A country service station’s fuel order backlog has surpassed one million litres as war in the Middle East hampers the global oil trade.
A country service station’s fuel order backlog has surpassed one million litres as war in the Middle East hampers the global oil trade.
Gnowangerup Fuel Supplies is one of at least seven service stations in the district to have either run out of fuel or implemented strict rationing since the conflict with Iran began last week.
The outlet in the Great Southern farming town 1.5 hours north of Albany implemented a $200 purchase limit on Tuesday, which would not be enough to fill up a Toyota Landcruiser.
Gnowangerup Fuel Supplies owner Ron Beeck said he had not received a fuel delivery since Saturday morning.
The station can store up to 250,000l and generally has 180,000l per day delivered, according to Mr Beeck.
“We haven’t been able to get any supply, and we have back orders of about 1.3 million litres,” he said.
“Probably half of my clients would be ordering fuel in anticipation for seeding.
“The fuel companies are very tight on [providing information] – they won’t tell us when ships due.”
Fuel restrictions in regional WA come as multiple federal ministers claim the fuel shortages are caused by panic-buying-induced demand, not supply.
“We have as much diesel in Australia today as we had before this crisis began, and the stock obligation, which the companies are legally required to meet, remains at 32 days,” federal Energy Minister Chris Bowen said.
“We are seeing a big increase in demand particularly for diesel, and I understand why Australians are concerned.
“But my key message is that every single expected arrival of diesel supply in recent days and expected in coming days and weeks has arrived on schedule as expected.”
Reports coming out of a snap-summit hosted by the federal government in Canberra today about fuel security indicated demand in some regional towns in Australia had boomed by as much as 280 per cent.
Mr Beeck said supply and demand were problems.
“They claim we have 36 days of supply in Australia, we have just proven we only have seven days,” he said.
“Once that 180,000 litres-per-day starts [coming through] it will take a week and a bit to get under control.”
WA’s fuel logistics dramas span beyond the Gnowangerup area.
Business News understands service stations in Kukerin, Lake Grace and Hopetoun have run out of fuel.
Restrictions on fuel sales have popped up in Corrigin, Wickepin, Wandering, Pingrup, Mukinbudin and Kulin.
Service stations in the large regional cities of Bunbury, Albany and Geraldton are either rationing fuel or have run out of some products.
Farmers are traditionally stocking up on fuel at this time of year ahead of seeding, which usually starts in April.
Cotton farmers in the Ord Valley are already seeding.
Shadow agriculture minister Lachlan Hunter said fuel shortages in regional WA risked becoming a food security issue if not addressed.
“We know what the state government has responsibility for, and that is to ensure that there is supply of fuel, particularly for critical industries like agriculture,” he said.
“Agriculture can't just put a pause button on the season.
“They have time frames that they need to abide by to ensure that we have successful crops that we can trade with the nation.”
The state government will host a fuel security meeting on Wednesday to inform a response to the situation.
WA Premier Roger Cook said he had been advised there were no direct impacts to fuel supply in WA due to the conflict, but that panic buying had increased.
The price of oil spiked to US$107-per-barrel on Monday and has since fallen back below US$90/barrel on the Brent index.
