1
00:00:00,040 --> 00:00:02,240
Speaker 1: Hey, last night I got some petrol at a dollar

2
00:00:02,320 --> 00:00:06,600
Speaker 1: fifty four per lida, which was good Front letter ninety one.

3
00:00:07,480 --> 00:00:10,719
Speaker 1: Considering in most service stations it seems to be sitting

4
00:00:10,720 --> 00:00:13,000
Speaker 1: at about a dollar ninety nine point nine, so two

5
00:00:13,080 --> 00:00:17,760
Speaker 1: dollars a leader. There's I've noticed this in recent weeks

6
00:00:17,800 --> 00:00:21,560
Speaker 1: around Adelaide that around eighty percent of servos are putting

7
00:00:21,560 --> 00:00:25,560
Speaker 1: their prices up, but some twenty percent give or take

8
00:00:26,200 --> 00:00:29,480
Speaker 1: keeping them at the lower price for longer. So what's

9
00:00:29,560 --> 00:00:32,360
Speaker 1: going on with that? Mark Borlace is from the RAA

10
00:00:32,440 --> 00:00:33,959
Speaker 1: and he does this for a living, having a look

11
00:00:33,960 --> 00:00:35,199
Speaker 1: at petrol prices going I.

12
00:00:35,280 --> 00:00:39,440
Speaker 2: Mark, okay, mate, Yes, we do spend a bit of

13
00:00:39,479 --> 00:00:41,599
Speaker 2: time looking at what the data is telling us, and

14
00:00:42,360 --> 00:00:47,560
Speaker 2: what you've seen is fairly corrected. We've got back into

15
00:00:47,560 --> 00:00:51,960
Speaker 2: a more regular two weekly sort of cycle, and so

16
00:00:52,120 --> 00:00:55,240
Speaker 2: what we've been seeing over the last five cycles is

17
00:00:55,400 --> 00:00:58,320
Speaker 2: the high point is back at two dollars, but the

18
00:00:58,360 --> 00:01:01,680
Speaker 2: low point each side local has been getting lower. So

19
00:01:01,760 --> 00:01:05,000
Speaker 2: we have been getting cheaper prices and the reason for

20
00:01:05,080 --> 00:01:07,920
Speaker 2: that is that what's going on outside in the world.

21
00:01:08,800 --> 00:01:14,720
Speaker 2: We've seen strength strengthening of the Australian dollar, which is

22
00:01:15,080 --> 00:01:17,560
Speaker 2: good because all of our oil contracts are written in

23
00:01:18,000 --> 00:01:22,240
Speaker 2: US dollars, so that's helped. But we've also seen a

24
00:01:22,319 --> 00:01:26,440
Speaker 2: lowering of the fine products and crude around the world,

25
00:01:26,520 --> 00:01:30,639
Speaker 2: and that's because they're worried about the recession, especially in China,

26
00:01:30,720 --> 00:01:34,240
Speaker 2: so they try to keep energy costs down so that

27
00:01:34,280 --> 00:01:37,959
Speaker 2: businesses we'll still keep buying it. And we've seen a

28
00:01:37,959 --> 00:01:45,280
Speaker 2: bit more stability in the world now. Obviously, if the

29
00:01:46,360 --> 00:01:50,240
Speaker 2: issues that are happening with Israel and Lebanon do spill

30
00:01:50,280 --> 00:01:54,960
Speaker 2: out into those oil producing countries, then that we may

31
00:01:55,000 --> 00:01:57,920
Speaker 2: see a different sort of price in but at this

32
00:01:57,960 --> 00:02:02,360
Speaker 2: stage looks quite contained. The good news is for consumers

33
00:02:02,360 --> 00:02:04,720
Speaker 2: that we've we've had a good trend over the last

34
00:02:05,400 --> 00:02:09,400
Speaker 2: months and a half down and and yeah, so that's

35
00:02:09,440 --> 00:02:12,160
Speaker 2: that's been good for all of us. Now, this this

36
00:02:12,480 --> 00:02:17,440
Speaker 2: despite coming up and the lead up to a a

37
00:02:17,480 --> 00:02:21,360
Speaker 2: long weekend, means if you are going away, it's probably

38
00:02:21,400 --> 00:02:22,960
Speaker 2: going to be cheaper. If you're going to you know,

39
00:02:23,040 --> 00:02:26,359
Speaker 2: Wallaru or down to Mount Gamu or into the river land,

40
00:02:27,080 --> 00:02:29,760
Speaker 2: it's probably going to be cheaper out there on the weekend.

41
00:02:29,800 --> 00:02:32,519
Speaker 2: Then it's going to be is going to be in Audelaide.

42
00:02:32,639 --> 00:02:35,519
Speaker 1: Why is that? Why? The because there was a time

43
00:02:35,520 --> 00:02:36,720
Speaker 1: when it was the other way around.

44
00:02:37,760 --> 00:02:40,400
Speaker 2: Yeah, so the country doesn't have a price cycle, and

45
00:02:40,440 --> 00:02:42,560
Speaker 2: that's mainly because they haven't got the same sort of

46
00:02:43,840 --> 00:02:48,360
Speaker 2: competition that Adelaide has. Adelaide is one of only five

47
00:02:48,400 --> 00:02:52,359
Speaker 2: cities in Australia that has a price cycle. Obar canbra

48
00:02:52,480 --> 00:02:57,239
Speaker 2: and Darwin don't have price cycles. Now what that means

49
00:02:57,320 --> 00:02:59,919
Speaker 2: is when when all the prices are the same, people

50
00:03:00,080 --> 00:03:04,960
Speaker 2: stopped really shopping around and then on average those cities

51
00:03:05,000 --> 00:03:08,720
Speaker 2: pay more for their fuel because the competition is not

52
00:03:08,880 --> 00:03:13,799
Speaker 2: so fierce. And we just saw from the Triple A

53
00:03:13,919 --> 00:03:17,360
Speaker 2: Triple c's quarterly report last week that came out that

54
00:03:18,960 --> 00:03:21,639
Speaker 2: Adelaide had some of the cheapest fuel in Australia and

55
00:03:21,960 --> 00:03:26,680
Speaker 2: we were the only city where the prices went down slightly,

56
00:03:26,720 --> 00:03:28,600
Speaker 2: only point seven of aer cent, but we were the

57
00:03:28,639 --> 00:03:30,720
Speaker 2: only city where it went down in the last quarter.

58
00:03:32,280 --> 00:03:34,359
Speaker 2: So it is you know, it's not very often we

59
00:03:34,440 --> 00:03:37,360
Speaker 2: get to stay good, some good news for consumers, but

60
00:03:38,680 --> 00:03:41,280
Speaker 2: so far it has been good, especially and as we

61
00:03:41,360 --> 00:03:46,200
Speaker 2: know this sort of time of household budgets are starting

62
00:03:46,240 --> 00:03:48,120
Speaker 2: to strain a fair bit, so this is a bit

63
00:03:48,120 --> 00:03:48,960
Speaker 2: of welcome new.

64
00:03:48,960 --> 00:03:52,800
Speaker 1: Yeah, absolutely, all right, why are not all the surveys

65
00:03:52,840 --> 00:03:55,600
Speaker 1: on the same page, and I suppose there's always been exceptions,

66
00:03:55,640 --> 00:03:58,560
Speaker 1: but it seems to be more of a thing where

67
00:04:00,160 --> 00:04:02,720
Speaker 1: number of servos stay cheaper for longer.

68
00:04:03,920 --> 00:04:08,200
Speaker 2: Yeah, so you've got a couple of business models. So

69
00:04:08,240 --> 00:04:11,520
Speaker 2: there are the on the run type models where they

70
00:04:11,560 --> 00:04:16,440
Speaker 2: are a mixed business. They've got grocery, spast food, parer watchers, petrol,

71
00:04:16,520 --> 00:04:19,760
Speaker 2: et cetera, and they use they use petrol prices in

72
00:04:19,800 --> 00:04:22,039
Speaker 2: that mix to get people in to buy their other stuff.

73
00:04:23,200 --> 00:04:26,080
Speaker 2: There are some service stations who just rely on lots

74
00:04:26,080 --> 00:04:28,520
Speaker 2: of volume to be able to get the cheaper prices

75
00:04:28,600 --> 00:04:32,520
Speaker 2: the big guys get, and they're the ones who probably

76
00:04:32,560 --> 00:04:35,400
Speaker 2: don't have the whole suite of other businesses there, so

77
00:04:35,440 --> 00:04:38,880
Speaker 2: they rely more on petrol and so that they're pretty

78
00:04:38,920 --> 00:04:42,400
Speaker 2: keen in their pricing. Plus, we've seen start to see

79
00:04:42,440 --> 00:04:46,800
Speaker 2: some ownership changes. We've seen VP starting to buy Exconvenience

80
00:04:46,800 --> 00:04:50,680
Speaker 2: and we've got Viva bought having brought on the Run,

81
00:04:50,800 --> 00:04:54,000
Speaker 2: so we're we're maybe seeing a little bit of competition

82
00:04:54,080 --> 00:04:57,479
Speaker 2: in the market with the new players there, with the

83
00:04:57,560 --> 00:05:02,640
Speaker 2: new owners there. So so it's you know, they they

84
00:05:02,920 --> 00:05:04,760
Speaker 2: must be making money. You've seen the see a fair

85
00:05:04,880 --> 00:05:08,640
Speaker 2: few sites going up around the place, and they're not

86
00:05:08,640 --> 00:05:12,159
Speaker 2: not cheap sites to build it. They're large footprints and

87
00:05:12,160 --> 00:05:15,560
Speaker 2: they've put a lot of special equipment in there. And yeah,

88
00:05:15,640 --> 00:05:19,280
Speaker 2: so it is good news if you've been able to

89
00:05:19,279 --> 00:05:21,000
Speaker 2: fill up today and there's still as you said, there's

90
00:05:21,000 --> 00:05:24,280
Speaker 2: still a lot around dollars fifty five. So if you're

91
00:05:24,320 --> 00:05:27,080
Speaker 2: heading out at all today, that's a really good price

92
00:05:27,120 --> 00:05:27,760
Speaker 2: to fill up that.

93
00:05:27,839 --> 00:05:30,000
Speaker 1: Absolutely, if you see it anywhere, make sure you chuck

94
00:05:30,080 --> 00:05:31,680
Speaker 1: them in, even if you need a quarter of a tank.

95
00:05:31,720 --> 00:05:34,159
Speaker 1: It's better than spending two bucks on it, that's for sure.

96
00:05:35,400 --> 00:05:39,680
Speaker 1: The price of diesel mark that is always up and down,

97
00:05:39,680 --> 00:05:41,560
Speaker 1: of course depending I don't know if it depends on

98
00:05:41,600 --> 00:05:45,400
Speaker 1: where petrol is as opposed to diesel as in unleaded fuel,

99
00:05:46,200 --> 00:05:50,040
Speaker 1: but at the moment it seems relatively cheap I think

100
00:05:50,279 --> 00:05:51,200
Speaker 1: last I saw it.

101
00:05:51,760 --> 00:05:53,960
Speaker 2: Yeah, and for the first time we're starting to see

102
00:05:53,960 --> 00:05:58,119
Speaker 2: average prices slightly below petrol prices. Diesel is a really

103
00:05:58,160 --> 00:06:01,839
Speaker 2: funny market and the reason for that is your listeners

104
00:06:01,880 --> 00:06:07,120
Speaker 2: probably wouldn't realize, but we actually sell twice as much

105
00:06:07,279 --> 00:06:10,839
Speaker 2: diesel in Australia as we do petrol. But most of

106
00:06:10,880 --> 00:06:16,799
Speaker 2: the buyers for that diesel industries and big companies, mining companies,

107
00:06:16,880 --> 00:06:19,599
Speaker 2: farms and all that sort of stuff, and they never

108
00:06:19,680 --> 00:06:23,640
Speaker 2: go to the retail market. They sign up supply contracts

109
00:06:23,360 --> 00:06:28,039
Speaker 2: with an oil company. So you might have a large

110
00:06:28,040 --> 00:06:31,839
Speaker 2: transport company and their trucks do pull into whatever brand

111
00:06:31,920 --> 00:06:34,720
Speaker 2: service station they've got the contract with, but they're paying

112
00:06:34,760 --> 00:06:39,120
Speaker 2: a special device, not the pump price. And so the

113
00:06:39,200 --> 00:06:42,840
Speaker 2: actual people who shop around for diesel, the private punters

114
00:06:43,360 --> 00:06:46,239
Speaker 2: like you and me that have got diesel cars, actually

115
00:06:46,400 --> 00:06:49,440
Speaker 2: is a much smaller market than the petrol market is

116
00:06:50,120 --> 00:06:54,720
Speaker 2: for retail buyers, so there's not the same competition that's there.

117
00:06:55,080 --> 00:06:58,760
Speaker 2: And diesel is also at a world level is a

118
00:06:58,760 --> 00:07:03,920
Speaker 2: funny sort of thing too, because it's in chemistry very

119
00:07:04,000 --> 00:07:09,920
Speaker 2: similar to heating oil, which the Europeans have been using

120
00:07:10,000 --> 00:07:12,840
Speaker 2: for their winter heating. So as we go into winter

121
00:07:13,040 --> 00:07:15,800
Speaker 2: beer winter, you start to see a bit more demand

122
00:07:15,840 --> 00:07:18,520
Speaker 2: for it over there. So it's really two, although they're

123
00:07:18,560 --> 00:07:22,640
Speaker 2: both fuels, have got two real different market dynamics about them.

124
00:07:22,720 --> 00:07:25,680
Speaker 1: Yeah. Interesting, all right, Mark, appreciate your insights. Thank you.

125
00:07:26,480 --> 00:07:27,320
Speaker 2: Thanks very interesting.

126
00:07:27,520 --> 00:07:31,920
Speaker 1: Mark Borulace from the RAA. So the upshot is and

127
00:07:31,960 --> 00:07:34,560
Speaker 1: it always comes down to hip pocket. If you see

128
00:07:34,600 --> 00:07:37,440
Speaker 1: it around cheap and at a dollar fifty four point

129
00:07:37,560 --> 00:07:40,320
Speaker 1: nine at the moment, and you need even quarter of

130
00:07:40,360 --> 00:07:44,640
Speaker 1: a tank, chuck it in because much better, much better

131
00:07:44,640 --> 00:07:47,560
Speaker 1: than paying a dollar ninety nine for unlettered ninety one