Terry Collins: AA Principal Policy Advisor on the warning that fuel prices could go up again

Global conflict other the Iran war is expected to keep knocking up petrol prices. 

The Automobile Association says prices are unlikely to get any lower for a while.

Spokesperson Terry Collins says the Strait of Hormuz is still disrupted, but fewer ships are stuck - and others are sailing alternative routes. 

Collins says conflict in other countries will also impact supplies. 

"The effectiveness of the Ukrainian attacks on the oil refineries in Russia - what it's done is created rationing so severe that in Russia, they've banned the export of diesel fuel."

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Andrew Dickens.

Speaker 2 (00:01):
So there's been a warning that fuel prices have probably
gone as low as they're going to go for a while.
And this warning this time comes from the Automobile Association,
and so we're joined by their for your spokesperson, Terry
Collins Helit.

Speaker 3 (00:12):
Terry, Yeah, good afternoon, Andrew.

Speaker 2 (00:14):
Why do you think diesel's on the rise?

Speaker 3 (00:17):
Look at the effectiveness of the Ukrainian attacks on oil
refineries in Russia. What it's done is credit rationing so
severeal in Russia that the banned the export of diesel
fuel diesel sorry, Russia is the second largest exporter of
diesel fuel, and so automatically last week we saw the
price of refined product of diesel double in the price

(00:39):
of oil for the same amount. So generally you don't
have refining costs that high, but it seemed a signal
to the market that it could be short supply for
a while. And immediately those cracking spreads as are known as,
increased to one hundred percent of the price of oil.
So that's a clear indication that we've got some bit
of pain to come.

Speaker 2 (00:57):
So we should then budget for that as well. I
opened the the program by talking about the screens that
the oil traders are watching, and they're looking at these
screens and they're looking at the price, and it's saying
to them that there's likely when you look at the
futures compared to the way the prices come down while
there's been this so called peace, they're saying there everything's
a lining for a major move upwards. Do you agree.

Speaker 3 (01:20):
I'm not sure about a major move. The thing about
the strait of the moves and the conflict that's reignited
there is today. I looked at the vehicle I sorry,
vessel tracking then as much as I could because someone
in the dark, your sixty one tank is still on
the golf. It's two percent of the fleet. So it's
never been an oil production problem. It's been an oil production, sorry,
transportation problem. So we've got ninety eight of the percent

(01:41):
of the fleet outside the golf, and they can move oil.
It's not going to have the same impact that it
had previously when it caught a larger over five hundred
vessels inside the golf. So that's a bit of plus
and monuses. I see a little bit about it. We've
got reduced in the trees around. There's a bit of
pressure with this rushing diesel coming off market. We will
see price increases, but nothing in the manner of what

(02:04):
we saw at the beginning of the gold forward.

Speaker 2 (02:05):
Well, that's some good news and we'll cling on to that,
and I thank you for your time today, Terry. Terry
Collins is the AA Fuels Spokesmanute.

Speaker 1 (02:12):
For more from Hither Duplessy Allen Drive. Listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio.