NSW Farmers Fuel Crisis: The Price of Redistribution

Farmers across regional New South Wales are grappling with a severe fuel shortage, compounding the effects of a punishing drought and leaving vital agricultural operations in jeopardy. The situation has been described as a “triple whammy,” impacting everything from livestock welfare to children’s education.

Scott Worthington, a farmer from Condobolin in western NSW, is one of many experiencing the brunt of this crisis. His farm is already suffering from a lack of water and pastures that have turned to dust. The recent fuel scarcity has brought his operations to a standstill.

“It brought us to a stop,” Mr. Worthington stated. He explained that while he can source feed and water, the lack of fuel prevents him from delivering these essential supplies to his livestock. “The animals need to be fed, they need to be watered, otherwise we’ll have an animal welfare situation on our hands,” he warned.

Mr. Worthington had placed an order for 40,000 litres of diesel prior to the escalation of conflict in the Middle East, but this delivery has yet to arrive. He has been forced to obtain limited supplies from the nearest town, located 60 kilometres away. With his dams dry and pastures depleted, Mr. Worthington requires thousands of litres of diesel weekly to maintain his farm’s operations. This includes not only on-farm machinery but also the daily 20-kilometre round trip to collect water for his 3,000 sheep and 600 cattle.

“That’s a bit of a triple whammy … it pretty well snookers us,” he lamented. His fuel supplier indicated a delivery timeframe of two to three weeks, citing a backlog of approximately 170 orders.

A Crucial Sowing Season Under Threat

The fuel crisis is not isolated to Mr. Worthington. Andrew Curr, a cropping farmer from Trundle, recounted his own struggle to secure a fuel delivery just before his crucial winter sowing season this month. It took him two weeks and numerous phone calls to finally obtain the necessary fuel, as his initial order never materialised.

“So it was a fairly worrying period because we were coming up to our major winter sowing program, which we need a lot of fuel for, because everything runs on diesel,” Mr. Curr explained. He stressed that the ramifications of these supply disruptions will inevitably reach consumers. “The price of food will go up … so it’s going to have a big impact at the supermarket.”

Beyond the Farm Gate: Impact on Community Services

The fuel shortage has also had a significant impact on essential community services. Mr. Curr, who also drives the local school bus, was forced to suspend his service for two days recently, leaving students on his route unable to get to school.

“When it affects the kids, that’s when it really hits home, and you go, ‘Hang on, this is affecting their education,'” he said, highlighting the stark contrast between regional and urban areas. “In the cities, they’ve got other options, you’ve got public transport … out here you haven’t got an option.”

Regulatory Scrutiny and Supplier Responses

In response to growing concerns, the Australian Competition and Consumer Commission (ACCC) has launched an investigation into diesel supply conduct in regional and rural Australia. The ACCC has received reports regarding the availability of diesel to independent wholesalers and distributors serving these areas.

Regional fuel suppliers, South West Fuel and Oilsplus, have acknowledged a surge in demand across the regions in early March. They reported receiving more orders in the first few days of the month than they typically see over an entire month. A spokesperson for the suppliers stated, “This combination has placed extreme and unprecedented pressure on our supply chain — we have never experienced anything like this before.” While they have managed to secure sufficient supply to meet current customer requirements, the significant surge in demand has resulted in extended delivery delays as they work through a large backlog of orders.

Calls for Government Support and Fair Distribution

The NSW Member for Cootamundra, Steph Cooke, has called on the state government to ensure equitable support for regional communities affected by the fuel crisis. She emphasised that reliable access to fuel is fundamental for regional businesses, economies, education, and healthcare.

“You can’t just plant a crop at any time of the year … if we miss this period, there will not be a harvest at the end of the year,” Ms. Cooke stated, underscoring the critical timing of agricultural activities.

NSW Premier Chris Minns has indicated that no scheduled petrol arrivals into Australia have been cancelled due to the crisis thus far. He assured that the state government would remain vigilant against price gouging within the supply chain.

“Buy petrol when you need it … but don’t over consume it because it will come… at the expense of a neighbour or another member of the community who might need access to that, particularly if you’re in a regional community,” Mr. Minns advised.

The ongoing fuel shortage, coupled with the devastating drought, presents a significant challenge for farmers and regional communities, with far-reaching implications for food security and the broader economy.

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