Peak body Road Freight NSW (RFNSW) has warned that escalating hostilities in the Middle East are continuing to drive-up petrol and diesel prices across Australia and today called on the Albanese Government to ensure adequate, consistent fuel supply for freight operators.
RFNSW Chief Executive Officer Simon O'Hara said any sustained rise in global oil prices would lead to higher prices at the bowser, increasing the cost of transporting groceries, pharmaceuticals, construction materials, agriculture and other essential goods.
"Diesel is the life blood of the freight industry and is by far, the biggest operating cost for trucking operators, who move the vast majority of freight in NSW," Mr. O'Hara said.
"When global oil prices spike, the impact is felt almost immediately by transport companies and then right across the supply chain. If fuel prices continue to increase, so too, will the cost of transporting goods - and those costs will pass through the supply chain and on to consumers at the checkout. Ultimately, every Australian household will feel it."
Mr. O'Hara said RFNSW members were 'very apprehensive' about the threat of ongoing oil disruptions and warned that securing the supply of diesel and the additive AdBlue must remain a 'national priority' for the Federal Energy Minister Chris Bowen.
"With hostilities in the Middle East escalating, the Government must ensure freight operators have reliable access to diesel and AdBlue. There is a federal emergency framework that can prioritise essential users and manage allocation, but the aim should be to avoid ever getting to that point through adequate stocks and planning," he said.
"We've seen during previous oil supply disruptions how quickly they can impact the NSW transport sector, so ensuring consistent supply of both diesel and AdBlue must remain a priority. Without reliable supply, trucks simply can't operate and supermarkets, pharmacies, farms and construction sites will run dry.
"Australia has improved fuel holdings, but we remain exposed to global price shocks and prolonged disruption risk. RFNSW is calling on the Federal Government to strengthen fuel security settings toward the IEA's 90-day benchmark, maintain clear contingency planning under the Liquid Fuel Emergency framework to prioritise essential freight and ensure strong ACCC oversight to deter opportunistic pricing behaviour during periods of volatility.
"Trucking businesses are already struggling with extremely tight-margins due to rising operating costs, so a prolonged disruption to oil supplies would add significant pressure to the freight industry and to our customers that rely on us for their essential, daily goods."
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About Road Freight NSW
Originating in 1893, Road Freight NSW (RFNSW) is the peak industry organisation for the road and freight industry in NSW and engages in advocacy, government and media relations on behalf of members.
