The National Farmers' Federation has welcomed today's announcement by the Government to temporarily reduce the Minimum Stockholding Obligation for petrol and diesel to help address current fuel supply chain disruptions.
"This is an important step by the Government that acknowledges the shortages being experienced in regional Australia, particularly as independent fuel retailers struggle to access supply through the spot market," NFF President Hamish McIntyre said.
The Government has indicated the change will allow companies to release up to 762 million litres of petrol and diesel from Australia's domestic reserves, where that fuel is prioritised for regional, agricultural and maritime customers experiencing supply shortages.
"The release of diesel supplies is especially important, given how critical it is to agricultural production," Mr McIntyre said.
"Trucks, tractors and fishing boats all run on diesel. It's essential for harvesting crops, transporting livestock and fodder, and getting food and fibre to market.
"We will continue working closely with its members and Government to understand the exact composition of this release and ensure the fuel is reaching the regional communities and industries that need it most."
Mr McIntyre said the NFF had been calling for the Government to use the policy levers available to stabilise fuel supply, and the announcement showed those concerns were being heard.
"It's imperative Government address the shortages being experienced across regional Australia and ensure farmers and fishers have the fuel they need to keep producing and transporting food."
