1 00:00:00,040 --> 00:00:01,559 Speaker 1: Part of the problem, of course, of having no real 2 00:00:01,600 --> 00:00:03,520 Speaker 1: ability to work out what happens next is to what 3 00:00:03,600 --> 00:00:05,640 Speaker 1: extent we start to guess and make it up. So 4 00:00:05,760 --> 00:00:07,840 Speaker 1: the oil story you've just heard, we're back below one 5 00:00:07,920 --> 00:00:11,639 Speaker 1: hundred so and oil touches everything economically, of course, doesn't it. 6 00:00:11,680 --> 00:00:13,520 Speaker 1: So what's happening at the bows of Simon perim As, 7 00:00:13,520 --> 00:00:14,960 Speaker 1: the CEO Tomo Fuel? 8 00:00:15,000 --> 00:00:16,079 Speaker 2: Good morning, Good morning, Mike. 9 00:00:16,200 --> 00:00:18,119 Speaker 1: I don't want to sound facetious about this, but is 10 00:00:18,160 --> 00:00:20,200 Speaker 1: this good for business at the moment or not? Are 11 00:00:20,200 --> 00:00:21,960 Speaker 1: we into this in lining up and getting as much 12 00:00:22,000 --> 00:00:23,319 Speaker 1: petrol as we can get our hands on. 13 00:00:24,400 --> 00:00:28,120 Speaker 2: Well, we've certainly seen an increase in demand, so over 14 00:00:28,120 --> 00:00:30,040 Speaker 2: the last week we sent of fifteen to twenty percent 15 00:00:30,080 --> 00:00:33,120 Speaker 2: increase and people filling up. They've obviously read the headlines 16 00:00:33,159 --> 00:00:35,680 Speaker 2: and filling up a little bit and often if they can. 17 00:00:36,080 --> 00:00:38,559 Speaker 2: But is it good for business the high fuel prices go. 18 00:00:38,720 --> 00:00:40,400 Speaker 2: I don't think it's good for anyone because they're just 19 00:00:40,479 --> 00:00:41,479 Speaker 2: dampings to mart. 20 00:00:41,479 --> 00:00:44,159 Speaker 1: Do you worry? The ComCom was instructed by the Financial 21 00:00:44,159 --> 00:00:47,040 Speaker 1: Ministry yesterday to keep a BDI on how you guys behave? 22 00:00:47,159 --> 00:00:49,319 Speaker 1: Are you behaving? Oh? 23 00:00:49,400 --> 00:00:51,599 Speaker 2: Certainly? And I think that's the ComCom feel that they 24 00:00:51,680 --> 00:00:53,680 Speaker 2: need to. Then I welcome it, and I think it's 25 00:00:53,680 --> 00:00:56,400 Speaker 2: a good opportunity to look at the entire supply chain 26 00:00:56,560 --> 00:00:59,200 Speaker 2: that imports, wholesale and even the retail pump price, because 27 00:00:59,200 --> 00:01:01,520 Speaker 2: I think Zeland is in the cusp of a very 28 00:01:01,560 --> 00:01:05,120 Speaker 2: fragile economic recovery, so we don't need gold plated pricing 29 00:01:05,240 --> 00:01:06,160 Speaker 2: through the supply chain. 30 00:01:06,480 --> 00:01:10,440 Speaker 1: A million texts so far going, the oil hasn't come through, 31 00:01:10,640 --> 00:01:13,479 Speaker 1: the ships are still at sea. Why am I paying 32 00:01:13,600 --> 00:01:17,560 Speaker 1: so much more? So quickly? The answer is what well the. 33 00:01:17,480 --> 00:01:21,600 Speaker 2: Industry price is on a replacement cost basis, but for 34 00:01:21,680 --> 00:01:23,760 Speaker 2: the likes of what Tima, we buy on a wiki 35 00:01:23,840 --> 00:01:26,200 Speaker 2: basis and we wash through that product through our system 36 00:01:26,280 --> 00:01:28,479 Speaker 2: every sort of three to four days, so you know 37 00:01:29,160 --> 00:01:32,720 Speaker 2: we're buying the more expensive product now. And I guess 38 00:01:32,720 --> 00:01:35,320 Speaker 2: when you've got a short sharp increase like this, there's 39 00:01:35,319 --> 00:01:37,160 Speaker 2: no escaping the higher fuel prices. 40 00:01:37,400 --> 00:01:40,080 Speaker 1: Yeah, do you concur with the Prime minister supply at 41 00:01:40,120 --> 00:01:41,880 Speaker 1: the moment, what we've got in the country, what's on 42 00:01:41,920 --> 00:01:44,360 Speaker 1: the sea at the moment, We're okay? 43 00:01:45,240 --> 00:01:47,800 Speaker 2: Yeah, I agree, I think we're okay. It's not a 44 00:01:47,840 --> 00:01:49,840 Speaker 2: supply ish at the moment, what we've got as a 45 00:01:49,880 --> 00:01:53,000 Speaker 2: price issue, because there's a lot of geopolitical risk price 46 00:01:53,080 --> 00:01:54,040 Speaker 2: into the market. 47 00:01:54,000 --> 00:01:57,880 Speaker 1: Right, what's the byte point for punters where they can't 48 00:01:57,880 --> 00:02:00,360 Speaker 1: afford it and we'll catch a bus. 49 00:02:01,120 --> 00:02:04,000 Speaker 2: I think that will get towards the three dollars three 50 00:02:04,040 --> 00:02:07,520 Speaker 2: dollars fifty mark, and I think on diesel about the 51 00:02:07,520 --> 00:02:11,480 Speaker 2: same and that's where economic activity will stop and then 52 00:02:11,520 --> 00:02:15,320 Speaker 2: people will just look at alternate and opportunities to transport. 53 00:02:15,400 --> 00:02:17,839 Speaker 2: So I think once it gets over that three dollar mark, 54 00:02:17,919 --> 00:02:21,600 Speaker 2: that's that's a point where things really do get tough. 55 00:02:21,800 --> 00:02:23,680 Speaker 1: I think we need to say calm, don't we, Because 56 00:02:23,720 --> 00:02:25,320 Speaker 1: I mean, what you saw with oil yesterday at one 57 00:02:25,400 --> 00:02:27,359 Speaker 1: twenty and you're seeing it this morning at ninety nine. 58 00:02:28,040 --> 00:02:31,160 Speaker 1: I mean things change rapidly within a day. Ninety nine 59 00:02:31,240 --> 00:02:33,399 Speaker 1: is not one twenty or anywhere close to it, is it? 60 00:02:34,400 --> 00:02:38,080 Speaker 2: No? Absolutely, it dropped quite significant overnight Brent crude, the 61 00:02:38,200 --> 00:02:42,440 Speaker 2: Singapore flats pricing that did close twenty dollars a barrel higher, 62 00:02:42,639 --> 00:02:46,360 Speaker 2: But obviously that market closed before the G seven country's 63 00:02:46,360 --> 00:02:49,760 Speaker 2: announcement about being ready to act if necessary around the 64 00:02:49,760 --> 00:02:53,239 Speaker 2: strategic reserve. So it is volatile, and I think We've 65 00:02:53,240 --> 00:02:55,280 Speaker 2: only really been in this for a week and a half, 66 00:02:55,320 --> 00:02:57,800 Speaker 2: so it's short, it's sharp, and you know, we just 67 00:02:57,800 --> 00:02:59,080 Speaker 2: need to take it every day that it comes. 68 00:02:59,240 --> 00:03:01,440 Speaker 1: I know everybody he wants answers, and they've all got 69 00:03:01,480 --> 00:03:03,960 Speaker 1: the questions crystal ball stuff. We don't know, do we? 70 00:03:04,080 --> 00:03:07,880 Speaker 1: I mean, isn't that the honest answer? We don't know absolutely. 71 00:03:07,880 --> 00:03:09,960 Speaker 2: And it's these commentators saying where it's going to go, 72 00:03:10,200 --> 00:03:12,520 Speaker 2: then they should be doing oil futures because I'll be 73 00:03:12,520 --> 00:03:14,520 Speaker 2: making more money than commentating on where it's going to go. 74 00:03:15,080 --> 00:03:18,280 Speaker 1: Well, said Simon Perum, who's the CEO at Why TIMEO Mike, 75 00:03:18,360 --> 00:03:20,560 Speaker 1: I appreciate you confident about the oil price issue. I 76 00:03:20,680 --> 00:03:24,640 Speaker 1: don't share your confidence. Damage, refineries, export infrastructure make this 77 00:03:24,680 --> 00:03:27,120 Speaker 1: a prolonged issue. It's not just a shipping logistics issue. 78 00:03:27,120 --> 00:03:29,079 Speaker 1: The crackspread will be the next biggest issue, and we'll 79 00:03:29,080 --> 00:03:33,000 Speaker 1: see this manifest and shortages of middle distillate, diesel and 80 00:03:33,080 --> 00:03:35,920 Speaker 1: jet fields. Cargoes of these two products already being diverted 81 00:03:35,920 --> 00:03:39,040 Speaker 1: from Africa to Asia while en route. The issue has 82 00:03:39,080 --> 00:03:40,840 Speaker 1: a lot of nuance. Appreciate it. 83 00:03:40,920 --> 00:03:44,360 Speaker 2: Larry For more from the Mic Asking Breakfast listen Live 84 00:03:44,440 --> 00:03:45,200 Speaker 2: to News Talks. 85 00:03:45,200 --> 00:03:48,400 Speaker 1: It'd be from six am weekdays, or follow the podcast 86 00:03:48,440 --> 00:03:49,320 Speaker 1: on iHeartRadio