The formula is in summary: -the Singaporean refinery wholesale price -shipping+ insurance+ evaporation costs -Aus storage + wholesale margin + distribution costs -Gov excise -Retail margin + GST
Our pricing Achilles' Heel is that the Singaporean wholesale price can be manipulated because that market is dominated by 2 Multinational Oil Refiners and our ACCC is helpless to investigate because it is outside its Jurisdiction.
As an electtion package deal in 1996, the Howard Government set the wholesale prices of automotive fuels outside Aus at the request of Big Oil; Singapore & Saudi Arabia.
This started the the domestic refinery rot . Up to then we were a net exporter of oil and now we are about 90$ dependant on refined product.
Like other key segments of our economy, Multinationals control and obtain windfall profits out oil market and at the same time minimise their Aus tax via debt loading etc etc.
RIO & BHP have been nailed by the ATO with combined fines of $1.5 Billion for "Transferring Price" via their Singaporean Marketing Hub facilitated by our Aus-Singapore Free Trade Agreement. The question now is that FTA fit for purpose?
