Global oil turmoil threatens food production and supply costs across Australia
Middle East tensions and Ukraine conflict are driving diesel prices higher, threatening Australian farming and freight at harvest time.
Queensland's harvest season is hitting peak demand for diesel just as global oil supplies tighten. Middle East turmoil has closed one of the world's largest oil transport routes.
Ukrainian attacks have damaged Russian refineries, both cutting supply. Diesel runs Australia's tractors, harvesters, trucks and cargo ships.
Every farm and transport chain is vulnerable to price spikes. Farmers say rising diesel costs hit their profit margins hard.
Any price rise flows into supermarket shelves through higher freight charges. The country has 41 days of petrol, 33 days of diesel and 28 days of jet fuel in reserve, with 48 ships on the way.
Australia relies almost entirely on imported fertiliser. Russia and Belarus supplied nearly a fifth before the war.
- 33 days
- Diesel reserves
- 48 en route
- Ships inbound
- Almost $US140 per barrel
- Brent crude peak
- Nearly one-fifth
- Pre-war fertiliser from Russia/Belarus
Why it mattersDiesel powers food production and transport across Australia. A shortage could push costs through the entire supply chain and onto household grocery bills.
AustraliaAustralian farmers face soaring input costs at a critical time, and any fuel shortage would raise food prices nationwide and threaten farm viability.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
Open this story in InSnip →
