Traineeinvestor:The exchange rate impact will be no difference...

Traineeinvestor:

The exchange rate impact will be no difference to the situation now, because of import parity pricing of petroleum products.

In essence, just like for variations in the price for crude oil, the customer currently wears the impact of exchange rate fluctuations at the bowser.

Which is one of the reasons we see pump prices fluctuate: it's not just the crude oil price that does it, but also the exchange rate at which crude is imported.

(Actually, it's affected by the refinery margin, too...which is why sometimes when the oil price even falls, pump prices actually go up...its because the refiner margin might have gone down and/or the A$ might have fallen.)

Of course, what might happen is that, should the A$ fall dramatically and thereby push up the import parity price of fuels, consumers might reduce their consumption of petrol and diesel, where they can, and volumes might be affected, but the impact would be marginal, as petrol is really a non-discretionary purchase for households and companies.

But the impact on the MARGIN which CTX is able to charge will remain largely unchanged.

Which is kind of the main reason I like the company as an investment today: I think its future cash flows will be highly resilient once the company has limited exposure to volatile international refining margins.

And I don't believe the market has figured this out yet.

Cam