On The Land
21 March, 2026
Rising farm fuel costs will be passed on
LOCAL primary producers are calling for more fuel reserves across the nation as the growing effects of the Middle East conflict and the effects on oil-producing countries is causing rising fuel costs and supply difficulties.
FNQ Growers chairman Joe Moro said there was no sector in Australia that would not be affected by the rising costs of fuel.
“For farmers and other primary producers, the very fuel itself has to be transported hundreds, if not thousands, of kilometres from ports to each and every agricultural and horticultural activity – some for machinery, some to supply electrical power to remote properties,” he said.
“Then the primary producers have to transport crops, produce, stock etc. to markets and depots, often in far off capital or major regional centres, and then more fuel is needed to transport everything we consume as foodstuffs, equipment etc. to destinations right across the nation, so it is inevitable that costs will rise in all sectors.
“The reality is that Australia is confronted with hundreds if not thousands of ‘food miles’ to supply our markets, so costs will be passed on to consumers as a result of oil supply difficulties.”
He said most local farmers and primary producers had extended their farm fuel storage, but the difficulties came when they need to replenish those fuel supplies and the effects of rising international oil prices.
Asked about delivery time deadlines for fuel, Mr Moro said: “Currently, some delays of a couple of days are being experienced, the usual two or three days delivery after ordering has been extended to four or five days in some cases, but while there is a time lag, at this stage, current supplies are holding up.
“Farmers and other fuel reliant industries might have ordered more fuel as back up security, but fuel companies have been faced with the problems of having increasing numbers of orders, but only the same number of delivery vehicles to transport to on-farm destinations, so delays are inevitable.
“Add to that the fact that Australia as a nation carries only a meagre 30 days of oil supply and that places us all in a precarious position.
“It is worth noting that farmers were among the many other Australian industry groups who have been pushing for a retention of national 90-day fuel supplies of a few decades ago, and development of the nation’s oil reserves because of our relative isolation from major oil-producing nations.
“Accordingly, governments were warned repeatedly to hold 90 days of national fuel stock over the past three decades, but the requests and subsequent advice have continually been ignored by all governments.
“It’s not only fuel prices that are affected, farmers rely on fertiliser supplies, and the greater amount of fertilisers are based upon petrochemicals for production, so fertiliser prices also will be affected by rising costs.
“Eventually, these too will have to be passed on to consumers as they are a significant cost component for modern day primary production in one way or another.”
In a statement, RaboResearch warned that although fertiliser supply disruptions were global, the effects of fertiliser supply would be uneven, with nitrogen, ammonia and sulphur markets all heavily reliant on Middle Eastern supply.
“Tightening supply of ammonia, phosphate rock, and sulphur, paired with higher global energy prices, will push production costs higher, particularly in North Africa and Europe,” the report warned.
“If the conflict continues to escalate, fertiliser affordability is likely to deteriorate further, increasing the risk of reduced application rates and demand rationing through 2026.”
Mr Moro added: “It appears that no one is insulated from the worldwide rising costs of oil as a result of the current Middle Eastern conflict.”
