Farmers are complaining they are running out of fuel due to the conflict in the Middle East – and it will directly translate to the cost for families at the supermarket checkout.
Major petrol wholesalers including BP, Ampol, Mobil and Viva are restricting their sales to contracted buyers as the price per barrel for oil surges.
Many Australian farmers rely on ad hoc deliveries rather than long-term contracts, leaving some struggling to secure fuel at predictable prices. Wholesalers such as United Petroleum are also rationing their supply.
Some farmers are claiming the disruptions could severely impact production and transport, driving up prices for consumers.
Many farmers are reporting fuel deliveries are becoming harder to secure, while prices surged, and said the fuel is not only needed for running tractors and harvesters from dawn to dusk, but also to transport the produce from their farms.
The price of diesel has surged in many areas to more than $2.30 a litre, with some reports it had run out at some service stations near the regional Queensland hub of Toowoomba.
Nationals leader David Littleproud said farmers were already struggling to secure forward fuel contracts at agreed prices and obtain supply quotes.
‘Farmers cannot get the fuel they need in regional and rural areas right now, which is placing enormous pressure on the agriculture industry,’ he said.
Nationals leader David Littleproud says ‘every Australian should be concerned’ about farmers running out of fuel as it will translate directly to the supermarket checkout
Diesel has surged to $2.30 a litre in many Aussie regions since the conflict broke out in Iran
‘Every Australian should be alarmed… Farmers across regional Australia are being told their diesel deliveries have stopped. Some can’t lock in supply at all. Their fuel tanks could run dry within days.
‘No diesel. No tractors. No harvest. No food. It’s that simple and that serious. When supply drops, prices surge. Every family in this country will pay the price at the checkout.’
One Queensland farmer Leyton Free said he would run out of petrol by Wednesday, while cattle grazier John Lowe said diesel prices in some regions have jumped about 40c per litre.
In one case cited by Mr Lowe, a producer locked in a delivery of about 27,000 litres at $1.70 a litre, only to be later told the price had jumped above $2.
‘It was a dry summer so a lot of people were deferring their costs for as long as possible, which has made this a bit of a perfect storm,’ the NSW Farmers committee chair said.
‘As we started getting a bit of rain in the farming belt, we got this supply problem at exactly the same time.’
Mr Lowe, who runs a cattle breeding and grazing operation in the NSW Central Tablelands, said the uncertainty had already disrupted his planning.
‘The crops we thought we were going to plant, we may not get to plant,’ he said, adding it would have a flow-on effect for cattle grazing.
Farmers are complaining they could run out of fuel in days needed to get their produce to supermarket shelves
Australia’s Energy Minister Chris Bowen said Australia remained well above minimum fuel stockholding levels
‘We’ll have to have a pretty big heart-to-heart with our bankers.’
Fuel retailers say the disruption has been driven partly by panic buying and efforts among wholesalers to prioritise existing contracts.
‘Unfortunately, there has been some panic buying of diesel which has depleted stock in some areas; however, these sites have been quickly replenished,’ Australian Convenience and Petroleum Marketers Association chief executive Rowan Lee said.
The federal government insists Australia’s fuel security remains strong.
Energy Minister Chris Bowen said the country remained above its minimum fuel stockholding levels and warned companies against exploiting the crisis.
‘Australia’s fuel pricing follows global markets, but the government has been clear – this is an international crisis, not a commercial opportunity,’ he said.
He cautioned industry to ensure farmers and smaller businesses could access the fuel they need.
Retailers were yet to report shortages or supply-chain issues, an Australian Retail Council spokesperson said, with any impacts likely to appear over the longer-term.
