Farmers Warn Fuel Squeeze Threatens Food, Welfare

The National Farmers' Federation says reports from its members across Australia show farmers and fishers in regional communities are increasingly struggling to secure fuel, putting food security and animal welfare at risk.

NFF President Hamish McIntyre said that increases in demand had put pressure on fuel retailers in regional areas.

"While overall national liquid fuel supplies may remain sound, impacts are being acutely felt in regional communities right now, especially among independent retailers, who rely on the 'spot market' for supplies," Mr McIntyre said.

"This is seeing concentrated impacts on regional communities where independent retailers dominate, which is very different from metropolitan areas.

"Given the uncertainty of imports and the increases in domestic demand across the country, the NFF recognises that major fuel importers are prioritising supply to existing contract holders, rather than releasing fuel into the 'spot markets'.

The Minister for Energy Chris Bowen just announced in Parliament that an extra 100 million litres of fuel will be kept in Australia. He has temporarily relaxed fuel quality rules to allow this to happen and told Parliament that Ampol Australia has committed to prioritise this redirected supply for regions of shortage and the wholesale spot market that supports independent distributors.

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