The federal government insists Australia’s fuel supply remains secure, even as shortages deepen across regional communities and farmers warn the situation could disrupt food production and supply chains. One retailer in Armidale has increased its prices over a three dollars a litre, while others have run out.
Treasurer Jim Chalmers on Wednesday rejected claims of a national fuel shortage, saying recent disruptions were the result of panic buying and sudden spikes in demand rather than supply failures.
“We are not experiencing a fuel shortage but rather localised disruption due to significant spikes in demand,” Dr Chalmers said.
“Despite global price volatility, Australia’s fuel supply remains secure.”
When asked directly by Member for New England Barnaby Joyce to meet with independent distributors, including Transwest who has been denied supply by major fuel suppliers, was rejected by the treasurer who claimed he and Energy Minister Chris Bowen were already meeting with industry and the ACCC, and they didn’t need Mr Joyce’s help.
In addition to being blocked from accessing fuel supplies, independent distributors are reporting that the major fuel companies are poaching their local bulk customers by supplying them direct.
“Now we’re finding that because we couldn’t deliver in Queensland at all, the guys that wouldn’t supply us are now delivering direct to our customers,” Sam Clifton from Transwest Fuels said.
“It’s like, what the hell? You won’t give us the fuel when you’re delivering 20,000 litres to one of our customers?”
“It’s an unfair market, they’re using their clout in the market to make unfair advantages,” he said.
Many retailers in the region have begun limiting purchases and rationing their customers, while the Connectic Heresville service station near Armidale Airport has decided to increase their prices more than $1 a litre above competitors, charging 338.9 cents per litre for both unleaded and diesel on Wednesday. The service station is usually the cheapest in town, but ran out of fuel last week and is understood to now be deliberately pricing to make their delivery last.
The next most expensive in Armidale is the Ampol at Girraween which had diesel for $2.61. The Shell opposite Coles was out of Unleaded 91, while the Lowes depot near the viaduct was out of diesel, but most other operators still have some fuel and are keeping prices closer to $2 a litre than $3, as is the case for most outlets in the region.
NSW Nationals Leader Gurmesh Singh said farmers and regional businesses were increasingly concerned they could run out of fuel within days.
“It’s deeply concerning to hear that the government still appears to be downplaying the seriousness of this issue,” Mr Singh said.
“Farmers and regional business owners are understandably worried about price gouging and running out of fuel within the next week, if not days.”
Barwon MP Roy Butler said farmers across western NSW were already struggling to secure diesel.
“Local farmers have told my office they have been unable to place new orders for diesel or that supplies are being rationed,” Mr Butler said.
“They’ve been told refineries are ceasing deliveries to regional areas while they assess incoming supply.”
Mr Butler said the situation had exposed Australia’s limited fuel reserves and heavy reliance on imported fuel.
“We’re just ten days into the conflict with Iran and already local farmers are unable to secure diesel for agricultural operations and machinery,” he said.
“This energy shock has exposed the lack of federal planning to ensure the country has 90 days of fuel available.”
Business NSW New England North West regional director Stephanie Cameron said businesses needed clear information about fuel availability.
“What businesses and communities need right now is transparency about fuel levels and supply constraints,” Ms Cameron said.
“Let people know what is available, where shortages are emerging, and how resupply is being prioritised, especially in regional areas.”
Ms Cameron said fuel insecurity hit small businesses particularly hard.
“When fuel supply becomes insecure or prices spike, small businesses feel it first and hardest because they have the least capacity to absorb sudden shocks,” she said.
“Some of our members in north western NSW have said diesel has completely run dry.”
Got something you want to say about this story? Have your say on our opinion and comment hub, New England Times Engage