Latest / Best of Business / Terry Collins: AA Principal Policy Advisor on the price of 91 petrol dropping below $3 a litre

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Terry Collins: AA Principal Policy Advisor on the price of 91 petrol dropping below $3 a litre · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News talks'd be follow
• 0:12
  Speaker 1: this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: I've got good news for you on the petrol price.
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  Speaker 2: The average price of ninety one is now officially under
• 0:21
  Speaker 2: three dollars a liter for the first time in more
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  Speaker 2: than three months. Gas Buy has it at two dollars
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  Speaker 2: ninety nine. AA's fuel spokesman Terry Collins is for us
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  Speaker 2: A Terry.
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  Speaker 3: Yeah, hi Heaver, how are you.
• 0:31
  Speaker 2: I'm well mate? Is it surprising to you to you
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  Speaker 2: how quickly this has come below three dollars?
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  Speaker 3: Again, I'm not surprising how quickly it's got blow three dollars.
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  Speaker 3: I'm surprised that the price of crude oils dropped ten
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  Speaker 3: percent in a week now down to around about seventy
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  Speaker 3: two dollars and for August future. So it looks like
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  Speaker 3: this good news is going to continue through July and
• 0:49
  Speaker 3: into August.
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  Speaker 2: How far is it going to go down yet?
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  Speaker 3: I think you're going to be closer to two fifty
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  Speaker 3: than three dollars, So we're in between. What we're seeing
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  Speaker 3: now is big, specially particularly tomorrow, Tuesday and on Thursdays,
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  Speaker 3: so you could see your difference of fifty cents a
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  Speaker 3: lead depending on where you fill up. So my advice
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  Speaker 3: to your listeners, if you all go look for the
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  Speaker 3: cheapest place, you'll force all the other prices down as well.
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  Speaker 2: Oh how good. Now, when it as it tracks down,
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  Speaker 2: is it going to hit a floor that's slightly higher
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  Speaker 2: than what it was pre war because of the damage
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  Speaker 2: to the infrastructure.
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  Speaker 3: Well not, for a variety of reasons. It was a
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  Speaker 3: better week before Christmas. I've got those sixty dollars. That's
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  Speaker 3: the cost of production for the shale oil. So they
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  Speaker 3: weren't even breaking even on that one around about eighty dollars.
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  Speaker 3: As a bark they tried to go for we're sitting
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  Speaker 3: a little bit under that now. But to keep the
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  Speaker 3: prices from even more ridiculously high, they had to exhaust
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  Speaker 3: some of the reserves. They've got to now replenish that.
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  Speaker 3: So that'll be putting some demand on not just every
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  Speaker 3: day demand, but filling back up the tanks in case
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  Speaker 3: something else happens again. And so that's going to kill
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  Speaker 3: us keep a little price pressure upwards. I see it
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  Speaker 3: getting a lot better. I don't see it getting as
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  Speaker 3: good as it was at the end of the year,
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  Speaker 3: so not so bad. Probably. The other indicator is the
• 2:01
  Speaker 3: Family Support Package Day for about one hundred and forty
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  Speaker 3: three thousand people with kids. It needs four weeks of
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  Speaker 3: fuel under three dollar before that comes off. I'm pretty
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  Speaker 3: confident that it's going to be off at the end
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  Speaker 3: of July, and then'll obviously save the government some money
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  Speaker 3: as well.
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  Speaker 2: Yeah, good stuff. Hey, Now listen, explain to me why
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  Speaker 2: Wellington's so much cheaper than everywhere else.
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  Speaker 3: We've got some great little competition here with the low
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  Speaker 3: cost operators. We've got CV Road and they've all lined
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  Speaker 3: up in a row. At the moment somebody drops a price,
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  Speaker 3: everybody follows it quickly because they're all competing for volume,
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  Speaker 3: which is my note. That's what I'm saying to your listeners.
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  Speaker 3: Get the cheap one. You're forced to guy out the
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  Speaker 3: road to go and drop his price as well because
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  Speaker 3: he needs to compete with you.
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  Speaker 2: How good is that? Hey? Thank you, Terry, appreciate it.
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  Speaker 2: Terry Collins, AA Fuel spokesperson.
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