The distribution of petroleum in Victoria

The location and development of cities and industries are closely related to the availability of raw materials and other inputs of production, and to the presence of people. Where there is movement of people, and production and transport of goods and materials, there are petroleum products consumed. The demand for petroleum transport is a derived demand, since movement of petroleum products results from decisions made in other sections of the economy concerning production, consumption and sales of goods and services. These decisions may have little to do with petroleum transport, but lead to the demand for petroleum and hence for petroleum transport. Petroleum products and petroleum transport are related because anything that affects the demand for petroleum products also affects the demand for petroleum transport. However, the demand for petroleum transport may be affected without affecting the demand for the petroleum products themselves, since technological, regulatory and other charges may affect the way in which the distribution task is carried out. Because of the nature or demand of petroleum transport, carriers must be sensitive to conditions that prevail in the markets for petroleum products to accurately forecast their demand picture and to plan their marketing strategies.