Federal Government.

And they are trying to stop inflation...? I don't think they are thinking hard enough.


sources for details:
http://www.echoice.com.au/mortgage/home_loans?pn=/homeloancalculators/extrarepayments.html
http://www.openroad.com.au/driverknowhow_fuellingthenation.asp
http://www.livecharts.co.uk/MarketCharts/crude.php
http://www.autoblog.com/2008/06/04/oil-independence-possible-according-to-doe-scientist/

Dave
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