1 00:00:00,560 --> 00:00:03,560 Speaker 1: Last week we saw fuel prices jump from around a 2 00:00:03,560 --> 00:00:05,760 Speaker 1: dollar sixty to a dollar seventy per liter up to 3 00:00:06,120 --> 00:00:10,680 Speaker 1: over two dollars fifteen per liter. Did I say that right? 4 00:00:10,880 --> 00:00:14,000 Speaker 1: Jump from around that much up to that much. Sheella 5 00:00:14,120 --> 00:00:18,960 Speaker 1: in North Perth, for example, had two dollars seventeen last Wednesday. 6 00:00:19,079 --> 00:00:22,720 Speaker 1: So what's going on? Liam Wagner as an associate professor 7 00:00:22,760 --> 00:00:28,080 Speaker 1: at Curtin University and he joins us, good morning, Well liaming, Liam, 8 00:00:28,120 --> 00:00:30,639 Speaker 1: can you tell us why there's been another surge in 9 00:00:30,760 --> 00:00:31,960 Speaker 1: fuel prices. 10 00:00:33,560 --> 00:00:37,320 Speaker 2: Well, there's a couple of things going on. So obviously, 11 00:00:37,479 --> 00:00:41,239 Speaker 2: opek Plus announced that they were going to cut production 12 00:00:42,800 --> 00:00:48,279 Speaker 2: of their crude and that obviously pushes prices up. And 13 00:00:49,000 --> 00:00:53,640 Speaker 2: as Saudi Aramco, the Saudi National oil company, then started 14 00:00:53,680 --> 00:00:56,800 Speaker 2: to restrict the availability of their medium and heavy cruds 15 00:00:56,880 --> 00:01:00,440 Speaker 2: going into the Asian market, which again there's where we're 16 00:01:00,440 --> 00:01:03,720 Speaker 2: linked to where our petrol prices are linked to, and 17 00:01:03,720 --> 00:01:06,800 Speaker 2: then pushus up prices as well. There's been a number 18 00:01:06,840 --> 00:01:10,240 Speaker 2: of things happening in the US that have significantly increased 19 00:01:10,280 --> 00:01:14,800 Speaker 2: the price of gasoline over there, which some of which 20 00:01:14,840 --> 00:01:17,640 Speaker 2: are being driven by climate change. So extreme temperatures in 21 00:01:17,680 --> 00:01:24,679 Speaker 2: Texas and Louisiana have really restricted production of refining capacity 22 00:01:25,280 --> 00:01:27,880 Speaker 2: where most of the gasoline is refined in the US. 23 00:01:28,319 --> 00:01:30,399 Speaker 2: So you know, as we come to the end of 24 00:01:30,440 --> 00:01:34,080 Speaker 2: the US driving season, when the demand for gasolina is 25 00:01:34,280 --> 00:01:39,240 Speaker 2: very high, we're seeing prices over there being sustained, and 26 00:01:39,319 --> 00:01:41,560 Speaker 2: of course that flows onto Europe and then flows onto 27 00:01:41,600 --> 00:01:42,920 Speaker 2: Asia and as well. 28 00:01:42,920 --> 00:01:45,280 Speaker 3: Obviously Leanne we're talking to you today. So people have 29 00:01:45,280 --> 00:01:47,200 Speaker 3: the chance to fill up by Tuesdays generally the cheaper 30 00:01:47,280 --> 00:01:50,240 Speaker 3: day before the Wednesday lift after six am. But is 31 00:01:50,320 --> 00:01:52,680 Speaker 3: Perth you know we particularly banned here. Is it very 32 00:01:52,680 --> 00:01:54,480 Speaker 3: similar across all of the capitals right now? 33 00:01:55,600 --> 00:02:00,920 Speaker 2: Well, actually in Adelaide prices jumped forty cents on last 34 00:02:01,280 --> 00:02:05,520 Speaker 2: last Sunday night, so yeah, I mean it's they go 35 00:02:05,680 --> 00:02:10,320 Speaker 2: up sort of depending upon your proximity to refinery capacity. 36 00:02:10,880 --> 00:02:15,000 Speaker 2: So obviously Perthest. Quanana and there's import facilities as well, 37 00:02:15,520 --> 00:02:20,560 Speaker 2: but places like Adelaide and Sydney, you know, their proximity 38 00:02:20,560 --> 00:02:23,720 Speaker 2: to refinery capacity is quite limited. 39 00:02:24,240 --> 00:02:26,359 Speaker 1: So the further inland you go, too, I guess, the 40 00:02:26,600 --> 00:02:27,919 Speaker 1: more expensive, and of. 41 00:02:27,880 --> 00:02:31,480 Speaker 2: Course that's exactly right. The more remote you are, the 42 00:02:31,560 --> 00:02:35,280 Speaker 2: higher the prices will be because you're obviously paying for 43 00:02:35,320 --> 00:02:37,160 Speaker 2: the transport of the fuel to get to you. 44 00:02:37,400 --> 00:02:41,480 Speaker 1: Of course, is it likely to go up again the 45 00:02:41,520 --> 00:02:47,359 Speaker 1: next couple Okay, I think just pull that bad night offully. 46 00:02:51,680 --> 00:02:55,480 Speaker 2: I sort of don't want to absolutely people under any 47 00:02:55,480 --> 00:02:58,200 Speaker 2: illusion that changes are going to go down and be 48 00:02:58,240 --> 00:03:01,200 Speaker 2: stable again. I think that we're going to see prices 49 00:03:01,280 --> 00:03:05,920 Speaker 2: remain sort of fairly stable above a dollar eighty and 50 00:03:05,960 --> 00:03:08,960 Speaker 2: a dollar ninety. And you know, I think prices will 51 00:03:09,080 --> 00:03:11,960 Speaker 2: be sustained at that level simply because opek are going 52 00:03:12,000 --> 00:03:17,280 Speaker 2: to limit their production to maintain their revenue as we 53 00:03:17,360 --> 00:03:18,480 Speaker 2: start to get off oil. 54 00:03:19,320 --> 00:03:20,960 Speaker 3: All right, you don't want to be the reserve bank 55 00:03:21,000 --> 00:03:22,720 Speaker 3: governor that didn't work out so well for him, you 56 00:03:22,760 --> 00:03:24,000 Speaker 3: and not be honest. 57 00:03:23,919 --> 00:03:28,679 Speaker 2: No, But I mean, you know, I think that as 58 00:03:29,080 --> 00:03:34,440 Speaker 2: an oligopoly in an international market that has extraordinary market power, 59 00:03:35,560 --> 00:03:38,960 Speaker 2: you know we're going to see production limited. Saudi Iraanco 60 00:03:40,040 --> 00:03:44,200 Speaker 2: was obviously listed on a sock exchange quite recently and 61 00:03:44,320 --> 00:03:46,800 Speaker 2: to they announced their profits, and of course they made 62 00:03:46,840 --> 00:03:49,200 Speaker 2: a loss, so they're going to try and recover that 63 00:03:49,320 --> 00:03:52,800 Speaker 2: loss and to obviously keep prices high. 64 00:03:53,280 --> 00:03:55,000 Speaker 1: I mean, we would ask how long is it set 65 00:03:55,000 --> 00:03:56,560 Speaker 1: to last? But I mean I guess the answer is 66 00:03:57,080 --> 00:03:58,960 Speaker 1: it's never going to really come down again. 67 00:03:58,800 --> 00:04:01,600 Speaker 2: Is it. Oh, we going to see prices below I 68 00:04:01,640 --> 00:04:05,200 Speaker 2: think a dollar a dollar sixty for a long time. 69 00:04:05,280 --> 00:04:09,680 Speaker 2: If ever. Yeah, I mean I would you know, I 70 00:04:10,160 --> 00:04:14,280 Speaker 2: very hesitantly forecast the price of oil because I think 71 00:04:14,320 --> 00:04:18,039 Speaker 2: it's sort of so volatile and difficult. But I would 72 00:04:18,120 --> 00:04:21,880 Speaker 2: say that, you know, the bottom would have to be somewhere, 73 00:04:22,120 --> 00:04:24,560 Speaker 2: you know, maybe a dollar seventy. Yeah. 74 00:04:25,440 --> 00:04:27,159 Speaker 1: It kind of feels like only yesterday that we were 75 00:04:27,200 --> 00:04:31,760 Speaker 1: talking about patrols over a dollar you know, Yeah, I 76 00:04:31,800 --> 00:04:34,320 Speaker 1: mean it was yesterday. It was a while ago now, Lam. 77 00:04:34,400 --> 00:04:38,239 Speaker 3: Thanks for expertise, Liam, Yeah, my pleasure. 78 00:04:38,279 --> 00:04:39,159 Speaker 2: Thanks a lot. Yeah. 79 00:04:39,160 --> 00:04:40,680 Speaker 3: And as we mentioned there were you get the chance 80 00:04:40,720 --> 00:04:43,320 Speaker 3: to at least get some from under two bucks today 81 00:04:43,320 --> 00:04:44,279 Speaker 3: because it will go up again. 82 00:04:45,120 --> 00:04:46,159 Speaker 1: We're talking to backs. 83 00:04:46,720 --> 00:04:48,400 Speaker 2: I know, the norm, the norm. 84 00:04:48,520 --> 00:04:49,359 Speaker 3: It's so bizarre.