gasoline tanks

Key members of the grain industry have expressed concerns about Australia’s fuel reserve levels. Chairmen of both Grain Producers and Grain Growers Australia are urging the government to commence an inquiry into fuel reserves, before potential problems arise. The calls follow the recent drone attacks in key Saudi Arabian oil refineries, which led to world crude oil prices increasing by up to 20 per cent. Australia sources approximately half of its fuel needs from the Middle East, so any tensions are cause for increased concerns about Australia’s fuel security. To comply with International Energy Agency regulations, Australia needs to store 90 days worth of reserves. However, it is reported that Australia is holding less than a third of the required level. As farmers enter the busy haymaking and grain harvesting season and the peak fuel usage period approaches, stakeholders are urging the government to discuss the national buffer of supplies on hand. Six years ago there was a severe diesel shortage, which forced some farmers to stop their trucks running in order to have enough fuel to harvest their crop. In August this year the Federal Government approached the US about potentially accessing the US emergency fuel reserves. Fuel is an essential resource and the agricultural industry would be severely impacted by reduced availability.

Related News

  • May 30, 2024


    Heads Up – Amendments to International Tax Treaties

  • Mar 12, 2024


    New Legislation Targets Wage Theft: Key Changes and Implications for Employers