Latest / 360 with Katie Woolf / AANT General Manager Edon Bell provides an update on fuel prices a week after the fuel excise was reinstated

Transcript

AANT General Manager Edon Bell provides an update on fuel prices a week after the fuel excise was reinstated · 360 with Katie Woolf

• 0:00
  Speaker 1: But we do know that there has been a lot
• 0:02
  Speaker 1: of discussion, certainly in recent weeks and months about petrol
• 0:07
  Speaker 1: prices and the fuel excise ended late last month, with
• 0:10
  Speaker 1: many now keeping a very close eye on this situation
• 0:12
  Speaker 1: and bracing for those prices to go up. At this stage,
• 0:16
  Speaker 1: there has been a gradual but quite a slow increase
• 0:19
  Speaker 1: from some, but it's not been dramatic. Now joining me
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  Speaker 1: on the line is Eden Bell from the aaent T.
• 0:25
  Speaker 1: Good morning to you, Eden, Good morning Kati, Thanks so
• 0:29
  Speaker 1: much for your time. Eden. From the aaentt's perspective, has
• 0:33
  Speaker 1: there been much change since that excise ended?
• 0:38
  Speaker 2: Well as we expected. The terminal gate price increased by
• 0:42
  Speaker 2: the twenty three cents or whatever it was, so we
• 0:45
  Speaker 2: saw a media effect at the TGP, but the market,
• 0:49
  Speaker 2: as you've just highlighted, is still sitting relatively stable. It's
• 0:57
  Speaker 2: just worth noting that with the exercise kicking in last
• 1:00
  Speaker 2: I believe it was.
• 1:01
  Speaker 3: The the margin between the difference between the terminal gate
• 1:08
  Speaker 3: price and the pump average.
• 1:13
  Speaker 2: At the moment it brought it back to about two cents,
• 1:15
  Speaker 2: So the margin between or the difference was taken up
• 1:20
  Speaker 2: with that increase of the t GP. So as it
• 1:22
  Speaker 2: currently sits. There's not a there's not a lot of
• 1:26
  Speaker 2: room between the GGB price and the actual pump price itself.
• 1:30
  Speaker 1: But yeah, I had wondered that, but I'd certainly notice
• 1:33
  Speaker 1: that as well. And what I was fascinated by because
• 1:36
  Speaker 1: I had sort of expected the bowser price to go
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  Speaker 1: up pretty well immediately, hadn't really expected it to go
• 1:41
  Speaker 1: up at the terminal gate. So is that where we're
• 1:44
  Speaker 1: sort of saw that change when it came to the
• 1:46
  Speaker 1: fuel excise ending.
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  Speaker 2: So the exercise is applicable at the point where the
• 1:52
  Speaker 2: truck leaves the terminal, so as it was at the
• 1:56
  Speaker 2: start when the exercise was caart Overnight, we saw that
• 2:02
  Speaker 2: ex as the TGP dropped within a day and so,
• 2:06
  Speaker 2: but it took about well at least there was an
• 2:09
  Speaker 2: extended period before the market reacted and at the end
• 2:13
  Speaker 2: of the day we would expect probably the return when
• 2:16
  Speaker 2: the excise kicked back in. So I don't, you know,
• 2:19
  Speaker 2: I didn't feel there was ever going to be an
• 2:20
  Speaker 2: immediate effect at the pump with the excise coming into
• 2:24
  Speaker 2: play or being reintroduced back last week. You know, there's
• 2:29
  Speaker 2: time for that fuel that needs to move through the
• 2:32
  Speaker 2: existing tanks and so we would have been concerned if
• 2:37
  Speaker 2: that was immediately passed on at the pump had that
• 2:40
  Speaker 2: been the case. But as it stands, you know, we're
• 2:43
  Speaker 2: sort of week past that date of the excise kicking
• 2:46
  Speaker 2: in and the market sitting relatively stable. What we don't
• 2:51
  Speaker 2: have any control over, unfortunately, is the international pricing. The
• 2:56
  Speaker 2: I see theres a slide up lift there, and that's
• 2:59
  Speaker 2: old were going to impact on the TGP and that
• 3:02
  Speaker 2: will have some flow on effect at some point. So
• 3:06
  Speaker 2: whilst we are anticipating in the medium term that we're
• 3:10
  Speaker 2: likely to see an increase that I don't think it's
• 3:12
  Speaker 2: going to be the shock twenty three sent overnight that
• 3:15
  Speaker 2: people were suggesting was going to occur.
• 3:17
  Speaker 1: Yeah, good, well, I think we'll all be pleased to
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  Speaker 1: hear that.
• 3:20
  Speaker 3: Eden.
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  Speaker 1: When are you well, what are you expecting to see?
• 3:23
  Speaker 1: I guess when it does come to those prices going up.
• 3:26
  Speaker 1: By the sounds of it, you know it is going
• 3:28
  Speaker 1: to happen at the bowser pretty soon.
• 3:32
  Speaker 2: Well inevitably we will. I mean, if one can only hope.
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  Speaker 2: An ideal situation would be that the TGP continues to
• 3:40
  Speaker 2: fall and which wouldn't put that added pressure on retailers
• 3:44
  Speaker 2: to increase the price at the fuel bowser. But look
• 3:48
  Speaker 2: at I guess the clear message we've always put out
• 3:51
  Speaker 2: there is you need to shop around. I mean, no
• 3:55
  Speaker 2: single operator wants to see someone drive down or pass
• 3:58
  Speaker 2: them to the next operator and miss out on that sale.
• 4:02
  Speaker 2: So you know, it's a free and open market and
• 4:05
  Speaker 2: I highly encourage consumers to shop around. Today there is
• 4:11
  Speaker 2: still around about a six seven cent margin between actually no,
• 4:16
  Speaker 2: it's probably closer to nine cents between the highest and
• 4:20
  Speaker 2: lowest price, and so that warrants shopping to go and
• 4:24
  Speaker 2: get the best price. Yeah, I mean, it's clear cost
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  Speaker 2: of living pressure as the top of mind for just
• 4:31
  Speaker 2: about every territory. And I'd say, don't support the operators
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  Speaker 2: that are pushing prices high. Support the one that you're
• 4:39
  Speaker 2: going to get the best price on the day. And
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  Speaker 2: you know, there's plenty of information available to consumers to
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  Speaker 2: make an informed choice. And so you've got the mind
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  Speaker 2: fuel app, and at just introduce its own app which
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  Speaker 2: includes those same pricings to allow you to make a
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  Speaker 2: better decision.
• 4:56
  Speaker 1: Even there, there certainly has been a lot of talk
• 5:00
  Speaker 1: recent weeks from well the CLP is planning on introducing
• 5:04
  Speaker 1: some legislation. The Opposition introducing some legislation to the Parliament
• 5:08
  Speaker 1: next week aimed at forcing those retailers to publish their
• 5:12
  Speaker 1: profit margins. I mean, do you think that something like
• 5:15
  Speaker 1: that would work.
• 5:18
  Speaker 2: What we support is for a free and open market.
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  Speaker 2: It's not clear on whether that would be regulating the
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  Speaker 2: market or not, but there's plenty of evidence to suggest
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  Speaker 2: that a regulated market isn't the path to head down.
• 5:32
  Speaker 2: So what will that Transparency for consumers is absolutely key,
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  Speaker 2: and that's that box has been ticked with the availability
• 5:41
  Speaker 2: of life pricing and for consumers to make that choice.
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  Speaker 2: So and I don't know that necessarily the margin that
• 5:51
  Speaker 2: sits between the TGP as an average to the pump
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  Speaker 2: price is not currently regulated. But what will drive that
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  Speaker 2: down is competition and healthy competition. And so you know,
• 6:03
  Speaker 2: we're actually what we would push for and advocate for
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  Speaker 2: is that focus on activities that are going to drive
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  Speaker 2: that competition in the market to keep prices in check.
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  Speaker 2: That's certainly got to be front of mind for everyone.
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  Speaker 2: And consumers play, as I say, a vital role in
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  Speaker 2: that path. So, I mean a good example is the
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  Speaker 2: amount of red tape. I know one particular site where
• 6:29
  Speaker 2: they were trying to get down in our springs, trying
• 6:32
  Speaker 2: to get a service station up and running, which would
• 6:34
  Speaker 2: have introduced competition, but due to the level of red tape,
• 6:37
  Speaker 2: they withdrew from that pursuing that course. So there are
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  Speaker 2: other avenues that need to be also considered to help
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  Speaker 2: drive that competition and help keep prices down. But at
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  Speaker 2: the end of the day, the price one thing is
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  Speaker 2: to look at the variants that sits between the terminal
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  Speaker 2: gate price and the pump. But as I say, what
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  Speaker 2: we can't control is those Internet national influencing influencing the
• 7:02
  Speaker 2: TGP and of course the Aussie dollar and the strength
• 7:06
  Speaker 2: of the Aussie dollar will ultimately play a part in
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  Speaker 2: that as well. So the strong message is get out
• 7:12
  Speaker 2: there and utilize the information available to you shop around
• 7:17
  Speaker 2: for the best deal. Well, I know that with mortgage
• 7:21
  Speaker 2: rate you look at, the take up of remortgaging is
• 7:24
  Speaker 2: probably at record high. People are conscious of the cost
• 7:27
  Speaker 2: of living pressure and are actively looking for a better deal.
• 7:30
  Speaker 2: I'd say the same should apply to feel don't be complacent,
• 7:34
  Speaker 2: utilize the office available to you and actively seek that
• 7:37
  Speaker 2: best price and support those retailers that are putting the
• 7:41
  Speaker 2: best price out there.
• 7:42
  Speaker 1: Well. Eden Bell from the aa NT I really appreciate
• 7:45
  Speaker 1: your time this morning. Thanks so much for chatting with us,
• 7:48
  Speaker 1: Absolute pleasure. Thank you,