A DECISION by the Australian government to establish a National Fuel Supply Taskforce led by Anthea Harris has been welcomed by the Australian Logistics Council.
The appointment was announced by the federal government on Thursday.
According to the ALC, diesel is the primary energy source for Australia’s supply chains, logistics, and freight transport, ensuring the movement of essential goods across the country.
ALC chief executive Hermione Parsons said the taskforce provided a timely mechanism to bring government and industry closer together as conditions continue to evolve.
“Fuel security is fundamental to the performance of the import, export and domestic freight supply chains and the costs of living.” Dr Parsons said.
“Maintaining clear visibility across supply, demand and distribution will be important in the weeks and possible months ahead.”
The ALC said the USA-Israel-Iran War was causing “massive global supply chain disruption, requiring “a reassessment of how existing freight capacity is being used, including the role of rail in supporting more efficient fuel distribution”.
“Better utilisation of the national freight network, including rail, can help ease pressure on the system during periods of disruption,” Dr Parsons said.
The ALC also said short-term cost pressures across the sector should not be overlooked, and they would call for consideration of targeted, temporary adjustments to fuel excise.
“Diesel costs flow directly through the supply chain. Where there is scope to provide measured, short-term relief, it should be considered as part of the broader government response. The price of diesel has doubled over the last few weeks as a result of the war and that increase is causing immense pressure on Australia’s road operators.
“At the same time Freight Rail must be considered as a supplementary measure with long term benefit,” Dr Parsons said.
The ALC said it would continue to work with government and industry to support the taskforce and ensure policy settings reflect the realities of how fuel and freight move across Australia.
Also welcoming the announcement was the National Farmers Federation.
President Hamish McIntyre said the government must provide "clear and timely information on how we will get diesel flowing into the regions".
"We continue to feed reports from our members directly to Government to ensure their experiences inform decision-making.
"We also welcome the ACCC’s announcement that it is moving quickly to investigate allegations of anti-competitive conduct by major fuel suppliers, particularly in the regional diesel market," he said.