Fuel-Tab for the week ending 6 Mar 2009
Hale & Twomey market update
- Oil demand continues to contract, even in developing countries like China & India while OPEC remains focussed on achieving reduced quotas.
- Refiners are being squeezed with higher crude prices and poor product prices from high inventories and weak demand.
Landed cost
73.39 NZ cpl
| Influence |
Change |
Current |
| Crude component |
1.25 |
57.08 |
| Refining component |
3.59 |
10.91 |
| Shipping component |
0.46 |
5.40 |
| Forex impact |
1.79 |
- |
| Total landed cost |
|
73.39 |
- All figures in NZ cents per litre (NZ cpl).
- Landed cost is the cost to import petrol into NZ, and is influenced by the international market price for:
- Crude, based on a typical mix of crude oil used in refining;
- Refining crude oil into NZ specification petrol;
- Shipping the petrol to NZ.
- Forex impact: Petrol is purchased in US dollars and sold in NZ dollars. Movement in the exchange rate affects the landed cost and is shown separately.
Current retail price
163.90 NZ cpl
| Influence |
Change |
Current |
| Landed cost |
1.01 |
73.39 |
| Oil company costs and margin |
0.59 |
19.73 |
| Duties and excise taxes |
- |
52.57 |
| GST |
0.20 |
18.21 |
| Total retail cost |
|
163.90 |
- All figures in NZ cents per litre (NZ cpl).
- Oil company costs and margin on retail fuel includes all wholesale and retail costs to deliver and market the product, and a return on investment.
- Duties and excise taxes for petrol are:
| |
|---|
| - Excise tax | 42.524 cpl |
|---|
| - ACC levy | 7.330 cpl |
|---|
| - Petroleum Fuels Monitoring Levy | 0.025 cpl |
|---|
| - Local Authorities Petroleum Tax | 0.660 cpl |
|---|
Regular petrol market influences
- Concern about planned regional increases in petrol production (Reliance refinery) is causing regional refining margins to slump.
- Despite the weaker Kiwi offsetting the lower prices, oil co costs & margins remain strong, indicating room for a price drop.
Landed cost
79.31 NZ cpl
| Influence |
Change |
Current |
| Crude component |
1.25 |
57.08 |
| Refining component |
4.57 |
16.73 |
| Shipping component |
0.47 |
5.50 |
| Forex impact |
1.96 |
- |
| Total landed cost |
|
79.31 |
- All figures in NZ cents per litre (NZ cpl).
- Landed cost is the cost to import petrol into NZ, and is influenced by the international market price for:
- Crude, based on a typical mix of crude oil used in refining;
- Refining crude oil into NZ specification petrol;
- Shipping the petrol to NZ.
- Forex impact: Petrol is purchased in US dollars and sold in NZ dollars. Movement in the exchange rate affects the landed cost and is shown separately.
Current retail price
168.90 NZ cpl
| Influence |
Change |
Current |
| Landed cost |
1.83 |
79.31 |
| Oil company costs and margin |
0.23 |
18.25 |
| Duties and excise taxes |
- |
52.57 |
| GST |
0.20 |
18.77 |
| Total retail cost |
|
168.90 |
- All figures in NZ cents per litre (NZ cpl).
- Oil company costs and margin on retail fuel includes all wholesale and retail costs to deliver and market the product, and a return on investment.
- Duties and excise taxes for petrol are:
| |
|---|
| - Excise tax | 42.524 cpl |
|---|
| - ACC levy | 7.330 cpl |
|---|
| - Petroleum Fuels Monitoring Levy | 0.025 cpl |
|---|
| - Local Authorities Petroleum Tax | 0.660 cpl |
|---|
Premium petrol market influences
- Concern about planned regional increases in petrol production (Reliance refinery) is causing regional refining margins to slump.
- Despite the weaker Kiwi offsetting the lower prices, oil co costs & margins remain strong, indicating room for a price drop.
Landed cost
85.14 NZ cpl
| Influence |
Change |
Current |
| Ethanol price |
4.84 |
65.50 |
| Shipping component |
0.01 |
19.64 |
| Forex impact |
2.12 |
- |
| Total landed cost |
|
85.14 |
- All figures in NZ cents per litre (NZ cpl).
- Landed cost is the cost to import ethanol into NZ, and is influenced by the international market price for:
- Ethanol, based on the export Brazil price;
- Shipping the ethanol to NZ.
- Forex impact: Ethanol is purchased in US dollars and sold in NZ dollars. Movement in the exchange rate affects the landed cost and is shown separately.
Blended cost
96.45 NZ cpl
| Influence |
Change |
Current |
| Landed cost |
2.73 |
85.14 |
| Storage and blending cost |
- |
10.60 |
| Duties and excise taxes |
- |
0.71 |
| Total retail cost |
|
96.45 |
- All figures in NZ cents per litre (NZ cpl).
- Storage and blending costs are H&T’s assessment of the costs for storing and then blending ethanol into petrol.
- Duties and excise taxes for ethanol are:
| |
|---|
| - Excise tax | exempt |
|---|
| - ACC levy | 7.330 cpl |
|---|
| - Petroleum Fuels Monitoring Levy | 0.025 cpl |
|---|
| - Local Authorities Petroleum Tax | 0.660 cpl |
|---|
Ethanol market influences
- Ethanol prices are declining as producers sell inventory to generate cash now, rather than holding the inventory to sell during the off-season.
- Regulators in the US are investigating the suitability of 15% ethanol blends for non flexi fuel vehicles.
Retail price
| Retail price impact |
Change |
Current |
| Regular petrol |
1.80 |
163.90 |
| E5 (regular with 5% ethanol) |
1.90 |
162.24 |
| E10 (regular with 10% ethanol) |
2.00 |
160.58 |
- All figures in NZ cents per litre (NZ cpl).
- Retail price impact indicates how the retail price of regular petrol may change with ethanol addition.
- Ethanol has a lower energy content than petrol per litre (about 67%), but a higher octane.
Landed cost of ethanol for the six months to 06 Mar 2009 in NZ and US dollars
Differential cost of E10 against regular petrol for the six months to 06 Mar 2009
Landed cost
72.78 NZ cpl
| Influence |
Change |
Current |
| Crude component |
1.25 |
57.09 |
| Refining component |
2.51 |
9.69 |
| Shipping component |
0.51 |
6.00 |
| Forex impact |
1.76 |
- |
| Total landed cost |
|
72.78 |
- All figures in NZ cents per litre (NZ cpl).
- Landed cost is the cost to import diesel into NZ, and is influenced by the international market price for:
- Crude, based on a typical mix of crude oil used in refining;
- Refining crude oil into NZ specification diesel;
- Shipping the diesel to NZ.
- Forex impact: Diesel is purchased in US dollars and sold in NZ dollars. Movement in the exchange rate affects the landed cost and is shown separately.
Current retail price
100.90 NZ cpl
| Influence |
Change |
Current |
| Landed cost |
0.01 |
72.78 |
| Oil company costs and margin |
1.59 |
16.53 |
| Duties and excise taxes |
- |
0.38 |
| GST |
0.20 |
11.21 |
| Total retail cost |
|
100.90 |
- All figures in NZ cents per litre (NZ cpl).
- Oil company costs and margin on retail fuel includes all wholesale and retail costs to deliver and market the product, and a return on investment.
- Duties and excise taxes for diesel are:
| |
|---|
| - Excise tax | covered by RUC |
|---|
| - ACC levy | covered by RUC |
|---|
| - Petroleum Fuels Monitoring Levy | 0.025 cpl |
| - Local Authorities Petroleum Tax | 0.660 cpl |
|---|
Diesel market influences
- Weak demand and high inventory levels continue to weigh on regional diesel prices, with refining margins compressing further.
- The weaker Kiwi is offsetting these lower prices with oil co costs & margins remaining at the higher end of the typical range.
Landed cost
147.71 NZ cpl
| Influence |
Change |
Current |
| Biodiesel component |
0.12 |
132.97 |
| Shipping component |
0.01 |
14.74 |
| Forex impact |
3.48 |
- |
| Total landed cost |
|
147.71 |
- All figures in NZ cents per litre (NZ cpl).
- Landed cost is the cost to import biodiesel into NZ, and is influenced by the international market price for:
- Biodiesel, based on the Malaysian palm olein price plus manufacturing cost;
- Shipping the biodiesel to NZ.
- Forex impact: Biodiesel is purchased in US dollars and sold in NZ dollars. Movement in the exchange rate affects the landed cost and is shown separately.
Blended cost
159.19 NZ cpl
| Influence |
Change |
Current |
| Landed cost |
3.59 |
147.71 |
| Storage and blending cost |
- |
11.10 |
| Duties and excise taxes |
- |
0.38 |
| Total retail cost |
|
159.19 |
- All figures in NZ cents per litre (NZ cpl).
- Storage and blending costs are H&T’s assessment of the costs for storing and then blending biodiesel into diesel.
- Duties and excise taxes for biodiesel are:
| |
|---|
| - Excise tax | covered by RUC |
|---|
| - ACC levy | covered by RUC |
|---|
| - Petroleum Fuels Monitoring Levy | 0.025 cpl |
| - Local Authorities Petroleum Tax | 0.660 cpl |
|---|
Biodiesel market influences
- Even with feedstock prices stabilising many worldwide producers are struggling to make profits.
- Locally the weaker Kiwi continues to undermine biodiesel's competitiveness in this fledgling market.
Retail price
| Retail price impact |
Change |
Current |
| Diesel retail price |
1.80 |
100.90 |
| B5 (diesel with 5% biodiesel) |
1.60 |
105.74 |
- All figures in NZ cents per litre (NZ cpl).
- Retail price impact indicates how the retail price of diesel may change with biodiesel addition.
Landed cost of ethanol for the six months to 06 Mar 2009 in NZ and US dollars
Differential cost of B5 against diesel for the six months to 06 Mar 2009
Landed cost
66.92 NZ cpl
| Influence |
Change |
Current |
| Crude component |
1.25 |
57.09 |
| Refining component |
3.33 |
4.04 |
| Shipping component |
0.49 |
5.79 |
| Forex impact |
1.63 |
- |
| Total landed cost |
|
66.92 |
- All figures in NZ cents per litre (NZ cpl).
- Landed cost is the cost to import jet fuel into NZ, and is influenced by the international market price for:
- Crude, based on a typical mix of crude oil used in refining;
- Refining crude oil into international specification jet fuel;
- Shipping the jet fuel to NZ.
- Forex impact: Jet fuel is purchased in US dollars and sold in NZ dollars. Movement in the exchange rate affects the landed cost and is shown separately.
Landed cost (US cents per gallon)
126.15 US cpg
Jet A1 market influences
- Refining margins have nearly halved from last week's already low levels as the weak demand continues, and inventory levels remain high.
- The weaker Kiwi is partially offsetting these lower prices.
Landed cost of Jet A1 for the six months to 06 Mar 2009 in NZ and US dollars
HFO (180cSt) landed cost
540.14 NZD/tonne
51.26 NZ cpl
| Influence |
Change |
Current |
| Crude component |
13.16 |
601.54 |
| Refining component |
34.89 |
-131.67 |
| Shipping component |
6.11 |
70.27 |
| Forex impact |
13.36 |
- |
| Total landed cost |
|
540.14 |
- All figures in NZ dollars per tonne (NZD/tonne).
- Landed cost is the cost to import heavy fuel oil (180cSt) into NZ, and is influenced by the international market price for:
- Crude, based on a typical mix of crude oil used in refining;
- Refining: fuel oil is a residual product of the refining process and trades at a discount to crude oil;
- Shipping the fuel oil to NZ.
- Forex impact: Fuel oil is purchased in US dollars and sold in NZ dollars. Movement in the exchange rate affects the landed cost and is shown separately.
LFO (40cSt) landed cost
641.14 NZD/tonne
58.79 NZ cpl
- All figures in NZ dollars per tonne (NZD/tonne).
- Light fuel oil is based on a blend (by mass) of:
- 70% fuel oil, with a viscosity of 180cSt;
- 30% diesel.
Fuel oil market influences
- Fuel oil demand is a mixed bag with demand for electricity generation weakening, and demand for ships bunkers remaining firm. Overall fuel oil's discount to crude is increasing.
- Even with the weaker Kiwi, fuel oil is cheaper this week.
Landed cost of Heavy Fuel Oil (180cSt) and Light Fuel Oil (40cSt) for the six months to 06 Mar 2009
New Zealand Fuel Price Monitor
