Queensland Energy Minister David Janetzki says the state is potentially on the “precipice” of fuel security issues having a major impact on the daily lives of Queenslanders.
He has written a letter to his federal counterpart, Chris Bowen, calling for an immediate update on the Commonwealth’s plans for fuel security.
Mr Janetzki said Australians expected a strategy that protected the economy, industry, productivity and national security.
“It is critical we get this plan from you, as with every passing day I fear we are on the precipice of major impact on daily life in our state,” he wrote in his letter.
David Janetzki says he fears Queensland is “on the precipice” of a major impact on daily life amid a spike in demand for fuel. (ABC News: Luke Bowden/File)
Mr Janetzki noted Queensland was experiencing retail “stockouts” of some types of fuel, particularly for diesel.
But he said this was due to price volatility and major wholesalers imposing limits to contracted volumes, rather than a physical shortage of supply.
“There are reports in parts of regional Queensland, where fuel distribution relies heavily on independent contractors, of wholesale fuel supplies being denied as importers and major wholesalers prioritise their company-owned networks and large contracted bulk customers,” he wrote.
Rising fuel prices put pressure on truckers
“I have also received concerning information that many small family-run fuel distributors supplying primary producers and transport are unable to secure diesel from major wholesalers.
“Based on recent discussions with producers and transport operators, there is a high risk of significant disruption within days if these refusals persist, threatening harvesting activities, agricultural production and transport, stock feed deliveries, water security reliant on diesel-powered pumping, and regional employment.”
Fears of stock losses
Warwick Trim is concerned the fuel insecurity will lead to stock losses for producers. (Supplied: Warwick Trim)
The town of Texas, on Queensland’s southern border, has run out of fuel, which is causing turmoil for the region’s agricultural industries.
Owner of Texas Bulk Fuel Co. Warwick Trim said it was particularly disastrous for cattle feedlots in the area, which rely on diesel for feed mills, feed trucks and water infrastructure.
“As soon as that infrastructure fails, they’ve got a 48 to a 72-hour window to somehow remedy that and otherwise it will be straight into euthanising stock,” he said.
“We’re looking at thousands and thousands of head worth of stock loss.”
Mr Trim said he had limited supply in the depot that was already allocated to customers deemed critical, but would be totally out diesel by the end of the week and was unsure when more stock would arrive.
Diana Colley, who owns the local service station in Texas, said she was all out of all fuel and did not know when it would be restocked.
“We’re in a pretty dire situation at the moment,” she said.
“It’s stressful for everyone. It’s stressful for myself and my staff to stand here and tell people all day long, we have no fuel and we don’t know when we’re going to have fuel.”
Diana Colley says people are carting water to their homes in a “pretty desperate situation”. (Supplied: Diana Colley)
She said many people were also carting water for stock and their homes.
Both business owners have called on the government to intervene.
“We’ve got to keep the rest of Australia going, not just parts of it,” Ms Colley said.
Warwick Trim said diesel reserves on defence bases could also be allocated to producers that are going to fail.
Transport operator Debbie Gostelow said her business Gostelow Transport was weighing up whether to accept long-haul jobs because of concerns about fuel access.
“We’re really concerned if we take these jobs, does it mean we get 1,000 kilometres from home and are not able to fill up again?” she said.
“We’ve had truck drivers reporting … that some servos have stopped filling trucks, they can’t fill them to the brim.”
‘Not a supply problem’
On Monday, Mr Bowen met with the petroleum and diesel industry and is expected to hold further talks on Tuesday.
He said Australia had good stock levels of petrol, diesel, and jet fuel — but acknowledged the country was facing a surge in demand.
“Every contract for demand that has previously been ordered, for diesel, petrol or anything else, is being honoured,” the minister said on Monday.
“There has been a big spike in extra orders over and above contracts — spot orders if you like, the spot market.
Chris Bowen says Australia has a “good supply” of petrol, diesel and jet fuel. (ABC News: Matt Roberts/File)
“And inevitably, when you’re seeing a huge increase in demand, they’re [industry] having trouble keeping up with that.”
Mr Bowen said the government was in talks with the industry to determine the best way to manage the uptick in demand.
“The fundamentals are good in that Australia has a good supply,” he said.
“This is not a supply problem, but we’re seeing a huge spike in demand.”