Call for fuel quarantine for farmers

Some of the country’s fuel reserves should be set aside for agriculture to ensure there are no food shortages, according to Tasmania’s peak farming body.

TasFarmers has today warned the Federal Government that it must immediately quarantine fuel for farmers or risk disrupting national food production as supply uncertainty deepens across Australia. 

The peak body says weeks of industry warnings have not translated into a clear plan, only “talk-fests”, with reports of fuel shortages and extreme price variations already emerging in Tasmania and Australia-wide.

Diesel prices are just shy of $3 per litre today, adding thousands of dollars onto the cost of production and freight of fresh food, however the bigger worry for growers is the availability, despite Prime Minister Anthony Albanese stating this week that Australia's overall fuel supply is "secure" and "stable," insisting that there is no physical shortage of fuel in the country. 

TasFarmers president Ian Sauer said farmers are entering a critical period in the crisis, with no certainty over diesel supply.

“We’ve been clear for weeks, no fuel will mean no food,” Mr Sauer said.

“Farmers cannot harvest or produce food if diesel isn’t guaranteed; production stops. It’s that simple.”

TasFarmers is calling on the Commonwealth to activate the Liquid Fuel Emergency Act 1984 to prioritise fuel for essential services, including agriculture.

Mr Sauer said in the absence of a national plan, the government is fuelling panic and distorting supply.

“When there’s no plan, uncertainty takes over. That’s what drives panic buying and makes shortages worse,” Mr Sauer said.

"Government says it is listening. But across New South Wales, more than 40 service stations have reportedly run dry or missed deliveries. The same pressures are now being felt in Tasmania, particularly in regional areas.

“We’re hearing a lot of talk and roundtables, but we’re not seeing decisions. Farmers need certainty now, not reassurances," said Mr Suaer. 

TasFarmers said rural and regional areas are already bearing the brunt of supply strain, with service stations running dry in NSW and large price gaps between locations in Tasmania.

It noted that in parts of Tasmania, diesel prices vary by more than a dollar per litre between nearby towns, saying it’s a signal of market stress and potential supply imbalance.

Mr Sauer said the consequences extend well beyond the farm gate.

“If fuel runs out, you don’t get crops in the ground. You can’t irrigate. You can’t move livestock. You can’t harvest,” he said.

“That flows straight through to food availability and prices for every Australian.”

TasFarmers also warned of a fertiliser squeeze directly linked to oil supply, with urea supplies largely pre-booked and prices having doubled after Tasmania received its last foreseeable delivery into the state.

The organisation has written to the Australian Competition and Consumer Commission, raising concerns about potential price gouging in Tasmania.

“This isn’t just a fuel issue; it’s a supply chain issue,” Mr Sauer said.

“If inputs like fertiliser become unaffordable or unavailable, it compounds the risk to production.”

TasFarmers is urging the Federal Government to:

•    Activate emergency fuel allocation powers
•    Guarantee diesel supply for agriculture, freight and transport
•    Work directly with industry to quantify demand and prioritise distribution
•    Develop a long-term fuel security strategy to prevent future crises

Mr Sauer said the window to act is closing.

“You can’t wait until there’s two weeks of fuel left and expect to manage this properly,” he said.

“Government needs to recognise the scale of the risk, own it, and act now."

TasFarmers said it will continue to press for urgent action and engage with national industry bodies to secure fuel access for producers.