International Fuel Restrictions: Impacts for regional Victoria

Written By Food and Fibre Gippsland

Supporting Our Sector Through High‑Level Engagement

We continue to actively represent our members and the wider agriculture sector through participation in a range of high‑level government and industry forums, ensuring regional perspectives are heard where it matters most.

Over recent months, this has included direct engagement with the Premier and relevant Ministers, participation in Agriculture Victoria sessions, and discussions with Department of Agriculture, Fisheries and Forestry (DAFF) focused on understanding and responding to the impacts of the current international fuel crisis on agriculture, supply chains, and regional food systems.

These forums provide an important opportunity to advocate for practical, real‑world considerations facing farmers, producers, and agribusinesses, while contributing sector insights to inform policy development and response planning.

To support transparency and keep our members informed, we have compiled key information and resources that have been shared across these discussion groups. You’ll find these resources linked below and updated regularly as new insights and information emerge.

We also encourage our members to share any feedback or on‑the‑ground insights that could help strengthen our advocacy and ensure member experiences are reflected in ongoing discussions. Contact us at members@foodandfibregippsland.com.au

Australian Government – Key Messages

  • Fuel continues to arrive in Australia in the quantities and frequency we need and expect. Shipment tracking shows sufficient fuel on its way to arrive within the next week. The Australian Government monitors this shipping data in real time.

  • People don’t need to stockpile or hoard fuel – Australia has enough for everyone. The Australian Government is asking everyone – the fuel suppliers, business and the community – to just keep purchasing based on your usual needs. Please remember to treat retail fuel station staff with the respect that all workers deserve.

  • Global benchmark oil prices remain volatile and up significantly since the Middle East conflict began and domestic fuel prices have also increased.

  • We understand the pressures this puts on cost of living, especially for those in regional areas and in the agricultural, transport and maritime sectors. The Australian Government is focused on ensuring our fuel gets where it is needed and is working closely with industry to address disruptions.

  • While Australia is not currently facing a physical shortage of fertiliser, we recognise that rising global prices, logistics disruptions and international uncertainty are already being felt by producers.

  • Most fertiliser for sowing is onshore or in transit, though some later-season supply remains exposed to global shipping and input constraints.

  • Government and industry are monitoring availability and exploring alternative supply and targeted logistics, complementing broader fuel supply actions

Australian Government actions to strengthen Australia’s fuel security and protect consumers from unfair prices

  • The Australian Government has announced a new Fuel Supply Taskforce in the Department of Prime Minister and Cabinet, with Anthea Harris appointed as the Fuel Supply Taskforce Coordinator.

  • The Taskforce Coordinator will support the work governments around the country are doing to ensure Australia is overprepared and quick to respond when facing fuel and other supply chain challenges arising from the conflict in the Middle East.

  • With shortages in specific areas due to an increase in demand in some locations, and further supply chain challenges expected throughout coming weeks and months, the Taskforce will lead coordination work to ensure the best outcomes for Australians and Australian businesses, including:

    • Driving coordination between the Commonwealth and the States and Territories on fuel security and supply chain resilience.

    • Providing consistent, coordinated updates to the Commonwealth and States and Territories on our fuel supply outlook as well as our domestic fuel distribution.

    • Supporting State and Territory governments to get fuels to their regions where they are in demand, and act as a single convening point for fuel supply and forward planning.

  • The creation of the Taskforce is in addition to recent Australian Government announcements that it would:

    • release of up to 20 per cent of the Minimum Stockholding Obligation for diesel and petrol (not for jet fuel) to support regions and farmers.

    • temporarily amend fuel quality standards to allow more petrol to reach the Australian market. This will allow an additional 100 million litres of Australian-refined petrol to enter the Australian market each month, rather than being exported, until 31 May 2026, with a further transitional limit until 31 August 2026.

    • Double penalties for false or misleading conduct and cartel behaviour.

    • Task the Australian Competition and Consumer Commission (ACCC) to ramp up fuel price monitoring, reporting weekly, with a focus on unusual price spikes

    • Work with industry to increase fuel supply to service stations, including by helping the fuel sector secure ACCC authorisation to coordinate supply and unlock bottlenecks.

  • The Australian Government or State jurisdictions do not set fuel prices.

  • Fuel companies – whether retailers or wholesales – typically need to sell fuel at a replacement cost. The price of a litre of fuel today needs to cover the cost of replacing that litre the next day, so they can continue to make fuel available for sale.

  • Volatility in global prices means that sometimes the changes in prices at retail service stations can jump around, as companies deal with sudden rises and falls in the cost of replacing fuel.

  • Retail fuel prices are continuing to be monitored by the competition regulator, the ACCC . We expect industry to act in the national interest and their cooperation is critical to keeping Australian transport moving and farmers growing.

  • The ACCC are closely watching market conduct in relation to all fuels, and will not hesitate to act swiftly to enforce Australia’s competition and consumer laws.

  • The ACCC has launched an enforcement investigation into allegations of anti-competitive conduct the major fuel suppliers, specifically relating to diesel supply in regional and rural Australia.

    • The exact nature of any enforcement actions would depend on the conduct uncovered and level of evidence available.

    • We encourage anyone to contact the ACCC if they have evidence to support this investigation (or any other conduct in violation of competition and consumer laws):

  • The ACCC’s weekly fuel price monitoring update will shortly expand to include 190 regional locations across Australia.

Key links

Victorian Government – Key Messages

  • We recognise Victorian farmers and regional communities are feeling concerned and uncertain. Reassuringly, fuel continues to arrive in Australia in the quantities and frequency we expect.  

  • While Australia's fuel supply remains strong, we recognise that some customers are experiencing the effects of high prices and localised shortages, and these are creating immediate and genuine impacts.  

  • The Victorian Government has announced that mandatory fuel price reporting laws are now in effect, meaning fuel retailers must set a daily cap on fuel prices and publish the price in advance. Under the scheme, you can find tomorrow's maximum fuel prices today, and know they can only reduce from there.

  • To find the cheapest fuel near you, access Servo Saver on the Service Victoria app.

  • The Victorian Government is monitoring the situation closely through forums including the National Oil Supplies Emergency Committee (NOSEC), and is actively engaging with fuel suppliers, business groups and agricultural representatives to understand the situation on the ground.

  • A Class 2 Controller has been appointed within the State Control Centre to lead preparedness activities and continuity planning for energy, agriculture and other key sectors.

  • For the latest Victorian fuel supply updates, visit  https://www.vic.gov.au/fuel-supply

  • Please visit Agriculture Victoria website for additional resources and information that may help farmers manage current conditions - agriculture.vic.gov.au/farm-management/fuel-and-fertiliser-supply

Practical information and support for farmers

 To help farmers manage current conditions, the following information and resources may be useful to share:

Conserving energy on farms

Practical guidance to help farmers understand and reduce energy costs on farms, including electricity, gas and liquid fuels, as well as alternatives to fossil fuels:

Liquid fuel storage safety

WorkSafe Victoria provides guidance on the safe storage and handling of flammable liquids, including petrol and diesel:

Financial and business support

Farmers across the state may also be managing drought and broader business pressures and can access a range of supports:

Mental health and wellbeing support

Agriculture Victoria partners with the National Centre for Farmer Health to support the delivery of health and wellbeing programs in farming communities:

On‑farm decision support and planning

Services, information and tools to support farm planning and development decisions:

 

Food and Fibre Gippsland https://www.foodandfibregippsland.com.au
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