1 00:00:06,415 --> 00:00:09,735 Speaker 1: You're listening to Amma mea podcast. 2 00:00:11,815 --> 00:00:15,895 Speaker 2: Right now. Australia isn't out of fuel, but how many 3 00:00:15,975 --> 00:00:19,895 Speaker 2: days do we have left? Petrol prices have hit a 4 00:00:19,975 --> 00:00:22,575 Speaker 2: record high, with an average of two dollars and thirty 5 00:00:22,575 --> 00:00:26,295 Speaker 2: eight cents elter nationwide, while oil prices have climbed to 6 00:00:26,375 --> 00:00:29,495 Speaker 2: around one hundred and thirty US dollars a barrel as 7 00:00:29,535 --> 00:00:32,294 Speaker 2: global tensions and the Iran war threaten the flow of 8 00:00:32,295 --> 00:00:36,295 Speaker 2: oil into the country. The warning signs are flashing behind 9 00:00:36,335 --> 00:00:40,175 Speaker 2: the scenes. Regional towns are seeing rationing, prices are climbing, 10 00:00:40,214 --> 00:00:43,934 Speaker 2: there's panic buying, stockpiling, and supply is at risk of 11 00:00:44,015 --> 00:00:48,375 Speaker 2: running low. So what's really going on here and how 12 00:00:48,415 --> 00:00:52,094 Speaker 2: close are we to a real shortage? It's the Quikie 13 00:00:52,095 --> 00:00:55,655 Speaker 2: for Wednesday, March twenty five. I'm Taylor Strano. Here's Claire 14 00:00:55,735 --> 00:00:57,615 Speaker 2: Murphy with the latest news headlines. 15 00:00:58,255 --> 00:01:01,215 Speaker 1: Thanks Taylor. Married at First Sight expert Male Shilling has 16 00:01:01,255 --> 00:01:05,015 Speaker 1: passed away, aged fifty four. Shilling's husband posted on social 17 00:01:05,095 --> 00:01:08,375 Speaker 1: media lie last night saying Melanie Jane Brisbane Shiling passed 18 00:01:08,375 --> 00:01:12,295 Speaker 1: away peacefully surrounded by love. Sheiling had been diagnosed with 19 00:01:12,335 --> 00:01:15,055 Speaker 1: colon cancer in twenty twenty three and had the tumor 20 00:01:15,135 --> 00:01:20,015 Speaker 1: surgically removed, telling the world not to ignore symptoms, stop and. 21 00:01:19,975 --> 00:01:24,895 Speaker 3: Pay attention to your body. Please take this experience that 22 00:01:24,935 --> 00:01:27,695 Speaker 3: I've had and apply it to your own life. Already, 23 00:01:27,775 --> 00:01:31,535 Speaker 3: I'm getting loads of messages from so many of you saying, ah, 24 00:01:31,535 --> 00:01:33,895 Speaker 3: thanks for the wake up call. I'm going to get 25 00:01:33,895 --> 00:01:37,135 Speaker 3: a scan tomorrow. My tummy doesn't feel right. I'm going 26 00:01:37,175 --> 00:01:38,095 Speaker 3: to get it checked out. 27 00:01:38,415 --> 00:01:40,935 Speaker 1: She continued to film Maths both in the UK and 28 00:01:40,975 --> 00:01:44,775 Speaker 1: in Australia while undergoing chemotherapy, but announced in February that 29 00:01:44,815 --> 00:01:46,855 Speaker 1: she was stepping away from the show to focus on 30 00:01:46,855 --> 00:01:50,175 Speaker 1: her health. Then this month, she revealed her cancer diagnosis 31 00:01:50,375 --> 00:01:53,655 Speaker 1: was now terminal. The disease which first impacted her colon 32 00:01:53,695 --> 00:01:56,415 Speaker 1: spreading to the left side of her brain. Her husband 33 00:01:56,415 --> 00:01:58,895 Speaker 1: wrote on Instagram, in her final moments, when I thought 34 00:01:58,935 --> 00:02:02,175 Speaker 1: cancer had taken away her ability to speak, she ushered 35 00:02:02,175 --> 00:02:05,135 Speaker 1: me closer and whispered a message for Maddie, referring to 36 00:02:05,135 --> 00:02:07,895 Speaker 1: their doors and me that will sustain me for the 37 00:02:07,935 --> 00:02:09,975 Speaker 1: rest of my life. He went on to say that 38 00:02:10,055 --> 00:02:13,215 Speaker 1: it took all her remaining strength, and that gesture, he said, 39 00:02:13,535 --> 00:02:16,895 Speaker 1: summed up Melzi perfectly. Even then, her only thought was 40 00:02:16,935 --> 00:02:20,015 Speaker 1: for Maddie and me. Israel has revealed that they planned 41 00:02:20,015 --> 00:02:23,734 Speaker 1: to occupy a large area of southern Lebanon. Israeli Defense 42 00:02:23,815 --> 00:02:27,655 Speaker 1: Minister Israel Katz has previously threatened Lebanon's government that it 43 00:02:27,695 --> 00:02:31,335 Speaker 1: would lose territory if it didn't disarm Hesbela, the militant 44 00:02:31,415 --> 00:02:34,655 Speaker 1: group backed by Tehran that drew Lebanon into the US 45 00:02:34,735 --> 00:02:37,655 Speaker 1: Israeli War on Iran when it fired into Israel on 46 00:02:37,735 --> 00:02:41,454 Speaker 1: March two. The military has destroyed five bridges over the 47 00:02:41,535 --> 00:02:45,295 Speaker 1: Latani River since March thirteen, and has accelerated the demolition 48 00:02:45,375 --> 00:02:48,495 Speaker 1: of homes in Lebanese villages close to the Israeli border 49 00:02:48,775 --> 00:02:51,135 Speaker 1: as part of a campaign that Israel says is aimed 50 00:02:51,135 --> 00:02:55,014 Speaker 1: at Hesbalah and not Lebanese civilians. On Tuesday, Cats said 51 00:02:55,015 --> 00:02:57,295 Speaker 1: in a meeting with the military chief of staff that 52 00:02:57,375 --> 00:03:00,535 Speaker 1: they would control the remaining bridges and the security zone 53 00:03:00,615 --> 00:03:03,695 Speaker 1: up to the Latani to create a defensive buffer and 54 00:03:03,775 --> 00:03:06,935 Speaker 1: push the threat of terror attacks away away from Israeli communities. 55 00:03:07,575 --> 00:03:11,055 Speaker 1: Miley Cyrus says the twentieth anniversary special of Hannah Montana 56 00:03:11,135 --> 00:03:13,415 Speaker 1: is a gift not just to the fans, but for herself. 57 00:03:13,415 --> 00:03:13,655 Speaker 4: Too. 58 00:03:14,135 --> 00:03:17,055 Speaker 1: The Disney Channel TV series, which started in two thousand 59 00:03:17,095 --> 00:03:20,095 Speaker 1: and six and ran for four seasons, launched Cyrus to 60 00:03:20,175 --> 00:03:23,095 Speaker 1: fame when she was just thirteen, playing Miley Stewart, an 61 00:03:23,135 --> 00:03:25,335 Speaker 1: average teenage girl who lived a double life as a 62 00:03:25,375 --> 00:03:28,695 Speaker 1: famous pop singer named Hannah Montana and who constantly had 63 00:03:28,735 --> 00:03:31,175 Speaker 1: to try to conceal her true identity from the public. 64 00:03:31,615 --> 00:03:33,614 Speaker 1: Her father in the show was played by her real 65 00:03:33,655 --> 00:03:37,855 Speaker 1: life dad, Billy Ray Cyrus. The Hannah Montana twentieth Anniversary special, 66 00:03:37,895 --> 00:03:41,255 Speaker 1: streaming on Disney Plus, will see Cyrus revisit her most 67 00:03:41,335 --> 00:03:44,175 Speaker 1: memorable moments in an interview with Alex Cooper, the host 68 00:03:44,255 --> 00:03:46,935 Speaker 1: of the Call Her Daddy podcast. The special will also 69 00:03:47,015 --> 00:03:50,135 Speaker 1: feature a behind the scenes look at Cyrus's archival collection, 70 00:03:50,535 --> 00:03:54,615 Speaker 1: as well as appearances from familiar faces and some surprise guests. 71 00:03:54,655 --> 00:03:57,215 Speaker 1: Cyrus was joined on the red carpet of the special 72 00:03:57,295 --> 00:04:00,335 Speaker 1: launch event in La with her Hannah Montana co stars, 73 00:04:00,575 --> 00:04:02,895 Speaker 1: but not with her dad, whom Miley's had a strained 74 00:04:02,895 --> 00:04:06,335 Speaker 1: relationship within recent years. Billy raytho It does appear in 75 00:04:06,335 --> 00:04:10,655 Speaker 1: the special. The appearance of mysterious posters around Paris are 76 00:04:10,735 --> 00:04:13,695 Speaker 1: fueling rumors that singer Selene Dion is making a comeback. 77 00:04:14,055 --> 00:04:16,935 Speaker 1: In the past week, posters featuring some of Dion's most 78 00:04:16,974 --> 00:04:20,214 Speaker 1: famous lyrics and song titles have popped up around the city. 79 00:04:20,495 --> 00:04:23,775 Speaker 1: French Canadian outlet La Press reporting that the campaign is 80 00:04:23,815 --> 00:04:27,295 Speaker 1: a teaser for Dion's first major live shows since her 81 00:04:27,335 --> 00:04:30,855 Speaker 1: health struggles forced her off the road. According to the publication, 82 00:04:30,975 --> 00:04:33,295 Speaker 1: the five time Grammy winner is set to launch a 83 00:04:33,335 --> 00:04:36,735 Speaker 1: residency style run at the forty thousand seat Paris Let 84 00:04:36,735 --> 00:04:41,135 Speaker 1: Defense Arena, performing two concerts each week throughout September and October. 85 00:04:41,495 --> 00:04:44,214 Speaker 1: Dion had originally been scheduled to play the venue in 86 00:04:44,255 --> 00:04:46,974 Speaker 1: twenty twenty as part of her Courage World tour, but 87 00:04:47,015 --> 00:04:49,535 Speaker 1: the dates were postponed due to the pandemic, and then 88 00:04:49,575 --> 00:04:53,495 Speaker 1: canceled again following her diagnosis with stiff person syndrome. Neither 89 00:04:53,535 --> 00:04:56,695 Speaker 1: Dion nor her team have officially confirmed the residency, but 90 00:04:56,735 --> 00:04:59,535 Speaker 1: the singer has posted a carousel of images of herself 91 00:04:59,575 --> 00:05:02,255 Speaker 1: in Paris on her Instagram, some from when she was 92 00:05:02,295 --> 00:05:04,495 Speaker 1: a young girl, then a young woman, to her performance 93 00:05:04,495 --> 00:05:07,295 Speaker 1: at the Paris Games and inside the theater itself. The 94 00:05:07,335 --> 00:05:09,535 Speaker 1: captain says, I don't know how to tell you. 95 00:05:10,015 --> 00:05:14,135 Speaker 2: Thanks Claire. Next petrol, panic buying and price pressure. 96 00:05:18,895 --> 00:05:24,495 Speaker 5: The householes need to be better informed about the magniture 97 00:05:24,535 --> 00:05:27,455 Speaker 5: of the challenge we are facing. I think they'd be 98 00:05:27,455 --> 00:05:30,775 Speaker 5: better prepared if they understood what kind of challenge we 99 00:05:30,815 --> 00:05:31,695 Speaker 5: are facing today. 100 00:05:33,135 --> 00:05:36,935 Speaker 2: That's doctor fittiir Birol, the executive director of the International 101 00:05:37,055 --> 00:05:40,535 Speaker 2: Energy Agency, speaking to the National Press Club in Canberra 102 00:05:40,655 --> 00:05:44,535 Speaker 2: this week. He makes a good point. We the households 103 00:05:44,655 --> 00:05:47,615 Speaker 2: can't afford to remain unaware of the scale of the 104 00:05:47,735 --> 00:05:52,055 Speaker 2: challenge ahead, which rings true as the Prime Minister alluded 105 00:05:52,055 --> 00:05:56,335 Speaker 2: to the price problem not going away anytime soon. According 106 00:05:56,375 --> 00:05:59,055 Speaker 2: to the Nine Newspapers, the PM, speaking at a Mineral 107 00:05:59,055 --> 00:06:02,175 Speaker 2: Council's dinner this week, was quoted as saying, even if 108 00:06:02,215 --> 00:06:04,655 Speaker 2: the war in the Middle East wrapped up tomorrow, there 109 00:06:04,655 --> 00:06:07,495 Speaker 2: would still be a long economic tale to reckon with. 110 00:06:08,415 --> 00:06:13,135 Speaker 2: But why is that. Nrma's Peter Kuri can explain. 111 00:06:13,775 --> 00:06:17,415 Speaker 6: Look, it's certainly not as bad as some of the reporting. 112 00:06:17,535 --> 00:06:20,695 Speaker 6: And the reason I say that is because whatever shortages 113 00:06:20,775 --> 00:06:23,735 Speaker 6: we currently have in Australia are largely driven by demand 114 00:06:23,855 --> 00:06:25,735 Speaker 6: and not supply. And what I mean by that is 115 00:06:26,215 --> 00:06:27,815 Speaker 6: if you go back to the last time we had 116 00:06:27,815 --> 00:06:31,815 Speaker 6: record high petrol prices in Australia. It was when Russia 117 00:06:31,815 --> 00:06:34,854 Speaker 6: invaded Ukraine, and that was just coming out of the 118 00:06:34,855 --> 00:06:37,335 Speaker 6: back of COVID lockdown. There wasn't a lot of oil 119 00:06:37,375 --> 00:06:39,535 Speaker 6: on the global market because everyone was at home and 120 00:06:39,535 --> 00:06:41,735 Speaker 6: no one was using oil. Then we all came out 121 00:06:41,775 --> 00:06:44,414 Speaker 6: of lockdown at the same time and everyone got in 122 00:06:44,455 --> 00:06:45,974 Speaker 6: their cars at the same time. 123 00:06:46,095 --> 00:06:49,095 Speaker 7: It was a supply issue. Russia then invaded Ukraine. 124 00:06:49,175 --> 00:06:52,095 Speaker 6: At the time, Russia was in the top four oil producers, 125 00:06:52,375 --> 00:06:56,895 Speaker 6: there were sanctions, so everything that caused that shortfall was 126 00:06:56,975 --> 00:06:57,815 Speaker 6: supply driven. 127 00:06:58,135 --> 00:06:59,775 Speaker 8: This is largely driven by demand. 128 00:07:00,215 --> 00:07:03,295 Speaker 6: The supply had been pretty consistent coming into Australia, but 129 00:07:03,415 --> 00:07:05,455 Speaker 6: what we saw was people started to panic when they 130 00:07:05,535 --> 00:07:09,135 Speaker 6: saw high prices. They started filling up jerry cans. In 131 00:07:09,175 --> 00:07:12,095 Speaker 6: some terminals. People were buying fuel at four times the 132 00:07:12,215 --> 00:07:13,175 Speaker 6: rate they normally would. 133 00:07:13,415 --> 00:07:14,975 Speaker 8: So what we saw in the first few. 134 00:07:14,855 --> 00:07:19,655 Speaker 6: Hourys after the war started in Iran was prices spiked 135 00:07:19,775 --> 00:07:22,295 Speaker 6: in our three bigger cities, and they shouldn't have. 136 00:07:22,535 --> 00:07:23,455 Speaker 8: They were already at. 137 00:07:23,335 --> 00:07:25,135 Speaker 7: The top of the price cycles because those cities have 138 00:07:25,255 --> 00:07:26,415 Speaker 7: price cycles. 139 00:07:26,135 --> 00:07:27,335 Speaker 8: So they were already high. 140 00:07:27,735 --> 00:07:30,495 Speaker 6: They were meant to start falling and they didn't, and 141 00:07:30,575 --> 00:07:33,655 Speaker 6: so people overnight started seeing two dollars thirty two dollars 142 00:07:33,695 --> 00:07:36,495 Speaker 6: forty and we had gotten used to paying pretty low 143 00:07:36,575 --> 00:07:38,335 Speaker 6: prices for about fourteen months. 144 00:07:38,495 --> 00:07:40,695 Speaker 8: In fact, they were as low as they'd been since COVID. 145 00:07:41,335 --> 00:07:43,255 Speaker 6: So I think what happened was people saw that and 146 00:07:43,295 --> 00:07:46,575 Speaker 6: they panicked at the price. One of two things, and 147 00:07:46,655 --> 00:07:50,215 Speaker 6: preferably the latter, is what will ultimately get prices back 148 00:07:50,255 --> 00:07:51,095 Speaker 6: to a normal level. 149 00:07:51,655 --> 00:07:53,415 Speaker 8: Either they reopened the Strait. 150 00:07:53,175 --> 00:07:55,535 Speaker 6: Of hall Moves where one fifth of the oil comes through, 151 00:07:55,575 --> 00:07:57,855 Speaker 6: which has been closed pretty much since the conflict started, 152 00:07:58,095 --> 00:08:00,095 Speaker 6: or the war ends and we go back to some 153 00:08:00,135 --> 00:08:02,895 Speaker 6: sort of normality in the Middle East, whatever damage has 154 00:08:02,975 --> 00:08:06,215 Speaker 6: been done to local refineries and terminals a fit if any, 155 00:08:06,695 --> 00:08:09,455 Speaker 6: and we go back to a normal supply and demand 156 00:08:09,695 --> 00:08:12,255 Speaker 6: world where we were only three and a bit weeks ago. 157 00:08:13,095 --> 00:08:15,415 Speaker 6: One of those two things we believe has to happen 158 00:08:15,455 --> 00:08:17,215 Speaker 6: for the price to come down. And the reason why 159 00:08:17,215 --> 00:08:20,415 Speaker 6: I say ladder is because that is what we'll guarantee 160 00:08:20,575 --> 00:08:22,135 Speaker 6: more stable falls in prices. 161 00:08:22,215 --> 00:08:24,495 Speaker 8: We never want to go back to where we are today. 162 00:08:24,615 --> 00:08:27,655 Speaker 6: Unfortunately, we haven't seen much to give us any degree 163 00:08:27,695 --> 00:08:30,295 Speaker 6: of confidence that either of those things are going to 164 00:08:30,295 --> 00:08:34,255 Speaker 6: happen anytime soon. It's really hard telling the public that, 165 00:08:34,334 --> 00:08:36,934 Speaker 6: because I know people want good news. What we can 166 00:08:37,015 --> 00:08:39,054 Speaker 6: do is control our supply side of things to make 167 00:08:39,054 --> 00:08:41,175 Speaker 6: sure that there's enough fuel in the market. The average 168 00:08:41,175 --> 00:08:43,255 Speaker 6: prices are pretty much where we would expect them to be, 169 00:08:43,335 --> 00:08:45,295 Speaker 6: so the kind of gap between the wholesale and the 170 00:08:45,335 --> 00:08:47,895 Speaker 6: retail price has closed in a lot. So it's not 171 00:08:47,935 --> 00:08:50,255 Speaker 6: like there are huge profit margins out there right now. 172 00:08:50,375 --> 00:08:53,615 Speaker 6: There certainly were for some service stations in the early days, 173 00:08:53,975 --> 00:08:56,895 Speaker 6: but we really do need things to get back to 174 00:08:56,975 --> 00:08:58,215 Speaker 6: normal in the Middle East. 175 00:08:58,215 --> 00:09:00,214 Speaker 8: If we're going to see some price changes. 176 00:09:00,054 --> 00:09:04,135 Speaker 2: Okay, well to help maybe relieve some people's anxiety around this, Peter, 177 00:09:04,375 --> 00:09:07,175 Speaker 2: can you explain to us us where does our fuel 178 00:09:07,215 --> 00:09:10,415 Speaker 2: come from from? When people pick up the pump, Where 179 00:09:10,455 --> 00:09:12,415 Speaker 2: has it gone through step by step to get to 180 00:09:12,495 --> 00:09:13,015 Speaker 2: that place. 181 00:09:13,455 --> 00:09:14,175 Speaker 8: Very good question. 182 00:09:14,495 --> 00:09:18,415 Speaker 6: So Australia uses about fifty five billion liters of different 183 00:09:18,415 --> 00:09:21,095 Speaker 6: types of fuel the year. The overwhelming majority of that 184 00:09:21,095 --> 00:09:24,015 Speaker 6: comes from overseas and it comes in two forms. 185 00:09:24,455 --> 00:09:27,055 Speaker 8: It either comes in crude so it's not petrol. 186 00:09:27,095 --> 00:09:29,055 Speaker 6: It's crude oil that we're drilled out of the ground, 187 00:09:29,655 --> 00:09:31,855 Speaker 6: and it arrives as crude and then it goes to 188 00:09:31,895 --> 00:09:35,094 Speaker 6: Australia's two refineries, and in our refineries we turn it 189 00:09:35,135 --> 00:09:37,535 Speaker 6: into petrol and diesel. Most of our crude comes from 190 00:09:37,575 --> 00:09:42,934 Speaker 6: the United States, some of it comes from places like Malaysia, Vietnam, Brunei. 191 00:09:43,615 --> 00:09:46,815 Speaker 6: We get almost no crewe directly from the Middle East 192 00:09:47,215 --> 00:09:49,935 Speaker 6: or Russia. So a portion of our fuel comes to 193 00:09:50,015 --> 00:09:54,415 Speaker 6: us unrefined as just pure crude. The overwhelming majority of it, 194 00:09:54,455 --> 00:09:57,535 Speaker 6: about seventy to eighty percent of what is imported, is 195 00:09:57,615 --> 00:10:00,535 Speaker 6: actual petrol and diesel, and that comes to us from 196 00:10:00,615 --> 00:10:05,095 Speaker 6: Asian refineries, so Singapore, India, some in Malaysia. We used 197 00:10:05,095 --> 00:10:06,815 Speaker 6: to have a a lot of refineries in Australia, we 198 00:10:06,855 --> 00:10:09,335 Speaker 6: had about eight. We're now down to two. And the 199 00:10:09,375 --> 00:10:10,895 Speaker 6: reason that they did less. 200 00:10:10,695 --> 00:10:12,375 Speaker 7: And less refining in Australia was cost. 201 00:10:12,775 --> 00:10:15,214 Speaker 6: It was cheaper for the oil companies to get their 202 00:10:15,215 --> 00:10:19,415 Speaker 6: fuel refined from these much bigger, more modern refineries. In Asia, 203 00:10:19,495 --> 00:10:21,455 Speaker 6: the scale was something like three to one, so it's 204 00:10:21,495 --> 00:10:24,535 Speaker 6: three times cheaper to get our fuel refined in Asia 205 00:10:24,615 --> 00:10:27,615 Speaker 6: and brought here as petrol and diesel. It arrives at 206 00:10:27,615 --> 00:10:31,334 Speaker 6: the terminal as petrol and diesel, it then gets put 207 00:10:31,375 --> 00:10:34,135 Speaker 6: into a tanker, and that tanker gets distributed to your 208 00:10:34,135 --> 00:10:37,495 Speaker 6: petrol station. The price that it gets set at is 209 00:10:37,535 --> 00:10:39,695 Speaker 6: what we call the terminal gate price, or the wholesale 210 00:10:39,775 --> 00:10:42,775 Speaker 6: price at the terminal. What we pay at the bowser 211 00:10:43,215 --> 00:10:45,415 Speaker 6: is the wholesale price which is set at the terminal 212 00:10:45,455 --> 00:10:48,775 Speaker 6: on the port, plus effectively the profit margin of the 213 00:10:48,815 --> 00:10:50,215 Speaker 6: service station or the oil company. 214 00:10:50,455 --> 00:10:52,694 Speaker 2: So if the majority of our fuel isn't coming from 215 00:10:52,775 --> 00:10:56,135 Speaker 2: the Middle East, then why are people so concerned on 216 00:10:56,215 --> 00:10:58,895 Speaker 2: what impact does the conflict over there at the moment 217 00:10:59,015 --> 00:11:02,175 Speaker 2: have on what ultimately we are able to put in 218 00:11:02,215 --> 00:11:03,455 Speaker 2: our cars and at what price. 219 00:11:04,255 --> 00:11:05,335 Speaker 8: That's the old petro dollar. 220 00:11:05,975 --> 00:11:10,015 Speaker 6: So oil is a globally traded commodity and prices are 221 00:11:10,054 --> 00:11:13,495 Speaker 6: set globally. Even though a lot of our crude oil 222 00:11:13,535 --> 00:11:15,135 Speaker 6: doesn't come from the Middle East, A lot of the 223 00:11:15,215 --> 00:11:18,214 Speaker 6: crude that goes into the refineries in Asia does come 224 00:11:18,215 --> 00:11:20,815 Speaker 6: from the Middle East, or share a fair portion of it. 225 00:11:20,935 --> 00:11:23,735 Speaker 6: Prices are set globally because it's a global commodity and 226 00:11:23,775 --> 00:11:26,895 Speaker 6: they're setting largely in US dollars. Although some people may 227 00:11:26,935 --> 00:11:29,935 Speaker 6: have seen that Iran's now selling oil, but they're selling 228 00:11:30,095 --> 00:11:34,335 Speaker 6: the Chinese currency. So effectively, it doesn't really matter where 229 00:11:34,375 --> 00:11:37,095 Speaker 6: the problem happens. If there's a problem that affects oil, 230 00:11:37,655 --> 00:11:40,415 Speaker 6: we all feel it, and so effectively, if the Middle 231 00:11:40,455 --> 00:11:42,895 Speaker 6: East needses, the rest of the WORL catches a cold. 232 00:11:43,015 --> 00:11:45,615 Speaker 6: If there's a crisis in one region, it's nowhere near us. 233 00:11:45,975 --> 00:11:47,535 Speaker 6: The price is always set globally. 234 00:11:47,735 --> 00:11:51,575 Speaker 2: Unfortunately, there's questions around if we're seeing this shortage of 235 00:11:51,615 --> 00:11:55,295 Speaker 2: fuel in Australia, can we release our fuel reserves? Can 236 00:11:55,335 --> 00:11:58,695 Speaker 2: you explain what that is? And if we have in 237 00:11:58,735 --> 00:11:59,895 Speaker 2: fact released any of it. 238 00:12:00,255 --> 00:12:02,855 Speaker 6: As I mentioned earlier, most of our fuel gets refined 239 00:12:03,215 --> 00:12:06,775 Speaker 6: in Asia, Korea, Singapore comes to US as refined fuel. 240 00:12:06,975 --> 00:12:10,495 Speaker 6: We've kept two refineries open. Those two refineries are running 241 00:12:10,575 --> 00:12:14,895 Speaker 6: largely for strategic reserve purposes. We have about thirty days 242 00:12:14,935 --> 00:12:18,135 Speaker 6: storage for diesel and we've got a bit over thirty 243 00:12:18,175 --> 00:12:20,775 Speaker 6: day storage for petrol. Every country is meant to have 244 00:12:20,815 --> 00:12:24,375 Speaker 6: a strategic reserve, and the recommendation from the IEA or 245 00:12:24,375 --> 00:12:27,814 Speaker 6: the International agency is to have ninety days. So we're 246 00:12:27,815 --> 00:12:31,214 Speaker 6: obviously way off that the strategic reserve is largely meant 247 00:12:31,255 --> 00:12:34,175 Speaker 6: to be used in the event that the tankers stop arriving. 248 00:12:34,775 --> 00:12:37,735 Speaker 6: That's never happened in Australian history. If the oil tankers 249 00:12:37,735 --> 00:12:39,375 Speaker 6: were to stop arriving, if we were to get no 250 00:12:39,495 --> 00:12:43,175 Speaker 6: oil arrive in our country or fuel, we would then 251 00:12:43,215 --> 00:12:45,895 Speaker 6: rely on the strategic reserve as best as we can 252 00:12:46,015 --> 00:12:48,775 Speaker 6: to keep the country moving. But that's not for you 253 00:12:48,815 --> 00:12:51,095 Speaker 6: and I to put in our fuel. That reserve is 254 00:12:51,135 --> 00:12:55,495 Speaker 6: to be used by the military, emergency services, crucial transport 255 00:12:55,895 --> 00:12:59,095 Speaker 6: to keep the country moving until whatever catastrophic event that 256 00:12:59,135 --> 00:13:03,814 Speaker 6: happened globally is resolved. We have twice now released some 257 00:13:03,895 --> 00:13:08,094 Speaker 6: of the strategic reserve have closed gaps in supply. The 258 00:13:08,215 --> 00:13:11,735 Speaker 6: government did that recently because of the shortages that were 259 00:13:11,775 --> 00:13:15,335 Speaker 6: brought about by panic buying and stockpiling. We started to 260 00:13:15,335 --> 00:13:19,295 Speaker 6: see regional service stations, some regional service stations in particular, 261 00:13:19,735 --> 00:13:21,855 Speaker 6: running out and running out of diesel, which was a 262 00:13:21,855 --> 00:13:24,495 Speaker 6: warri because the economy runs on diesel. Some of that 263 00:13:24,975 --> 00:13:27,575 Speaker 6: was released to closing that gap, but that's quite rare 264 00:13:27,575 --> 00:13:29,455 Speaker 6: that we would do that, and once you release it, 265 00:13:29,655 --> 00:13:32,815 Speaker 6: the government normally restocks it. Sometimes they wait for the 266 00:13:32,815 --> 00:13:34,735 Speaker 6: oil prices to go down, because that makes sense. You 267 00:13:34,735 --> 00:13:37,335 Speaker 6: don't want to be buying all at record high prices, 268 00:13:37,375 --> 00:13:38,854 Speaker 6: but that will get restocked. 269 00:13:39,215 --> 00:13:41,775 Speaker 8: We definitely need to increase how much we keep. Of course, 270 00:13:41,815 --> 00:13:42,695 Speaker 8: it's not enough. 271 00:13:44,375 --> 00:13:47,495 Speaker 2: Beyond petrol. Other real world impacts of this conflict are 272 00:13:47,575 --> 00:13:50,855 Speaker 2: starting to stack up. We've already seen travel plans thrown 273 00:13:50,855 --> 00:13:54,454 Speaker 2: into chaos, airlines hiking prices to reflect the rising cost 274 00:13:54,535 --> 00:13:58,015 Speaker 2: in fuel, and would be holiday makers reconsidering the routes 275 00:13:58,054 --> 00:14:02,055 Speaker 2: to their destinations. Farmers are deciding whether to park tractors 276 00:14:02,175 --> 00:14:06,015 Speaker 2: or risk planting or crop they can't afford to. Fuelers 277 00:14:06,054 --> 00:14:08,694 Speaker 2: are tied up at docks because they can't get enough diesel. 278 00:14:09,335 --> 00:14:12,735 Speaker 2: Each of those issues feedback into food prices and supply. 279 00:14:13,415 --> 00:14:16,695 Speaker 2: If it costs more to plant, harvest, and transport produce, 280 00:14:17,015 --> 00:14:20,015 Speaker 2: that eventually shows up in what you pay at the supermarket, 281 00:14:20,615 --> 00:14:23,535 Speaker 2: not to mention goods imported from overseas, which are also 282 00:14:23,575 --> 00:14:27,655 Speaker 2: bearing the brand of increased fuel and diesel prices. So 283 00:14:27,895 --> 00:14:29,895 Speaker 2: what does this all look like for you and I 284 00:14:30,055 --> 00:14:32,535 Speaker 2: when we do our weekly grocery shop or commute to 285 00:14:32,615 --> 00:14:36,215 Speaker 2: work each morning? Doctor Paul Harrison is a senior lecturer 286 00:14:36,255 --> 00:14:40,255 Speaker 2: and consumer behavior expert from Deacon Business School. Well, let's 287 00:14:40,255 --> 00:14:43,415 Speaker 2: start with fuel. We've been told not to panic buy 288 00:14:43,535 --> 00:14:46,375 Speaker 2: or stockpile. Fuel can you explain to us why this 289 00:14:46,695 --> 00:14:50,215 Speaker 2: kind of behavior is bad. For lack of a better word. 290 00:14:50,255 --> 00:14:52,015 Speaker 4: There will be flow on effects, and so there'll be 291 00:14:52,015 --> 00:14:54,095 Speaker 4: all sorts of things that have an effect that is 292 00:14:54,175 --> 00:14:58,895 Speaker 4: related to mostly energy. It may be slow those changes, 293 00:14:58,935 --> 00:15:02,695 Speaker 4: and they may be small, but I think we're also 294 00:15:02,775 --> 00:15:05,815 Speaker 4: suffering from the long tail of COVID, and so the 295 00:15:05,855 --> 00:15:10,695 Speaker 4: combination of the cutbacks that people might be experiencing at workplaces, 296 00:15:10,815 --> 00:15:14,695 Speaker 4: combined with the increase in costs across the board, people 297 00:15:14,695 --> 00:15:17,455 Speaker 4: will just find things a little bit tougher for a while. 298 00:15:17,575 --> 00:15:19,215 Speaker 4: And I think that's going to be the thing, is 299 00:15:19,215 --> 00:15:21,615 Speaker 4: that you've got this combination of both people having to 300 00:15:21,655 --> 00:15:24,095 Speaker 4: work harder, not necessarily being paid as well, or not 301 00:15:24,135 --> 00:15:28,095 Speaker 4: getting increases in salary at the same level. Prices just 302 00:15:28,215 --> 00:15:30,495 Speaker 4: kind of slowly going up as time goes on. 303 00:15:30,855 --> 00:15:32,735 Speaker 2: Yeah, I mean, we throw in a cost of living 304 00:15:32,815 --> 00:15:36,735 Speaker 2: crisis and inflation is not necessarily going down at the 305 00:15:36,775 --> 00:15:38,455 Speaker 2: rate that we would like, and it's kind of a 306 00:15:38,495 --> 00:15:43,215 Speaker 2: perfect storm which can show up in some pretty unreal ways. 307 00:15:43,295 --> 00:15:46,135 Speaker 2: I mean, we've been told already not to stockpile fuel, 308 00:15:46,215 --> 00:15:48,535 Speaker 2: but we're starting to see some of that behavior spread 309 00:15:48,575 --> 00:15:50,135 Speaker 2: out into the supermarket. 310 00:15:50,295 --> 00:15:52,415 Speaker 4: Yeah, and I think what we see too is that, 311 00:15:52,535 --> 00:15:55,415 Speaker 4: particularly with things like stockpiling or panic buying or anything 312 00:15:55,455 --> 00:15:58,255 Speaker 4: like that, is that it kind of has a cascade effect, 313 00:15:58,495 --> 00:16:01,775 Speaker 4: and the more that we talk about it, for example, 314 00:16:01,815 --> 00:16:03,935 Speaker 4: in the media, the more that people think this is 315 00:16:03,935 --> 00:16:06,615 Speaker 4: an issue that is actually some being serious. Therefore I 316 00:16:06,695 --> 00:16:08,535 Speaker 4: need to respond to it. And we saw that. I mean, 317 00:16:08,535 --> 00:16:10,615 Speaker 4: I think probably one of the best experiments was the 318 00:16:10,655 --> 00:16:13,495 Speaker 4: toilet paper panic buying back in twenty twenty. Is that 319 00:16:14,015 --> 00:16:16,055 Speaker 4: for a while there it wasn't actually an issue until 320 00:16:16,095 --> 00:16:19,095 Speaker 4: people started talking about it as an issue, and then 321 00:16:19,135 --> 00:16:22,775 Speaker 4: it became an issue for people and consumers and humans generally. 322 00:16:22,895 --> 00:16:25,255 Speaker 4: We look at signals to help us to work out 323 00:16:25,255 --> 00:16:27,535 Speaker 4: what we need to do, and I think the big 324 00:16:27,575 --> 00:16:31,055 Speaker 4: signals that we'll see is the price of petrol and 325 00:16:31,095 --> 00:16:33,495 Speaker 4: that kind of serves, as I guess, an indicator of 326 00:16:33,575 --> 00:16:36,495 Speaker 4: everything else. And on top of that, then what will 327 00:16:36,535 --> 00:16:38,775 Speaker 4: happen is that people will change their behavior a little bit. 328 00:16:38,855 --> 00:16:41,215 Speaker 4: It won't be across the board, it won't be everybody 329 00:16:41,255 --> 00:16:43,575 Speaker 4: doing the same thing. It will affect in different ways. 330 00:16:43,855 --> 00:16:47,295 Speaker 2: If prices go up, people are less likely to spend 331 00:16:47,415 --> 00:16:49,935 Speaker 2: as much money on fuel, and that impacts their behavior. 332 00:16:50,135 --> 00:16:51,855 Speaker 2: So what are some of the ways that we could 333 00:16:51,855 --> 00:16:55,335 Speaker 2: be seeing that manifest Is that people reconsidering if they 334 00:16:55,415 --> 00:16:57,815 Speaker 2: drive to work every day, Oh. 335 00:16:57,615 --> 00:16:59,215 Speaker 4: For sure, And I think that's going to be one 336 00:16:59,215 --> 00:17:01,175 Speaker 4: of the effects. And what you're talking about their tailor 337 00:17:01,255 --> 00:17:04,254 Speaker 4: is actually an issue, which is we can see the 338 00:17:04,254 --> 00:17:07,294 Speaker 4: prices going up on the petrol like it is really clear, 339 00:17:07,415 --> 00:17:10,975 Speaker 4: and petrol prices for just the way that they're displayed. 340 00:17:11,014 --> 00:17:13,975 Speaker 4: We see them when we're traveling around, so they're very visible. 341 00:17:14,294 --> 00:17:17,655 Speaker 4: We see them all the time, and they're incredibly psychologically powerful. 342 00:17:17,975 --> 00:17:20,815 Speaker 4: And so what it does is that it actually makes 343 00:17:21,175 --> 00:17:24,734 Speaker 4: households feel poorer even if they're not, and the feeling 344 00:17:24,774 --> 00:17:27,414 Speaker 4: of feeling poor will then kind of play out in 345 00:17:27,534 --> 00:17:30,734 Speaker 4: what we see in their purchasing. It may even affect 346 00:17:30,774 --> 00:17:35,335 Speaker 4: the way that supermarkets and retailers actually do pricing as well, 347 00:17:35,334 --> 00:17:37,654 Speaker 4: because again we like to think that a lot of 348 00:17:37,655 --> 00:17:40,695 Speaker 4: the decision making around pricing is done from a rational perspective. 349 00:17:40,734 --> 00:17:43,415 Speaker 4: But I know I've been teaching consumer behavior marketing now 350 00:17:43,455 --> 00:17:45,894 Speaker 4: for twenty five years. A lot of it is a 351 00:17:45,935 --> 00:17:49,174 Speaker 4: motive the chief marketing officers of those big retailers. A 352 00:17:49,215 --> 00:17:51,414 Speaker 4: lot of it is a guest let's see what happens, 353 00:17:51,455 --> 00:17:54,494 Speaker 4: a little mini experiment to see what happens, and they 354 00:17:54,574 --> 00:17:56,215 Speaker 4: may be able to say, well, you know, like we 355 00:17:56,294 --> 00:17:58,374 Speaker 4: have to make these adjustments as time goes on. So 356 00:17:58,415 --> 00:18:00,895 Speaker 4: I think I keep coming back to this idea that 357 00:18:01,294 --> 00:18:06,014 Speaker 4: all human behavior comes from an emotional framework, and ultimately, 358 00:18:06,175 --> 00:18:08,774 Speaker 4: in the end, it's people's kind of sense of loss. 359 00:18:08,774 --> 00:18:13,254 Speaker 4: Aversion this idea of households just feeling poorer, it's going 360 00:18:13,294 --> 00:18:15,014 Speaker 4: to effect spending in a big way. 361 00:18:15,294 --> 00:18:19,615 Speaker 2: It's interesting that concept of experimenting with price. I mean, 362 00:18:19,655 --> 00:18:23,734 Speaker 2: at a time like this, with so much uncertainty, should 363 00:18:24,014 --> 00:18:27,854 Speaker 2: supermarkets and marketers and whatever be allowed to prey on 364 00:18:27,935 --> 00:18:30,374 Speaker 2: people's emotions like that? Is there something that should be 365 00:18:30,494 --> 00:18:31,294 Speaker 2: keeping them in check. 366 00:18:31,534 --> 00:18:33,375 Speaker 4: It's a tricky one. It's a really tricky one because 367 00:18:33,375 --> 00:18:35,374 Speaker 4: the a triple C has to kind of work in 368 00:18:35,415 --> 00:18:40,895 Speaker 4: a justice framework that is built around rationality. And I've 369 00:18:40,935 --> 00:18:43,414 Speaker 4: been an expert witness in certain cases, and when you 370 00:18:43,455 --> 00:18:46,935 Speaker 4: start talking about the kind of emotive elements, they can't 371 00:18:46,975 --> 00:18:50,894 Speaker 4: be considered. And so even the regulation has issues with 372 00:18:50,975 --> 00:18:53,534 Speaker 4: this idea of if they're not behaving in a way 373 00:18:53,574 --> 00:18:56,455 Speaker 4: that's colluding or anything like that, or doesn't fit the 374 00:18:56,695 --> 00:18:59,295 Speaker 4: kind of legal framework, then there actually isn't a lot 375 00:18:59,334 --> 00:19:01,374 Speaker 4: that regulators can do. And we've seen that, you know, 376 00:19:01,415 --> 00:19:03,294 Speaker 4: with the way that the Atriple C has tried to 377 00:19:03,334 --> 00:19:05,374 Speaker 4: step in and had to go through a very expensive 378 00:19:05,854 --> 00:19:10,254 Speaker 4: legal process to really get retailers to behave in a 379 00:19:10,334 --> 00:19:12,854 Speaker 4: moral way, and I think that's always going to be 380 00:19:12,935 --> 00:19:16,374 Speaker 4: a difficulty. We want these organizations to behave in a 381 00:19:16,415 --> 00:19:19,294 Speaker 4: way which is respectful to the community, but also we 382 00:19:19,334 --> 00:19:22,295 Speaker 4: are all investors, we all have superannuation, so we all 383 00:19:22,334 --> 00:19:26,254 Speaker 4: benefit from them behaving in certain ways that as consumers 384 00:19:26,294 --> 00:19:27,374 Speaker 4: we don't necessarily like. 385 00:19:27,895 --> 00:19:30,774 Speaker 2: Okay, so we can't rely solely on the A Triple 386 00:19:30,774 --> 00:19:34,414 Speaker 2: C to necessarily keep supermarkets in check. So what are 387 00:19:34,455 --> 00:19:36,615 Speaker 2: some of the things that we could maybe adopt as 388 00:19:36,774 --> 00:19:40,814 Speaker 2: the consumer. We've talked about things like catching public transport 389 00:19:40,975 --> 00:19:43,774 Speaker 2: or working from home arrangements to help curb the price 390 00:19:43,774 --> 00:19:46,214 Speaker 2: of fuel. What else is sort of available would you 391 00:19:46,294 --> 00:19:47,575 Speaker 2: maybe tell people to consider. 392 00:19:47,774 --> 00:19:49,774 Speaker 4: I think we just change our habits a little bit, 393 00:19:50,014 --> 00:19:53,734 Speaker 4: and just in certain areas, like small changes. Again, the 394 00:19:53,774 --> 00:19:56,054 Speaker 4: critical thing here is not to think I'm going to 395 00:19:56,135 --> 00:19:59,415 Speaker 4: change everything right now. Is to what we know again 396 00:19:59,494 --> 00:20:01,814 Speaker 4: about changes of habits, is that if you try and 397 00:20:01,895 --> 00:20:04,055 Speaker 4: do everything at once, you eventually kind of fall off 398 00:20:04,054 --> 00:20:06,054 Speaker 4: the bandwagon kind of thing. I think the thing is 399 00:20:06,215 --> 00:20:08,254 Speaker 4: like you say, catch up a transport or work from 400 00:20:08,294 --> 00:20:11,734 Speaker 4: home if you can, or perhaps talk to the bank 401 00:20:11,814 --> 00:20:14,614 Speaker 4: and see if you can delay payments of mortgages or 402 00:20:14,655 --> 00:20:16,935 Speaker 4: something like that. One of the things I would always 403 00:20:16,975 --> 00:20:20,414 Speaker 4: say to people is reach out to organizations that you 404 00:20:20,574 --> 00:20:22,895 Speaker 4: have any financial relationship with and see if they can 405 00:20:22,935 --> 00:20:26,614 Speaker 4: do something for you, and don't necessarily assume that they can't. 406 00:20:26,814 --> 00:20:29,414 Speaker 2: So if you can afford to buy an ev or 407 00:20:29,415 --> 00:20:31,774 Speaker 2: wax some solar panels on this week, that might be 408 00:20:31,814 --> 00:20:34,894 Speaker 2: the solution for you. Otherwise it might just be taking 409 00:20:34,935 --> 00:20:36,895 Speaker 2: a bit of a step back and looking at, say 410 00:20:36,895 --> 00:20:37,854 Speaker 2: the weekly budget. 411 00:20:38,054 --> 00:20:39,574 Speaker 4: I think so, and I think if you don't have 412 00:20:39,614 --> 00:20:42,454 Speaker 4: a budget, it is smart to go through that and 413 00:20:42,494 --> 00:20:45,375 Speaker 4: see ultimately what it is that you could cut back on. 414 00:20:45,774 --> 00:20:47,614 Speaker 4: It does sound very boring to have a budget, but 415 00:20:47,655 --> 00:20:49,615 Speaker 4: sometimes it's a good idea just to see what you're 416 00:20:49,614 --> 00:20:52,334 Speaker 4: spending your money on. And sometimes, as I learned about 417 00:20:52,375 --> 00:20:54,054 Speaker 4: thirty years ago when I went and spoke to a 418 00:20:54,054 --> 00:20:56,334 Speaker 4: financial plant, there's nothing you can cut back on. We 419 00:20:56,334 --> 00:20:58,374 Speaker 4: were told that we were poor I think this is 420 00:20:58,415 --> 00:21:00,774 Speaker 4: another thing, is that sometimes you actually can't cut back 421 00:21:00,814 --> 00:21:03,294 Speaker 4: on anything, but at least then it's useful for you 422 00:21:03,375 --> 00:21:05,934 Speaker 4: to know that you're doing a really good job, and 423 00:21:05,975 --> 00:21:08,094 Speaker 4: then you can kind of say, okay, well there's nothing 424 00:21:08,094 --> 00:21:08,774 Speaker 4: more I can do. 425 00:21:09,895 --> 00:21:12,014 Speaker 2: Thanks so much for taking some time to feed your 426 00:21:12,054 --> 00:21:14,334 Speaker 2: mind with us today. Hey, if you're enjoying what you're hearing, 427 00:21:14,494 --> 00:21:17,135 Speaker 2: we'd love to hear from you. Whatever app you're listening 428 00:21:17,254 --> 00:21:19,895 Speaker 2: in right now, there should be an option to rate 429 00:21:20,294 --> 00:21:22,574 Speaker 2: or leave a comment on the pod. We would so 430 00:21:22,695 --> 00:21:25,694 Speaker 2: appreciate it if you do so, thanks in advance. The 431 00:21:25,774 --> 00:21:29,174 Speaker 2: Quickie is produced by me Taylor Strano, Laria Rophi, and 432 00:21:29,415 --> 00:21:32,455 Speaker 2: Claire Murphy, with audio production by lou Hill. 433 00:21:36,415 --> 00:21:39,535 Speaker 1: Momma Mea acknowledges the traditional owners of land and waters 434 00:21:39,574 --> 00:21:41,254 Speaker 1: that this podcast is recorded on.