55 Fuel Tankers Racing to Australia as Diesel Shortages Persist

SYDNEY: More than 55 tankers carrying crude oil and refined fuels are headed for Australian import terminals through April, as suppliers race to prevent domestic shortages stemming from disruptions in the Middle East.

Energy Minister Chris Bowen confirmed Saturday that shipments had surged. The increase represents about 10 to 15 extra deliveries beyond normal volumes.

"We have seen more supplies on the way from other parts of the world; from the United States, Mexico and other places," Bowen told reporters in Sydney.

Australia's fuel reserves held steady as of Saturday morning. The nation has 39 days of petrol, 29 days of diesel, and 30 days of jet fuel.

"The fact these figures are effectively flat means fuel is going out the door to service stations and farmers, fuel is coming in the door at Australia's import terminals, and our refineries are working full pelt," Bowen said.

NSW Bears Brunt of Diesel Shortages

Service stations nationwide reported improvements Saturday. 312 outlets across Australia were without diesel, down from 360 on Friday.

NSW continues to suffer the most severe shortages. 150 stations lack diesel, down from 182 on Friday. Thirty-six stations in the state are completely out of fuel, down from 48.

Other states reported lower figures. Victoria has 51 stations without diesel, Queensland 49, South Australia 13, Tasmania eight, the Northern Territory five, and the ACT six.

NSW's higher shortage rate reflects seasonal demand.

"That's mainly due to sowing and seeding time, and the companies are rightly, in my view, concentrating on getting that fuel to farmers," Bowen said.

Demand Surges as Consumers Respond to Shortage Fears

Viva Energy, which supplies 30 per cent of Australia's fuel from its Geelong refinery and import terminals, said demand was up 30 per cent from this time last year.

Chief executive Scott Wyatt said the company's trading team had secured additional cargoes from the US and South America.

"We have got a good flow of fuel heading into May and a good flow of crude oil heading into June for our refinery at Geelong," Wyatt said.

Ampol has also widened its search for crude and refined fuels from suppliers in the US and Europe.

Bowen urged consumers not to panic-buy and to fill up in cities rather than regional areas during the Easter long weekend.

Farmers Call on Supermarkets to Absorb Costs

The National Farmers' Federation's Horticulture Council has written to Australia's major supermarket chains urging them to respond "promptly and constructively" to requests from fresh produce suppliers for price increases.

The council said increased fuel prices could not be absorbed by suppliers "without serious consequences."

"Suppliers are being forced into continual renegotiation of freight and logistics arrangements simply to maintain supply," the letter said.

Coles said in a statement that it would work with farmers to manage upward pressure on agricultural costs.

The retailer said its first priority would be "to mitigate any change from flowing through to the shelf."

Woolworths said both retailers and suppliers had a responsibility to manage growing cost pressures "while also trying to reduce the full impact on shoppers."

"We need to strike the right balance of supporting the viability of our suppliers and transport partners while advocating for our mutual customers to help buffer the impact on them at the check-out," a Woolworths spokesperson said.

South Australian Dairyfarmers' Association president Robert Brokenshire said the confluence of drought, spiking fuel prices, and fertiliser shortages was "the most diabolical situation that we've seen in 40 to 60 years."

"This is already worse than what we experienced through COVID, and we fear that inflation is going to be more rampant than [it was] in COVID," Brokenshire said.

Asia Begins Diversifying Supply as Middle East Conflict Continues

Bowen said Asian refineries that typically supply 80 per cent of Australia's liquid fuel needs were beginning to diversify their crude oil sources away from the Middle East.

"That is something that Australians can take some confidence in," Bowen said.

Ongoing disruptions in the Strait of Hormuz have choked critical crude supplies to large Asian refineries since late March. US President Donald Trump has not provided a clear timeline for resolution of the conflict.

Lurion De Mello, senior lecturer at Macquarie University's Transforming Energy Markets Research Centre, said about 10 to 15 extra shipments would reach Australia in April beyond ordinary volumes.

"There has been an extraordinary uptick in numbers," De Mello said. "Usually, you would not get so many tankers."

De Mello said a concern remained that not enough crude oil was reaching Asian refineries in coming weeks, which could crimp exports from the region in May.

"That's when supply could start becoming affected," De Mello said.

Food charity Foodbank said it recorded a 44 per cent jump between February and March in the number of Australians saying they found it harder to put food on the table.

Chief executive Kylea Tink said people were finding it difficult to afford petrol to drive to food relief centres.

"More people are relying on public transport or carpooling, which limits how much food they can take home," Tink said.