00:00This transport company makes 4,000 deliveries a day to retailers and cafes.
00:08The owner says when the price of petrol comes down, it's good news for everyone.
00:13When the fuel comes down we pass that on, but things like rates, taxes, you know, they
00:19for us, they've gone up in the past year.
00:22The price of Brent crude oil fell below 70 US dollars a barrel this month, its lowest
00:27level in almost three years, and now it's hovering around 73 US dollars.
00:33That's pushed down the average petrol price at the pump to $1.78, and the average diesel
00:39price is now about $1.82.
00:42The oil price is shrinking mainly due to lower demand from China.
00:47Analysts expect the price to fall further, putting downward pressure on fuel prices.
00:52We're talking somewhere in the realm of $1.65 to $1.70.
00:56But there is a scenario where petrol prices could rise again.
01:00If tensions between Iran and Israel escalate, and there's a regional war, that would hurt
01:05oil supply.
01:07The big uncertainty is what oil producing nations in the Middle East decide to do.
01:12Economists say while falling prices are good for consumers, it won't lower underlying
01:17inflation as far as the Reserve Bank wants it to.
01:21It's going to help with the margin, but not by enough I don't think to have the RBA bring
01:25forward rate cuts into this year rather than next year.
01:28Back at the warehouse, John DeLosa is hoping those rate cuts come sooner.
01:33It would be a lot more helpful because people have more money, and the more money they have
01:38they can actually spend more on buying that extra steak or the extra biscuit or the extra
01:45cake.
01:46Extra spending for an economy slowing down in speed.
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