IN SHORT

• Regional farmers across the Barwon electorate are reporting difficulties securing diesel supplies just ten days into the conflict with Iran, with some unable to place new orders and others facing rationed deliveries.
• Federal Energy Minister Chris Bowen confirmed fuel companies are required to maintain 32 days of diesel but said regional demand has skyrocketed.
• Member for Barwon Roy Butler has called for large-scale distributed fuel storage near farms and mines, saying Australia falls short of the International Energy Agency's 90-day reserve requirement.

Regional farmers are struggling to secure diesel supplies as the conflict with Iran puts pressure on national fuel reserves, with the Member for Barwon Roy Butler calling for an urgent rethink of how Australia stores and distributes fuel.

Federal Energy Minister Chris Bowen confirmed today that fuel companies are required to maintain 32 days worth of diesel, but said regional demand had skyrocketed since the outbreak of war in the Middle East, placing pressure on supply in rural areas.

Farmers in the Barwon electorate have contacted Mr Butler's office to report they have been unable to place new orders for diesel or that supplies are being rationed, with some told that refineries are ceasing deliveries to regional areas while they assess incoming supply.

Mr Butler said the situation had real consequences for agricultural operations that could not be paused.

"We're just ten days into the conflict with Iran and already local farmers are unable to secure diesel for agricultural operations and machinery," he said. "Cattle can't wait to be fed, and the planting window can't be moved to suit international circumstances."

Mr Butler argued the disruption had exposed a gap in federal planning, saying Australia falls well short of the 90-day fuel reserve required by the International Energy Agency.

"This energy shock has exposed the lack of federal planning to ensure the country has 90 days of fuel available, as required by the International Energy Agency," he said. "It also shows that diesel needs to be stored close to where it's needed, not just in capital cities."

Mr Butler said a proposal to establish large diesel storages near farms and mines across the country, which he said would have lifted national reserves to 50 days, was rejected by both the former federal and NSW Coalition governments in 2022 and 2023. He said had that plan proceeded, it could have reduced the impact of the current disruption.

"Right now, we could have had a huge supply of diesel distributed across the country close to mines and farms," he said. "This would have allowed us to wait out supply interruptions and therefore avoid panic buying."

Mr Butler also raised concerns about the potential for price increases, noting many local farmers were only recently emerging from drought.

"Skyrocketing diesel costs are the last thing local farmers need to deal with, especially with many just emerging from drought," he said.

The federal government has not yet outlined specific measures to address regional supply shortfalls. Back Country Bulletin has contacted the office of Energy Minister Chris Bowen for further comment.