Independent fuel distributors in Australia have defended farmers against accusations of panic-buying, as regional areas bear the brunt of a fuel supply crisis triggered by the Middle East conflict. Paul McCallum, director of Inland Petroleum, said farmers had responded to soaring prices and limited availability by bringing forward diesel orders, requesting 1.5 million litres from his company.
McCallum noted that wholesale refined product prices had risen by 70 cents a litre, and independent retailers were struggling to obtain fuel from major companies such as Mobil, BP, Ampol and Shell. He said these companies were allocating stock to selected service stations, leaving independent distributors and some smaller branded sites without supply.
Nathan Falvo, a petrol station owner in Robinvale, Victoria, reported running out of unleaded fuel for about 10 hours after his normal orders were not fulfilled. He typically sells 12,000 to 18,000 litres of fuel per week and receives two to three refills from a local distributor supplied by a major company.
The Australian Institute of Petroleum, representing the four major suppliers, acknowledged that its members did not have sufficient inventory to supply businesses that relied on the spot market. The institute's chief executive, Malcolm Roberts, said members had to prioritise regular customers and cease spot sales.
The federal government has denied fuel shortages and urged against panic-buying, but regional MP Roy Butler said the crisis was hitting rural industries hard. Prime Minister Anthony Albanese called a snap national cabinet meeting on fuel supply for Thursday morning.
