Holly Wainwright

There's nothing happening.

Anyway, to answer your question of why it is getting more expensive in the simplest way that we can, it is because of the war in the Middle East and the fact that even though Australia imports much of its fuel from Asia...

That all originates in the Middle East in some way.

The most simple way to explain it is, so there was an excellent expert on the quickie this morning from the NRMA called Peter Corey, and he basically made the point that if the Middle East sneezes on this issue, then the rest of the world will catch the cold because even though we import a lot of our fuel from either in its raw state or its refined state from, say, Singapore or China or India, that fuel all originates in some way in the Middle East anyway.

Yeah.

So the prices are globally set?

Well, no, they're not globally set.

But the thing is, is this issue isn't just affecting Australia.

This issue is affecting the whole world.

And so you're hearing a lot of discussions about, oh, well, all the tankers that were meant to have come have come.

So we've got plenty of fuel.

Everybody should relax.

And that might be true for now, but the problem is that the supply chain will be disrupted at some point.

Because, for example, some of those countries who the oil comes to us from,

are beginning to cancel or delay orders because they want to hold onto it themselves for their own good reasons, right?

The other issue is that because the Straits of Hormuz is closed, which is the passageway for a lot of the world's oil, not all of it, but a significant portion,

Nothing can get out.

So the things that are coming to us now have already probably left the Middle East before the war started.

So right now it's kind of like, as the government keeps saying, everything's fine.

But the fact that the supply chain will be disrupted has led to an increased demand.