Why is it that the price of LPG gas in Australia goes up and down?

Posted by admin as Petrol Prices Australia

One week it will be 66.9, the next it is 72.9. I can’t understand this. It is not like it is payed for by the barrel like oil.. one petrol station has it for 78.9 and 2 mins up the road it is 66.9 . Does anyone monitor this??

It’s a damn good question and the answer angers me no end.
Although Australia supplies it’s own fuel, including LPG, it is priced by IPEC in Singapore.
It revolves around world parity, but really means it make sure the Govt gets the biggest possible price, yet can sell the stuff to China for 1.5 cents a litre, and that’s landed in china!