Fuel crisis Australia: Experts warn Iran war-induced fuel crisis will cause hip-pocket pain as servos run dry

Industry leaders have warned the Iran war-induced fuel crisis will have a ripple effect across key sectors and cause consumers hip pocket pain on everything from food and flights to online shopping and construction.

Almost 550 service stations nationwide are experiencing a shortage of at least one type of fuel — with one in eight in New South Wales hit by the distribution pressures.

Farmers will be among the first hit ahead of the looming seeding period, with many considering drastically reducing their cropping input this year as they are already rationing the fuel they have stored on-farm.

While mining operations could consider altering fly-in, fly-out worker rosters to make them stay on site longer to reduce the amount of jet fuel used by airlines flying them to remote sites.

And for regular passengers, Qantas and Virgin have already increased the cost of airfares, while Jetstar and Air New Zealand have axed a number of services across the Tasman.

In an update provided in Parliament on Tuesday, Energy Minister Chris Bowen revealed of 2417 fuel stations in NSW, 289 stations are without at least one type of fuel and 164 are without diesel.

While in Victoria, 162 stations were without one or more grades of fuel out of 1627 stations. Queensland was less impacted with 44 stations without diesel and 35 without regular unleaded out of 1800 stations.

In South Australia 46 stations were without one or more grades of fuel out of 700 stations and in Western Australia only six stations reported having no fuel out of 771 stations.

The smaller state and territories were less impacted, with six Tasmanian stations out of 250 out of unleaded while one had no diesel, while the Northern Territory and Australian Capital Territory had no shortages from demand.

It comes as the Opposition will look to create a register of fuel shortages, insisting that that the government hadn’t been transparent about the extent of the issue.

Shadow Energy Minister Dan Tehan said he was deeply concerned by reports Australian farmers were reconsidering sowing their crops which could have a significant impact on the national food supply.

National Farmers Federation President Hamish McIntyre said while there wasn’t a mandated fuel rationing in place, widespread self-imposed restrictions had begun across the sector to safeguard supplies.

“We’re rationing it ourselves on our own and you know putting it to where we most need it,” he said.

“Over the last three weeks at my own properties and stations, we’ve been taking less fuel than we actually require.

“We’re picking cotton at the moment. So we’ve got to keep that machinery rolling and we’re having to shut down other machines that are doing other work.”

He also warned that if the war was prolonged and the fuel issue worsened that it would become “an animal welfare issue” for farms with livestock and a ”social issue” for regional communities.

“So, we need the government to do everything they can. We’ve got to increase the supply into Australia,” he said.

Pastoralists and Graziers Association of WA President Tony Seabrook echoed his sentiment and warned broad acre cropping farms across the state were reconsidering their programs.

He said with farmers already struggling with tough margins, on-farm fuel supply issues and surge charges from contractors would prompt many to rethink their plans.

Mr Bowen announced on Tuesday that it will impose temporary adjustments to Australia’s diesel standards for the next six months, to increase supply and broaden import market options.

“This six-month adjustment will lower what’s known as the flashpoint for diesel, from 61.5C, to 60.5C, increasing diesel supply options from refiners and international sources,” Mr Bowen said.

It marks the latest in a suite of measures the government has taken to alleviate the pressures since the conflict started on February 28.

It has included releasing up to 762 million litres of fuel from Australia’s strategic domestic reserves, relaxing Australian fuel standards to allow higher sulfur levels, working with trading partners and appointing new fuel tsar Anthea Harris.

Ms Harris held her first meeting as national fuel coordinator on Monday with representatives appointed by each State and Territory, as part of a push to coordinate Australia’s response to the crisis.

Mr Bowen said he had also convened a meeting with State and Territory energy ministers and would continue to meet regularly if the disruptions prompted by the Iran war continue.

Treasurer Jim Chalmers is also expected to introduce changes to the penalties the consumer watchdog can hand out, to give the ACCC stronger powers to deal with fuel retailer price gouging.

However, the Greens have warned that the changes were mostly symbolic in tackling price gouging as their powers are rarely used and instead have suggested regulations similar to the supermarket price gouging measures due to take effect on July 1.

Association of Mining and Exploration Companies boss Warren Peace said while the sector was currently operating without major disruptions, an economic cliff loomed in the coming months if a resolution is not found.

He said while it wasn’t currently being considered, FIFO workers could be asked to return to COVID-like swings to keep them on sites longer to conserve jet fuel.