Latest / 360 with Katie Woolf / Katie spoke with Automobile Association Northern Territory CEO Anthony Hill about petrol prices in the Territory

Transcript

Katie spoke with Automobile Association Northern Territory CEO Anthony Hill about petrol prices in the Territory · 360 with Katie Woolf

• 0:00
  Speaker 1: Well you are listening to Mix one oh four point
• 0:02
  Speaker 1: nine and we know that the price of petrol has
• 0:04
  Speaker 1: certainly been a bit of a concern in recent months.
• 0:07
  Speaker 1: We've seen it rise and the latest Affordability Index from
• 0:10
  Speaker 1: the Australian Automobile Association the Triple A, found the cost
• 0:14
  Speaker 1: of transport was going up markedly across all states and
• 0:18
  Speaker 1: territories in city and country areas. Now it is something
• 0:22
  Speaker 1: which probably isn't a huge surprise if you've been filling
• 0:26
  Speaker 1: your vehicle up recently. Joining me on the line is
• 0:28
  Speaker 1: Anthony Hill, the CEO of the AAANT. Good morning to you, Anthony.
• 0:34
  Speaker 2: Good morning Katie. Hell are you yeah?
• 0:36
  Speaker 1: Really well Anthony, what exactly did the report look at?
• 0:41
  Speaker 2: So the report, the report's been around a little while
• 0:43
  Speaker 2: now and it's a quarterlyr report which is which is
• 0:46
  Speaker 2: done by the Automabile Association now peak body of the clubs,
• 0:50
  Speaker 2: and so they take into account a full range of
• 0:53
  Speaker 2: costs that family space when they own a car. So
• 0:56
  Speaker 2: there's there's the upfront costs as well as on own costs,
• 1:00
  Speaker 2: so there's carl owned for payments, registration, CTP, licensing, servicing
• 1:05
  Speaker 2: and tires, fuel and also insurance.
• 1:09
  Speaker 1: And how you know, how are we looking here in
• 1:12
  Speaker 1: the Northern territory when you add all of those costs up,
• 1:15
  Speaker 1: and you know, are we fair in the territory or
• 1:18
  Speaker 1: are we finding it quite difficult.
• 1:21
  Speaker 2: We've certainly seen some increases, but that's also been relevant
• 1:24
  Speaker 2: across the country. So we rate every major capital city
• 1:29
  Speaker 2: and now there's also regional to Alice Springs is in
• 1:32
  Speaker 2: the mix with obviously many other regional areas of Australia.
• 1:37
  Speaker 2: But in the capital cities where we actually are the
• 1:41
  Speaker 2: seventh out of eight, we ranked seventh, so not too
• 1:46
  Speaker 2: bad in comparison to like Sydney, Melbourne and Brisbane. But
• 1:49
  Speaker 2: take into account, you know, the tolls and those sorts
• 1:51
  Speaker 2: of things that they they're having to face there which
• 1:53
  Speaker 2: we don't have here. But since the last report, it's
• 1:58
  Speaker 2: it's about the percent of a typical family's income goes
• 2:03
  Speaker 2: on transport.
• 2:05
  Speaker 1: It's a lot, isn't it. And I guess we all
• 2:06
  Speaker 1: understand that, you know that it needs to happen, particularly
• 2:10
  Speaker 1: in a place like Darwen where you know we don't
• 2:13
  Speaker 1: have as much access to public transport. How are those
• 2:18
  Speaker 1: petrol prices then sort of impacting us at this point
• 2:20
  Speaker 1: because they've seen right around the globe and particularly in
• 2:24
  Speaker 1: australia's seen those prices go right up in recent months.
• 2:28
  Speaker 2: We have, we have, and that's that's probably the biggest
• 2:30
  Speaker 2: factorily in this latest report that we've seen fuel increase.
• 2:34
  Speaker 2: That's been the largest increase out of any of the costs.
• 2:37
  Speaker 2: And I don't think you know, when we're looking at pricing,
• 2:39
  Speaker 2: there's been a couple of major economic factors that are
• 2:42
  Speaker 2: driving at pricing of fuel and emerging from the lockdowns.
• 2:48
  Speaker 2: And you know that we've had transportation manufacturings picked up
• 2:52
  Speaker 2: and demand fuel is also picked up around the world.
• 2:54
  Speaker 2: And secondly, probably the global supply of oil has not
• 2:58
  Speaker 2: been taking paced with the certain armed So that's and
• 3:01
  Speaker 2: I must say that's that's a deliberate that's a deliberate
• 3:04
  Speaker 2: thing by the biotech, which is the oil cartels, so
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  Speaker 2: glumberate of a lot of countries that's apply oil. And
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  Speaker 2: so I think you know last year they experienced a
• 3:14
  Speaker 2: huge damaging, expensive out of all over supply when everyone
• 3:18
  Speaker 2: plummeted into the original lockdowns, and you know it's the
• 3:22
  Speaker 2: cartel don't want that to happen again. So they're they're
• 3:24
  Speaker 2: actually managing the manufacturing of oil now and and not
• 3:31
  Speaker 2: probably producing as much as what they could. They don't
• 3:33
  Speaker 2: want another oversupply, right, Yeah, So what I think what
• 3:37
  Speaker 2: that means for us is that I don't think in
• 3:39
  Speaker 2: the immediate future we're going to see any relief. We've
• 3:42
  Speaker 2: been hovering around in Darwin here about the dollars sixty
• 3:45
  Speaker 2: nine for U l P since you know, late October,
• 3:49
  Speaker 2: and I would say that least up toil the new year,
• 3:52
  Speaker 2: we're going to see that that kind of remain at
• 3:55
  Speaker 2: that level some positive news, so you know it's boil
• 4:00
  Speaker 2: or did has dropped about ten percent in the last
• 4:03
  Speaker 2: fifth in the last month, and would hopefully see some
• 4:06
  Speaker 2: of that feed through probably into billion a new year,
• 4:09
  Speaker 2: I think.
• 4:11
  Speaker 1: And you mentioned a little while ago Alice Springs as well,
• 4:15
  Speaker 1: that this most recent report also includes Alice Springs. How
• 4:17
  Speaker 1: are things looking for the likes of Alice Springs When
• 4:20
  Speaker 1: you talk about those transport costs and have they also
• 4:23
  Speaker 1: gone up?
• 4:24
  Speaker 2: They certainly have, and they ranked the third highest in
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  Speaker 2: regards to the overall transport costs out of the seven
• 4:32
  Speaker 2: regional towns that have been measured in this report. So again,
• 4:37
  Speaker 2: similar similar percentage of income fifteen point five percent of
• 4:41
  Speaker 2: the overll income. They're about three hundred and forty one
• 4:43
  Speaker 2: dollars a week for their for their transport cost. But
• 4:48
  Speaker 2: certainly they have around and fuel is a significant problem
• 4:51
  Speaker 2: down there. So it's the cost down there. Less competition
• 4:55
  Speaker 2: than the lights as well, but it's their fuel costs.
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  Speaker 2: And where a dollars sixty nine, they are around heeading
• 5:00
  Speaker 2: towards the dollar eight in.
• 5:01
  Speaker 1: Our in our springs, And as you said, at this
• 5:05
  Speaker 1: point in time there sort of doesn't look like there's
• 5:07
  Speaker 1: going to be a huge change or a huge positive change,
• 5:11
  Speaker 1: I suppose in the near future. But you are hoping,
• 5:13
  Speaker 1: and I guess everybody's hoping that we do see things
• 5:16
  Speaker 1: get a little bit better in the new year.
• 5:19
  Speaker 2: Absolutely, Katie, I think that all price drop, we will
• 5:21
  Speaker 2: see that, but I have the market very volatile at
• 5:25
  Speaker 2: the moment. Who knows that the new strains and the
• 5:27
  Speaker 2: lights what could happen. But you know, we have seen
• 5:29
  Speaker 2: that there all price drop from one hundred and six
• 5:31
  Speaker 2: dollars a barrel down to eighty nine in the last
• 5:34
  Speaker 2: few weeks. So we've hoped to see that flow through
• 5:38
  Speaker 2: the late December early into the new year and are
• 5:41
  Speaker 2: we seeing.
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  Speaker 1: When those prices do actually change at the terminal gate?
• 5:44
  Speaker 1: Are we seeing that price drop at the bowser as
• 5:47
  Speaker 1: well pretty quickly? I know that generally one of those
• 5:49
  Speaker 1: complaints we're hear quite often is that when it goes up,
• 5:52
  Speaker 1: we see it go up at the bowser pretty fast.
• 5:56
  Speaker 2: So we manage in here at AA and C. We're
• 5:59
  Speaker 2: looking at it daily. Fuel pricing and what we are seeing,
• 6:02
  Speaker 2: I mean of retail margins have been very very consistent
• 6:05
  Speaker 2: for a very long time. So it's not the retail margins,
• 6:09
  Speaker 2: it's just it said, with the with the Australian dollar
• 6:12
  Speaker 2: and also the with all pricing is really the major
• 6:15
  Speaker 2: influence here. So we watch also the terminal gate and
• 6:21
  Speaker 2: managing watching that very carefully. So I think, yes it does,
• 6:25
  Speaker 2: but it is there is a flow on effect obviously
• 6:27
  Speaker 2: depending on what supplies and the tanks, et cetera at
• 6:29
  Speaker 2: the time, but we should see that flow on as
• 6:31
  Speaker 2: said earlier in the new year now given the all produce, well.
• 6:34
  Speaker 1: Anthony Hill, the CEO of the A A n T,
• 6:38
  Speaker 1: always appreciate your time. Thank you very much for having
• 6:40
  Speaker 1: a chat with us today.
• 6:42
  Speaker 2: Thanks Katie,