How do I buy petrol in bulk?

Discussion in 'Other Asset Classes' started by spludgey, 29th Mar, 2022.

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  1. spludgey

    spludgey Well-Known Member

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    So you might have read that out of desperation the federal government will cut fuel excise tax in half from tomorrow.

    I also read that it will take a few weeks to filter through as the fuel in the tanks has been paid already.
    So this seems to imply that you can "pre-purchase" petrol including excise.
    So is there a way of me buying 100,000L of petrol on September 27th and selling it at the higher price afterwards? Obviously I don't want to physically buy them.

    I'm guessing the answer is no, given how this seems to be a no-brainer (if doable), I'd ask.
     
  2. Gockie

    Gockie Life is good ☺️ Premium Member

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    I don't know but my tank was empty so I filled up tonight. I have a diesel car. $135....
    Plus add on some groceries so I spent $200 after pole class tonight. 20220329_194938.jpg 20220329_191530.jpg
     
  3. Stoffo

    Stoffo Well-Known Member

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    Due to fuel being a hazardous product you will likely require a license (and safety measures) to store any great amount......
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    My Mazda 2 got to $98.00 the other night on a single fill o_O

    The Y-man
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    Yes absolutely - most airlines do it - trade oil futures.

    The Y-man

    Edit - it's not "petrol" as such, but crude
     
  6. samiam

    samiam Well-Known Member

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    Costco got “cheaper” petrol but even then half tank is >$50 these days..

     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Petrol stations will increase the cost of fuel at the drop of a hat for various reasons regardless of what price they filled their underground tanks at.

    You could get a IBC and fill it with 1000ltr of fuel and buy a fuel nozzle attachment and have 10 weeks of fuel per IBC (100ltr per week which is what I use). Buy 5 of them and you'd have a year.

    Or just blow the credit card and get one of these 5000L Round Stationary Storage Diesel Tank | Tank Management
     
  8. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    I doubt any of these would meet regulations for storage of petrol as it is classed as inflamatory. I doubt a supplier would fill them. Shuttles would have high evaporation after a year you would only have loose over half. You would probably need 5 acres of land to store it legally or have underground tanks.
     
  9. spludgey

    spludgey Well-Known Member

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    I don't want to store it, in fact, I never want to possess it. I'm thinking trading like you would trade gold.
     
  10. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    You could do this for diesel but safety regulations and evaporation would make it impractical for petrol. I am in a co-operative of 20 people that got a 70,000l L tank from Riordan Fuel, like a shipping container with a pump I have a fuel card that gives me a discount that I get at all Riordan fuel tanks the most I have paid for fuel is $ 2.03. Before the excise is increased I might store about 2000L I have 7000L of storage, but I dont want to store too much because of risk of theft , deterioration and oportunity cost. Diesel can keep for a decade petrol 2 years. There is also oportunity cost. You can use swaps, futures and options but they are better for hedging against upside and come at a cost.
     
    Last edited: 30th Mar, 2022
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  11. Gockie

    Gockie Life is good ☺️ Premium Member

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    You have just reminded me, I need to buy some international flights….. is it better to buy now or wait a little while? I think most airlines haven’t started charging increased fuel levies but there is talk of that restarting.
     
  12. Empire

    Empire Well-Known Member

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    Usually the later you leave your flight booking the more expensive it gets.
     
  13. datto

    datto Well-Known Member

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    It does sound like a good idea to buy petrol in bulk to save or make money. It will need research. I might have a sniff around.
     
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  14. The Y-man

    The Y-man Moderator Staff Member

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  15. wylie

    wylie Moderator Staff Member

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    We've booked OS flights recently through Flight Centre and paid $99 each for a package which means if prices drop on the flights, we will be reimbursed. Sales person said she's seen some decent refunds when prices have dropped in the past for flights already paid for.

    We knew if we waited it is possible (likely?) that prices would increase.

    Like any insurance, it is a risk (and we chose to pay it).

    Captain's Package
     
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  16. Momentum

    Momentum Well-Known Member

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    I recently found out about the OzB helicopter trick using fuel lock on the 7-11 app. You can lock in the cheapest petrol price anywhere in the country and your local 7/11 will honour the same price

    7-Eleven Fuel App Watch - Nationwide
     
  17. ShireBoy

    ShireBoy Well-Known Member

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  18. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Futures market. Brent Crude is one market. Australia is more alinged to the spot / futures in Singapore however so better to consider that market. Retail fuel isnt a traded future commodity. ie NOT "petrol". But you can get futures for low sulphur oil. However the futures market will already price in (unknown) expectations to the next settlement period (each 90 days). Take care if you hold BUY futures this assumes you will SELL physical in the futures qty volume x contract numbers. I think a unit is 100 tonnes of oil. A futures market will trade off "long positions"for those who cant deliver in the days approaching the contract close out. Its doubtful a futures market dealer would allow you to trade spot / futures in oil. And you would remain exposed to SING/AUD exchange rates. Doubt you could access a currency hedge.

    The nearest spot delivery arbitrage mechanism is the 7-11 app but it is time and volume limited to a basic tankful.