Diesel is back down below petrol and there\u2019s no sign of a fuel shortage \u2013 at least for now.<\/p>\n
So have we dodged a bullet? <\/p>\n
In The Economy of Everything<\/a> podcast this week Tamsyn Parker and Liam Dann take a look at why fuel prices haven\u2019t gone through the roof and whether the worst is still to come.<\/p>\n \u201cOne argument is that they were just wrong. But it does seem a few things have happened that have meant those apocalyptic scenarios haven\u2019t played out,\u201d Dann says.<\/p>\n \u201cTo my way of thinking, it is a bit of vindication of markets. Markets are quite good at sorting these things out.\u201d<\/p>\n Co-host Parker says: \u201cI feel like in a crisis, any kind of crisis \u2013 we\u2019ve been through a few, Covid, the Global Financial Crisis \u2013 things adjust. People adjust. <\/p>\n \u201cI mean, that is one thing about humans, we\u2019re quite adaptable.\u201d<\/p>\n While the strait remains largely shut, about 50 ships a week are getting through.<\/p>\n Countries are also using alternative routes to get oil and gas out through the Red Sea.<\/p>\n That has helped with about 5% of what would have otherwise gone through the strait.<\/p>\n Countries have also been tapping into large oil reserves, but this week the International Energy Agency warned those reserves are starting to dwindle. <\/p>\n Listen to the full episode<\/a> to hear more about:<\/p>\n Higher costs still to hit food prices Why the Reserve Bank will get the Official Cash Rate call wrongThe service sector\u2019s 29 months of shrinking employment<\/a>And why the public sector cuts are more about saving money than AI <\/p>\n