Prime Minister Anthony Albanese has called a second national cabinet meeting to discuss new emergency measures to tackle the ongoing fuel crisis.
Public transport discounts, WFH and carpooling are among the proposed measures set to be discussed by state and territory premiers next Monday.
Hospitality operators will consider imposing a five per cent surcharge on customers as transport and delivery costs soar during the ongoing fuel crisis.
The Australian Restaurant and Cafe Association has urged businesses to introduce a temporary surcharge on all meals, including takeaways.
Almost 200 petrol stations across NSW have run out of diesel, while at least 32 reported not having any fuel at all, Energy Minister Chris Bowen told parliament on Wednesday.
In Victoria, 134 are without one or more grades.
Follow Daily Mail’s live updates on Australia’s fuel crisis.
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Urgent warning issued to Australians about food supplies: ‘This event is going to make Covid look like a tea party’
Australians could soon be paying significantly more for milk and face wider food supply fears if global shipping disruptions are not resolved within weeks, the head of one of the country’s biggest dairy cooperatives has warned.
Norco chief executive Michael Hampson said the economic fallout from the escalating crisis could eclipse the pandemic if key energy and trade routes remain blocked in the Middle East due to the ongoing war.
The best-case timeline pointed to six-12 months of food supply disruptions, linked to the reopening of the Strait of Hormuz and stabilising petrochemical supply routes.
‘If it isn’t resolved promptly, as in the next week or two, the fallout for this event is going to make Covid look like a tea party,’ Hampson told The Guardian.
‘We won’t be worried about running out of toilet paper – we’ll be worried about not having food.’
Hampson warned Australians should expect milk prices to rise, saying increases of 30 to 50 cents a litre ‘wouldn’t be unreasonable’ if supply chain pressures continue to build.
However, he stressed that outright milk shortages were unlikely at this stage.
He said the dairy industry faces growing risks from disruptions to global petrochemical supply, with milk packaging heavily dependent on oil-based resins that could become impossible to source if logistics networks do not stabilise.
‘Then it doesn’t matter how much it costs – because we won’t have anything to put the milk in,’ he said.
The warning comes as fuel costs surge across the sector, with Hampson revealing Norco’s milk processing facilities have already been hit with an extra $1 million a month in fuel bills since the conflict began.
It was no longer a question of if, but when, higher costs will flow through to consumers, supply chain management and logistics expert Elizabeth Jackson said.
‘Every kilojoule of food that comes from an Australian farm is moved by a diesel-powered vehicle,” Dr Jackson said.
‘Even the most basic of foods – fresh fruit and vegetables that don’t go through any sort of processing – right through to the most processed exported foods, are dependent upon transport systems.
‘They are also dependent upon diesel for their manufacture in terms of mechanisation that goes into food production, like tractors.’
Price rises are likely to begin with fresh produce because of its constant need for transport.
Increases were possible within two to three weeks, with a “slow burn” most likely rather than one sudden spike.
‘The fresher the produce, the quicker we’re going to see the prices increase,’ Dr Jackson said.
Fuel crisis set to change Australia’s transport fleet forever
Demand for second-hand electric vehicles is rising with the price of petrol, attracting more than double the number of enquiries since the fuel crisis began.
But automotive experts say the record interest also extends to new vehicles and could cause delays as motorists buy electric cars still en route to Australia.
Pickles released details of the trend on Wednesday, revealing searches for electric vehicles on its site had risen by 111 per cent in the three weeks to March 21.
The growth follows widespread fuel shortages, and price rises that have seen some regional service stations charge more than $4 a litre for diesel.
MORE: Chris Bowen Suggests WFH While Denying National Fuel Crisis
New fuel laws in Tasmania
Tasmania is the latest state to introduce emergency fuel laws, amid soaring petrol prices and supply concerns.
New laws to improve transparency, strengthen compliance, and enhance Tasmania’s ability to act during fuel disruptions were urgently passed in parliament on Thursday.
‘It enforces clearer rules for fuel companies to report on supply levels and introduces penalties should they fail to do so,’ Premier Jeremy Rockcliff said.
‘Motorists continue to face sharp fuel price increases and some petrol stations have reported petrol and diesel shortages.
‘It is unclear how long these challenges will continue but we must continue to be prepared for ongoing high prices and challenges with supply.’
He assured that Tasmania’s fuel supply was secure with sufficient stock and more coming.
‘There is no need for stockpiling, which only increases pressure on the system,’ Rockcliff added.
‘We have written to the ACCC requesting close monitoring of the fuel market to prevent price gouging or anti competitive behaviour.’
Some service stations have reported fuel shortages as households and businesses feel the pinch of higher prices.
Tourism operators report cancellations from both international and interstate visitors due to concerns over rising fuel costs and supply reliability.
‘Rising fuel costs are affecting everything from farm machinery to freight,’ Rockcliff said.
‘Industry feedback presented at our roundtable confirms fuel volatility is placing significant additional strain on primary producers.
‘It is affecting communities everywhere – from paddock to plate.
‘These costs ultimately reach consumers, affecting the price of goods across the state.’
Soaring fuel prices likened to three interest rate hikes
Skyrocketing fuel prices is the equivalent of three interest rate rises, according to economist Chris Richardson.
Diesel prices have surged past $3 a litre across the nation as hundreds of service stations run out of fuel stock.
‘Inflation in Australia today, it’s probably 5 per cent, possibly more,’ Mr Richardson told Nine News.
‘That big increase in petrol prices is the equivalent by itself of something like three rate hikes.’
The ongoing fuel crisis has sparked speculation that the Reserve Bank of Australia could lift interest rates for a third consecutive time at its next meeting in May.
‘Effectively, this is the fifth big economic shock in less than two decades, and each one of them warrants a slightly different response, whether it’s from government or whether it’s the way that the Reserve Bank comes at these considerations independently,’ Treasurer Jim Chalmers said.
‘No doubt they will do that. The market will have a view about what the Reserve Bank should do in its next meeting and in subsequent meetings.
Obviously, what we’re seeing with petrol prices, particularly for those Australians who can’t substitute out of petrol or diesel, obviously that has a dampening effect on the economy as well.’
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What you will pay for petrol in your capital city today
The current average unleaded fuel price in Sydney is 251.1 cents per litre and 311.3 cents for diesel.
Melbourne: 251.7 cents for unleaded and 305 cents for diesel.
Canberra: 251.6 for unleaded and 308 cents for diesel.
Brisbane: 251.7 cents for unleaded and 309.4 cents for diesel.
Perth: 258.4 cents for unleaded and 308 cents for diesel.
Adelaide: 258.4 cents for unleaded and 308.3 cents for diesel.
Hobart: 258.3 cents for unleaded and 311 cents for diesel.
Darwin: 260.4 cents for unleaded and 308.7 for diesel
Barnaby’s plea to Albo on fuel rationing: ‘Be brave’
One Nation MP Barnaby Joyce has renewed calls for the Albanese government to introduce imminent fuel rationing before it is too late.
The regional NSW-based MP for New England told reporters outside parliament on Thursday that farmers were battling to conserve fuel consumption as prices rocket and petrol stations run dry.
‘You can’t see it, maybe in Sydney. You can’t see it, maybe in Melbourne or Canberra, but we can see it out in the country,’ Joyce said.
“This is going to ripple through. It’s going to start with a few sort of peculiarities. Isn’t that interesting? I don’t seem to have any eggs today. And then it’s going to build up and up and up and up.
‘But by the time it arrives, it’s too late.
‘He should be brave enough to say to the Australian people, look, you’re not going to like this, but you’re going to appreciate it. A plan is better than panic, and panic is where we’re going.’
It’s understood that the idea of rationing fuel supplies won’t be on the table at next Monday’s national cabinet meeting, with Albanese previously suggesting that it was a matter for the states.
‘The states and territories can deliver fuel where it’s needed most, and so the Commonwealth can concentrate on supply,’ he said.
The drastic act of desperate truckies battling for survival during fuel crisis
An Aussie truck driver has admitted dealing drugs to put diesel in his tank amid the nation’s fuel crisis, as others warn crippling supply chain chaos is just weeks away.
At Eastern Creek Truck Stop, one of Sydney’s busiest freight stops, drivers told the Daily Mail the fuel squeeze is no longer a looming threat, but a rapidly unfolding emergency, putting supermarket supplies and vital deliveries like medications at risk.
One driver said he was down to his last drops of fuel with no money to fill up – and said he had no choice but to sell drugs just to keep his truck moving.
But the truckie – who asked to remain anonymous – said he’s not the only driver now selling drugs to make ends meet.
Six things about to get far more expensive in Australia
Australians have been warned to brace for ‘Armageddon’ at the supermarkets, with prices set to soar and shelves to be stripped bare as soon as mid-April.
The nation’s escalating fuel crisis is threatening to choke supply chains and disrupt deliveries nationwide as the Middle East crisis drags on.
Transport operators have warned the situation is deteriorating rapidly, with some revealing fuel bills have skyrocketed by as much as 70 per cent.
Daily Mail senior reporter Stephen Gibbs outlines the price hikes in the video below.
Albo calls urgent cabinet meeting to discuss fuel crisis measures
Prime Minister Anthony Albanese has called a second national cabinet meeting to discuss new emergency measures to tackle the ongoing fuel crisis.
Public transport discounts, voluntary WFH for white-collar workers and carpooling are among the proposed measures set to be discussed by state and territory premiers next Monday.
Albanese said it was ‘important we have national consistency’ when addressing the fuel crisis.
‘I intend convening again the national cabinet next week to further co-ordinate the activity that we are taking,’ he said.
Government sources told Nine Newspapers that there was a growing sense to bring in potential measures to reduce fuel demand, adding it was untenable for the states to come up with their own plans as they did during the 2020-21 Covid pandemic.
It’s understood the idea of rationing fuel supplies will not be on the table, with Albanese previously suggesting that it was a matter for the states.
Queensland Premier David Crisafulli has called on the federal government to be more transparent about where the fuel blockages are ahead of next week’s cabinet meeting.
‘We need information to flow and fuel to fill tanks in every part of our state,’ the Premier told parliament on Wednesday.
NSW counterpart Chris Minns agreed that a nationally consistent approach was required.
Australian Industry Group chief executive Innes Willox called on the federal government to ‘lay every option on the table’.
‘These options should include a possible cut to fuel excise, consideration of structured fuel rationing, and discounted public transport fares,’ he said.
‘Employers are already reporting an increase in absenteeism among workers … in sectors such as construction, manufacturing, retail, and care.’
It comes after South Korea unveiled drastic measures by encouraging people to slash shower times, charge phones and electric vehicles during the day and only use vacuum cleaners and washing machines on weekends.
Opposition leader Angus Taylor called on the Albanese government to focus on directing fuel stocks to sold-out service stations.
‘Pick up the phone, speak to the companies, tell them to move the fuel to where the servos are sold out,’ he told the Today show.
Labor has long argued complex petrol and diesel supply chains mean it will take time for extra fuel from the nation’s emergency reserves to flow to where it’s needed.
But opposition defence spokesman James Paterson said that was a cop-out.
‘I don’t think Australians will accept that, and nor should they,’ Senator Paterson said.
He referred to the Ad Blue crisis earlier this decade when Chinese exports clamps triggered a severe shortage of urea, a key ingredient for diesel exhaust fluid.
‘We’ve been through similar crises like this before,’ Senator Paterson said.
Grocery hikes loom as fuel crisis hits supply chains
Shoppers are being warned to brace for inevitable price hikes with supply chains facing major oil disruptions as the conflict in Iran drags on.
It was no longer a question of if, but when, higher costs will flow through to consumers, supply chain management and logistics expert Elizabeth Jackson said.
‘Every kilojoule of food that comes from an Australian farm is moved by a diesel-powered vehicle,’ Dr Jackson told AAP.
‘Even the most basic of foods – fresh fruit and vegetables that don’t go through any sort of processing – right through to the most processed exported foods, are dependent upon transport systems.
‘They are also dependent upon diesel for their manufacture in terms of mechanisation that goes into food production, like tractors.’
Price rises are likely to begin with fresh produce because of its short supply chains and constant need for transport.
Increases were possible within two to three weeks with a ‘slow burn’ most likely rather than one sudden spike.
‘The fresher the produce, the quicker we’re going to see the prices increase,’ Dr Jackson said.
Hospitality operators consider five per cent fuel levy
Hospitality operators will consider imposing a a five per cent surcharge on customers as transport and delivery costs soar during the ongoing fuel crisis.
The Australian Restaurant and Cafe Association has urged businesses to introduce a temporary surcharge on all meals, including takeaways.
The proposed levy would see an extra $5 added to the bill for every $100 spent.
Australia’s fuel shortage is worsening with 500 service stations across Australia now out of one form of fuel.
‘Fuel touches everything in hospitality – every delivery, every supplier, every ingredient and every collection truck that pulls up behind a venue,’ ARCA chief executive Wes Lambert told the Herald Sun.
‘This is happening rapidly as petrol stations around Victoria, NSW begin to run out of diesel … what we’re hearing from restaurants and cafes and some pubs around the country is they are now being hit with a fuel surcharge
‘If government won’t stabilise costs, businesses must be allowed to survive them.’
Mr Lambert stressed that the proposed levy would only be temporary and warned that hospitality operators would otherwise shut down without ‘practical relief.’
Celebrity chef Shane Delia is among the industry leaders who backed the move.
‘The fact of the matter is that as an industry we absorb the bottom of the food chain all the time and we find it really hard to pass on anything,’ he said.
Delia conceded that the proposal will only work unless the industry as a whole joined forces an came on board.
