$1.82.9 cents per litre – 10/3/10.
I was watching a politician explain our fuel prices are set by the cost from the Singapore refinery.
In the same TV interview the politician explained that NZ is nearly 40% self sufficient in oil.
NZ Oil is sold on the international market to get the best price, because it is of high quality.
Quoting NZ oil production is one of those headline grabbers that Politicians love to use, but it fails to explain why we are being forced to the wall over fuel prices.
Now am I stupid for not understanding why our oil resource is not used locally to drive down the cost of fuel in this country?
The excuse is a lack of refining facilities.
The real answer is fuel supply is in the hands of the multi national cartels, who are determined to extract the maximum profit by making oil producing countries send their unrefined crude off shore, only to arrive back as a finished product for a handsome profit.
Given that NZ has been producing commercial quantities of crude oil for three decades, I fail to see what excuse is good enough to explain why we don’t have refining capacity to keep our own oil for local consumption.
An interesting historical article I read stated that light crude oil[diesel oil] used to burn in early diesel engines with no problems.
This was happening where landowners had oil available on their own properties, the crude would separate by specific gravity, it was a simple task to pour off the lighter fractions to separate them.
Mind you those old engines probably would run on just about anything.
But that raised a nagging doubt over how much fuel refining is necessary, and beyond a certain point it is a process designed to add profit to big oil’s bottom line.