Australia’s freight and logistics industry is under growing pressure, not because fuel is unavailable, but because escalating global prices are making it increasingly unaffordable, according to the Victorian Transport Association (VTA).
VTA Chief Executive Officer Peter Anderson said continued fuel price volatility is placing serious strain on transport operators, with unavoidable flow‑on impacts for businesses and consumers.
“There is fuel available in Australia,” Anderson said. “The challenge for freight operators is cost. Rapid increases in diesel prices are putting extraordinary pressure on businesses already operating on thin margins.”
Anderson said the VTA welcomed the federal government’s decision to bring forward $6.15 billion in concessional finance under its Economic Resilience Plan, particularly support directed at fuel and critical supply chains.
“Bringing forward the Economic Resilience Program is a positive and timely step,” he said. “Targeted support for fuel, logistics and supply chain businesses will help stabilise operations during periods of global disruption.”
While a recently announced ceasefire in the Middle East may deliver short‑term relief to global oil markets, Anderson cautioned that Australia remains highly exposed to international price shocks.
“Any easing of global tensions is welcome, but Australia’s reliance on imported refined fuel leaves us vulnerable,” he said.
Rising prices have also led to tighter fuel credit conditions, with some independent service stations unable to afford restocking, creating the appearance of shortages.
“This is not a supply failure — it’s a financial one,” Anderson said.
Fuel is one of the largest operating costs in road transport, and Anderson said it is unrealistic to expect operators to absorb sustained price increases.
“If these costs can’t be fairly recovered, businesses will fail, capacity will leave the market, and supply chain resilience will be compromised,” he said.
Anderson said transparent fuel levies, the topic of a Fair Work Commission hearing this week, remain a necessary commercial mechanism to manage uncontrollable cost increases, while longer‑term fuel sovereignty must remain a priority.
Anderson’s comments come in the same week Prime Minister Anthony Albanese made a charm-offensive visit to Singapore to ensure Australia isn’t hit with export controls if petrol and diesel shortages worsen in Asia amid the conflict.
Energy Minister Chris Bowen also told media this week that fuel supply into Australia was now guaranteed into the second half of May and contracts were being struck for June.
While Australian wholesalers buy most of their fuel from Asian refineries that have traditionally relied on crude oil from the Middle East, Bowen said there was a growing number of purchases from North America and Mexico.
Before he left for Singapore, the prime minister also revealed the government’s Export Finance Corporation agreed terms with Australia’s two remaining refinery operators about underwriting purchases of new fuel shipments.
The deal allows Ampol and Viva Energy to purchase cargoes of crude oil and fuel at elevated prices on the spot market and be protected from losing money if the international price of oil drops.
Under the agreement, the government will be able to direct Ampol and Viva Energy to send the supply to areas where there are fuel shortages.
“We understand just how critical fuel is to keep motorists, farmers and businesses moving,” said Scott Wyatt, CEO of Viva Energy.
“Our dedicated teams have been working tirelessly to keep our customers supplied from our Geelong refinery production as well as sourcing extra cargoes, managing challenging logistics and responding to rapid market developments.
“We are proud to be able to support the Australian Government in going above and beyond to secure additional fuel supply and see the country successfully navigate these challenging and uncertain times.”
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