According to the RAA\u2019s Mark Borlace, a $5-10 price increase per barrel could bump up prices at the bowser \u201cin the order of up to nine cents\u201d a litre.<\/p>\n
He told FIVEAA Breakfast on Monday:<\/p>\n
\u201cIt depends on how prolonged this event is. If it\u2019s a one-off it shouldn\u2019t have much of an affect, but if it\u2019s the beginning of a war in the region it could have a longer term affect.<\/p>\n
\u201cMost of our fuel comes from Singapore and of the production out of Singapore they draw about 40 per cent of their crude from the Middle East. So it\u2019s not going to have the direct affect on us as you would expect because they can balance that five per cent loss of supply from other producers in Indonesia and Asia.<\/p>\n
\u201cBut world wide if this continues and five per cent gets taken out of the market the laws of supply and demand will kick in and we could see a $4 or $5 per barrel on a normal cost of $60. But that should take awhile to flow through\u2026 most of them are on 30-day contracts.\u201d<\/p>\n<\/blockquote>\n\n