Australian farms face diesel shortage risk from China and Trump
Ampol warns China may stop exporting refined fuel, threatening 15% of Australia's seaborne diesel market.
Australian farmers gearing up for harvest face a diesel supply crunch that has little to do with Middle East tensions and everything to do with China and US policy. China has been a key stabiliser of Australia's fuel supply in recent months, although its oil reserves have almost halved in the past six months as global demand surges.
Ampol's managing director Matt Halliday warned that if China stops exporting refined fuel, it would wipe out 15% of the seaborne market in the region. The US poses another risk: American refineries are running at nearly 100% capacity with deferred maintenance.
President Trump faces political pressure to ban refined product exports to keep US diesel prices down. Halliday urged farmers to lock in multi-year fuel contracts and store extra diesel on-farm before the harvest rush.
- Almost halved in 6 months
- China's reserve decline
- 15% of regional imports
- Seaborne market at risk
- Close to 100%
- US refinery capacity
- Above $6 per gallon
- US diesel price
Why it mattersDiesel shortage or price spike during harvest season hits profit margins when farmers can least afford it.
AustraliaAustralian farming relies on steady diesel for vast transport distances and machinery; any supply drop or price surge during grain harvest directly cuts farm income.
✓ Claims checked against the source and corrected before publish. checked 2 d ago
