Peak Body Road Freight NSW (RFNSW) has welcomed the Federal Government's move to strengthen energy security ties with Japan, saying the agreement is a critical step in protecting Australia's fuel supply and keeping freight moving.
Announced by Foreign Minister Penny Wong, the partnership will deepen cooperation between Australia and Japan on energy security, supporting more stable and diversified fuel supply.
RFNSW Chief Executive Officer Simon O'Hara said the agreement reflects the importance of working with trusted international partners to safeguard critical supply chains.
"Energy security is freight security," Mr O'Hara said.
"Strengthening ties with Japan - one of Australia's most important energy partners - is a practical step to improve supply stability and reduce risk in an increasingly uncertain global market."
Mr O'Hara said the agreement could also deliver quality benefits for the industry, with fuel sourced from Japan – which has about 214 days' worth of oil reserves - typically meeting higher and more consistent standards than some alternative supply sources.
"Fuel quality matters. Higher quality diesel reduces the risk of engine damage, improves performance and helps operators avoid unnecessary maintenance costs," he said.
Mr O'Hara said global fuel disruptions have exposed vulnerabilities in Australia's supply chain, particularly for industries that rely on consistent, real-time delivery.
"The road freight sector operates in real time. When fuel supply is disrupted, the impacts are immediate across the economy," he said.
"Stronger international partnerships like this help provide the certainty operators need to keep goods moving."
RFNSW said the agreement should form part of a broader national focus on fuel resilience, including secure supply, consistent quality and policy settings that ensure costs are fairly distributed.
"If we want to keep Australia moving, we need a system that backs in the businesses doing the heavy lifting every day," Mr O'Hara said.
"This announcement is a strong step in the right direction - now we need to build on it."
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