Eighty NSW petrol stations without diesel as price passes $3 a litre

Premier Chris Minns says the effects of limited fuel supplies are being felt across NSW, and about 80 petrol stations were without diesel on Thursday as the cost passed $3 a litre in parts of the state.

The average price of petrol rose 5c a litre in 24 hours to $2.38 in Sydney. Minns said independent retailers were especially afflicted by issues accessing regular supply. In Broken Hill, diesel reached 305.9¢ a litre on Thursday afternoon, while Tibooburra in the far north-west recorded 315.9¢.

“Undeniably, we’re seeing shortfalls and limited supply in some markets,” he said.

With no sign of the war in Iran concluding, concerns are growing about a potential fuel supply shortage and a broader hit to the economy. Prime Minister Anthony Albanese on Thursday announced a new taskforce designed to co-ordinate fuel supply and security between federal, state and territory governments.

Fuel prices continue to rise after Australia has posted its most expensive average weekly petrol price on record (219.5¢ on Sunday).

Minns attributed the problems to “distribution challenges”, as he urged consumers not to purchase more than necessary.

“This is a disruption. There’s no doubt about it. It’s clear there are uncertain times for businesses and families,” he said, noting there were about 80 petrol stations without diesel on Thursday and about 40 unable to access petrol. There are about 3000 petrol stations across NSW.

As other countries enact policies to conserve fuel supplies, such as Sri Lanka mandating a four-day workweek because of concerns about a prolonged conflict in the Middle East, Minns said, “as it stands today, I’m not proposing radical measures”.

NRMA spokesman Peter Khoury said shortages were being driven by demand, rather than supply, as consumers panic-bought. As the ACCC announced an investigation into allegations of anticompetitive behaviour by major fuel suppliers, Khoury urged the federal government to protect independent retailers.

“It is absolutely critical at this point the federal government does everything possible to protect independents. If we lose independents through this crisis Australia will be worse off in the long term because they are the ones who compete on price,” he said.

Jonathan Watson, a Blue Mountains carpenter, paid $170 last time he filled up his diesel ute. “I don’t know what it will be next time,” said the 28-year-old, who drives 110 kilometres every day.

Bowser prices have placed stress on his bottom line, and he faced hard decisions about his business. On Thursday, he noticed two stations that were out of either petrol or diesel.

Ricegrowers’ Association of Australia executive director Graeme Kruger warned diesel shortages would translate into higher prices for consumers.

“Farmers bear the most risks up the whole value chain. The longer this continues, it will lead to an increased cost on supermarket shelves,” he said.

“Are there issues with supply? Yes and no. Farmers began to prepare and plan when we realised this was going to be a problem. There will be a problem in the next three weeks if this continues.”

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