Markets 
Weather 
Queensland’s energy minister has called on the Commonwealth to prioritise the state’s farmers and rural communities while the nation is gripped by diesel shortages and high fuel prices.
Writing to federal Energy Minister Chris Bowen, Queensland Treasurer and Energy Minister David Janetzki called for “national leadership” to deliver a plan that would see fuel continue to flow for the state’s regions.
“Queensland families, businesses and industry, including farmers, rely on the national framework to support domestic fuel security and protect consumers and our economy from supply disruption,” Janetzki said.
“It is critical we get this plan from you, as with every passing day I fear we are on the precipice of major impact on daily life in our state.”
The cost of fuel across Australia were expected to rise as much as 30¢ a litre following a spike in global oil prices and panic buying across the nation outstripping immediate supplies.
The unfolding war in Iran and closure of the Strait of Hormuz, a bottleneck for about 20 per cent of the world’s oil supply, had almost doubled crude oil prices.
However, Bowen said last week long lines at the bowser were stoking price increases, and the former head of Australia’s consumer watchdog said it was too soon for the war to impact overall Australian supplies.
Bowen said: “Inevitably, when you’re seeing a huge increase in demand, they’re having trouble keeping up with that.”
“This is not a supply problem, but we’re seeing a huge spike in demand.”
Janetzki pointed to reports of smaller retailers across Queensland running dry as importers favoured their own distribution companies and larger businesses.
“I have … received concerning information that many small family-run fuel distributors supplying primary producers and transport are unable to secure diesel from major wholesalers,” he said.
“Based on recent discussions with producers and transport operators, there is a high risk of significant disruption within days if these refusals persist, threatening harvesting activities, agricultural production and transport, stock feed deliveries, water security reliant on diesel-powered pumping, and regional employment.”
He placed responsibility directly on the federal government, urging it to deliver a fresh plan to keep fuel flowing to Queensland’s regions and avoid necessary panic buying.
Janetzki also backed calls from industry bodies, including the RACQ, to probe service stations’ price rises.
“I have recently written to the Australian Competition and Consumer Commission (ACCC) with concerns that retailers may be unfairly raising costs with opportunistic pricing behaviours,” he said.
Fuel prices across Brisbane hit $2.19 quickly last week, growing from 40 to 160 stations overnight from Tuesday to Wednesday, said the RACQ’s Dr Ian Jeffreys last week.
“Looking at the Brisbane cycle, we should have been at a point when prices were going down,” Jeffreys said.
Get alerts on significant breaking news as happens. Sign up for our Breaking News Alert.
From our partners
Read the full article here
