00:01diesel prices have moved into record territory in Britain and the RAC says the question is how
00:09far above two pound a litre could they climb here in the northeast of England that matters
00:14well beyond the forecourt car plants ports construction firms and hauliers all rely on
00:21diesel-powered transport to move vehicles components and goods higher fuel bills mean
00:26higher operating costs and businesses cannot absorb those indefinitely some will feed into
00:33transport contracts delivery charges and eventually the prices paid by consumers so households without
00:39a diesel car can still feel the impacts through shopping and services with the northeast closely
00:46tied to manufacturing and freight sustained record prices risk becoming a wider cost of living pressure
00:53for businesses and consumers in the weeks and months ahead there can be no doubt that the the fact
01:00that the fuel prices are going up is primarily due to the situation um caused by sort of Donald Trump
01:05and Benjamin Netanyahu in Iran um quite clearly once you sort of have a um a conflict such as that
01:12and
01:12the fact that sort of the the Straits of Hormuz where a lot of so they all move through it's
01:16bound to sort
01:16of create a supply side problem now there is um no end in sight so we expect them to go
01:22up we've also got the
01:23added complication that sort of diesel has gone up sort of fairly sort of dramatically in recent times
01:27caused by this of the fact that sort of refining sort of uh processes which of course uh diesel
01:31being another sub-product of oil have been sort of closed down as a result of the conflict and also
01:36allows that uh the fact that sort of Donald Trump has decreed that there should be sort of a ban
01:41to
01:41exports from um America or the United States to the rest of the world so of course this is making
01:46the
01:46sort of the um you know the black stuff or the derivatives of such uh to be sort of uh
01:51quite
01:51a sort of precious commodity do I sort of see any end to this well Trump has promised that um
01:56the end
01:57of the conflict on umting occasion so we can't put much faith in that we've got the midterms going up
02:01maybe of course that might sort of give him cause to sort of to think if the the uh consequence
02:05of
02:05that are sort of he's voted out of the uh uh the two houses where the election has been held
02:09do I see
02:10any sort of upside I think it's important to recognize of course as fuel prices go up we use less
02:14of it so
02:15people sort of become sort of more careful in their use but also of course um in the short to
02:19medium term no but I think in the longer term it will sort of underpin the sort of the transition
02:23to sort of to uh net zero but of course quite clearly the last thing that the government probably
02:28would want is able to go out and buy electric cars because of course we don't have the sort of
02:31capacity and besides of course electricity prices are also going up so that's part of the problem
02:36so all in all it um it demonstrates the sort of the problem that when we're dependent upon sort of
02:40something that comes from oil we have to pay the sort of the price when it becomes in short supply
02:44well there is no firm forecast for where diesel prices will peak but while global supply remains
02:52tight households and businesses could keep paying more through fuel goods and services
