‘Outrageous’: Farmers Struggling with Regional Diesel Shortages

Why It Matters

Without reliable diesel and fertilizer supplies, Australia’s food production and inflation outlook are jeopardized, threatening economic stability and rural livelihoods.

Key Takeaways

• Diesel shortages jeopardize regional farmers' winter planting schedule
• Government claims no fuel shortage despite farmer concerns
• Australia lacks mandated 90‑day diesel reserves required by IEA
• Imported urea and fertilizer supply also at risk, worsening food security
• Analysts warn recession risk if energy resilience not improved promptly

Summary

The interview highlights growing alarm in Australia’s regional communities over a looming diesel shortage that threatens the critical winter crop‑planting window. Farmers rely on diesel to run machinery, and the perception of an imminent supply gap has sparked panic buying and calls for government action.

Despite Prime Minister’s assurances that national fuel stocks are unchanged, former Deputy Prime Minister John Anderson and industry voices argue Australia has ignored its International Energy Agency commitment to hold 90 days of diesel reserves. The country also depends on imported urea and glyphosate, with supply chains vulnerable to Middle‑East production cuts and Chinese export controls, compounding food‑security concerns.

Anderson labeled the situation “outrageous,” accusing the government of sleeping at the wheel. He cited the IEA agreement, noting that only New Zealand and Japan maintain comparable reserves. The RBA governor’s recent recession warning and Treasury’s inflation models further underscore the macroeconomic pressure on an already strained agricultural sector.

If unaddressed, diesel and fertilizer shortages could depress harvests, lift food prices and deepen Australia’s recession risk. Policymakers face mounting pressure to build strategic fuel reserves, diversify supply sources, and restore confidence in the nation’s energy resilience to safeguard both the farming community and the broader economy.

Original Description

Former deputy prime minister John Anderson criticises the government for a failure to prepare for an external supply chain issue.

“Petrol gets you to work and maybe gets your kids to school, diesel feeds you,” Mr Anderson told Sky News host Peta Credlin.

“People are well aware that Australia is a complete outlier. Since the 1970’s, we have been a signatory to the International Energy Agency agreement … that we would hold a minimum of 90 days' stock.

“People know that’s not in place. We’re about the only country that isn’t.

“You can’t blame people for saying prime minister, you’ve been asleep at the wheel, this is outrageous, you’re putting our country at risk.”