Prior to the recent increases in fuel costs, the quoted estimate...

Prior to the recent increases in fuel costs, the quoted estimate of transporting to port, excluding port costs was about 1/3rd of total costs. From the website below fuel costs are also about 30% of transport costs. Fuel is therefore around 10% of the normal cost base for E25.

Retail fuel pricing does not match the percentage changes in oil because a significant proportion of fuel costs relate to processing conversion, distribution and government taxes. These cost inputs create a dampening effect so the retail price of petrol/oil doesn't swing as much as the underlying price of oil. It still swings, but not by as much.

Google provided the following quote below. During this period oil was briefly under 70 and around or above 90 for most of Febrary. The price of diesel movement was less than half the price movement from oil due to other non-oil items within the price. A doubling in the price of a barrel of oil may therefore add around 50% to the retail price of diesel fuel. A 50% increase in the price of fuel would add 5% to E25's cost structure. A 5% increase in costs decreases does decrease profitability, but E25 has also seen a near 20% increase in the price of Mn which increases profitability. This Mn price increase will appear as an even larger change in cashflow because it is net of shipping and grade discounts that don't increase when the price does. Given current Mn prices its still a great time to be trucking Mn ore to port and shipping it of a strong prices.


www.saferates.com.au/Calculators/TruckOperatingCostCalculator/tabid/535/Default.aspx
Screenshot from the website link above.


Good luck on your additional purchases Rocket - IMO its a good time to be buying.