00:04Filling the tractor is getting more expensive, through a conflict pushing up the cost of
00:10liquid fuels, particularly the diesel powering our industrial, transport and agricultural
00:16sectors.
00:17So it's costing us on the bottom line about 40% of our profitability.
00:23What Adrian Rawls and other farmers are paying for diesel goes far beyond what's needed to
00:28be put into the tank.
00:30We've had increased costs on pesticides, herbicides, we've also had costs on freight.
00:38The price of diesel has soared since the conflict began.
00:42That will accelerate because the base product, crude oil, is back above US $100 a barrel.
00:50In addition, a global reduction in the capacity to refine diesel means the gap between the
00:56price of crude oil and what diesel costs is increasing, and that's pushing inflation.
01:04Before the conflict, transport companies like this one would adjust fuel surcharges once
01:09a month.
01:10Currently it's once every week.
01:12That's because of the volatility in fuel pricing, so it means that the increases in fuel costs
01:18are being passed through the consumer much more quickly in the supply chain.
01:21diesel.
01:22And that isn't going to slow down.
01:24So we've moved from a market that was getting tighter to one that is now, wow, this is a
01:30big concern.
01:30Diesel powers the movement of just about everything we buy, and with decreased supply from the Middle
01:36East and the reduced capacity of refineries to create it, prices are only going in one direction.
01:42Have a good one.
01:43.
01:43Are we today?
01:44Thank you very much.
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