Shepparton’s diesel prices were edging closer to $3 a litre on Friday, as the conflict in the Middle East enters its fourth week.
Some regional fuel stations are running low or completely out of fuel, as the war in the Middle East continues to create anxiety and force demand upwards.
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In response to the growing crisis, Prime Minister Anthony Albanese has announced the formation of a fuel supply taskforce, led by former Australian Energy Regulator boss Anthea Harris.
Federal Energy Minister Chris Bowen said that while supply of fuel into Australia had remained steady, increased demand was causing service stations to run dry.
“Our fuel supply remains as it did before the bombing of Iran,” Mr Bowen told ABC Radio.
“The challenge we have is that demand remains very, very high ... doubled in a couple of days, any supply chain for any commodity is going to struggle with that."
Supply chain disruptions have hit regional areas the hardest, where many businesses and farming operations rely on diesel.
Country News has been told that bulk deliveries of diesel to some farms and transport operators in northern Victoria have been delayed or rationed.
One Echuca service station had run out of fuel, but was replenished.
A transport operator told Country News he waited for a week for a bulk delivery and paid $2.70/litre.
He calculated the increased price had added $300 to one interstate trip.
State Member for Euroa Annabelle Cleeland said locals were feeling the pinch of the fuel supply running out.
“I have been inundated with calls from farmers, freight operators, small businesses and families who simply cannot access fuel,” the Nationals MP said.
“In some communities this week, we have had no power and no ability to access fuel for jerry cans to run generators.”
Ms Cleeland pointed out that while everyone suffered from increased fuel prices, regional communities could face much worse consequences.
She also called for the Federal Government to halve the fuel excise and reduce the road user charge to keep freight moving.
“This is not just a cost-of-living issue, it is a supply crisis disrupting daily life and putting regional economies at risk,” she said.
“Regional Victorians should not be left exposed while metropolitan areas remain comparatively insulated.”
VFF president Brett Hosking echoed a similar sentiment.
“Farming runs on narrow weather windows, and if the tank is empty at the wrong moment you can’t just wait for prices to settle, you lose the opportunity, and sometimes the entire crop,” he said.
“Keeping farmers moving is in everyone’s interest.
“Victorian farmers grow almost a quarter of Australia’s food and feed millions more across the globe.”
The Motor Trades Association interim executive director Peter Jones said in an interview with AAP that there were reports of increased abuse of service station workers.
“We've had a lot of reports of service station attendants and staff being harassed,” Mr Jones said.
“They are not the people that make the price ... we've asked for people to be respectful.”
Fuel prices have risen across the Goulburn Valley. This picture was taken at a service station in Tatura on Thursday.
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