Price of petrol misunderstood

As we become inured to the sense of frustration as we fill up at the pumps, it is interesting to reflect on how the price of this essential component of our lifestyles fits into a broader perspective.

The ‘‘pain at the pumps’’ issue has established that Government-imposed excise duties on petrol cost us $1.18 per litre, so that when we pay $2.40 at the pumps the oil companies are providing our fuel at $1.22 per litre.

Compare this with the cost of any any other fluid that we purchase. We pay three times as much for milk. Sugary drinks cost us twice as much, and bottled water is similar, unless you buy it from an expensive outlet, in which case you can pay more than for milk. Other fluids, ranging from fruit juice to cleaning products, cost far more.

Then think about petrol. The raw material has to be extracted from deep inside the earth’s crust and purchased on the international market before it is shipped vast distances to Whangarei to be refined. From there the volatile fluid is distributed up and down the length of the country to depots that have to make substantial investments in storage and pumping facilities to be safely operated by untrained members of the public. This is not stuff that can be picked off supermarket shelves.

Quite simply, apart from tap water, and overlooking excise duties, petrol is the cheapest fluid we are likely to buy. I find that quite amazing. Kit Cuttle, Johnsonville