TasFarmers, Media Release, 20 March 2026

TasFarmers has warned the Federal Government must immediately quarantine fuel for agriculture or risk disrupting national food production as supply uncertainty deepens across Australia.

The peak body says weeks of industry warnings have not translated into a clear plan, only ‘talk fests’, with reports of fuel shortages and extreme price variations already emerging in Tasmania and Australia-wide.

TasFarmers President Ian Sauer said farmers are entering a critical period in this crisis, with no certainty over diesel supply.

“We’ve been clear for weeks, no fuel will mean no food,” Mr Sauer said.

“Farmers cannot harvest or produce food if diesel isn’t guaranteed; production stops. It’s that simple.

TasFarmers is calling on the Commonwealth to activate the Liquid Fuel Emergency Act 1984 to prioritise fuel for essential services, including agriculture.

Mr Sauer said in the absence of a national plan, the government is fuelling panic and distorting supply.

“When there’s no plan, uncertainty takes over. That’s what drives panic buying and makes shortages worse,” Mr Sauer said.

“Government says it is listening. But across New South Wales, more than 40 service stations have reportedly run dry or missed deliveries. The same pressures are now being felt in Tasmania, particularly in regional areas.

“We’re hearing a lot of talk and roundtables, but we’re not seeing decisions. Farmers need certainty now, not reassurances,” said Mr Sauer.

Regional communities exposed

TasFarmers said rural and regional areas are already bearing the brunt of supply strain, with service stations running dry in NSW and large price gaps between locations in Tasmania.

In parts of Tasmania, diesel prices vary by more than a dollar per litre between nearby towns; it’s a signal of market stress and potential supply imbalance.

Mr Sauer said the consequences extend well beyond the farm gate.

“If fuel runs out, you don’t get crops in the ground. You can’t irrigate. You can’t move livestock. You can’t harvest,” he said.

“That flows straight through to food availability and prices for every Australian.”

Fertiliser pressure building

TasFarmers also warned of a fertiliser squeeze directly linked to oil supply, with urea supplies largely pre-booked and prices having doubled after Tasmania received its last foreseeable delivery into the state.

The organisation has written to the Australian Competition and Consumer Commission, raising concerns about potential price gouging in Tasmania.

“This isn’t just a fuel issue; it’s a supply chain issue,” Mr Sauer said.

“If inputs like fertiliser become unaffordable or unavailable, it compounds the risk to production.”

Call for immediate action

TasFarmers is urging the Federal Government to:

• Activate emergency fuel allocation powers
• Guarantee diesel supply for agriculture, freight and transport
• Work directly with industry to quantify demand and prioritise distribution
• Develop a long-term fuel security strategy to prevent future crises

Mr Sauer said the window to act is closing.

“You can’t wait until there’s two weeks of fuel left and expect to manage this properly,” he said.

“Government needs to recognise the scale of the risk, own it, and act now.”

TasFarmers will continue to press for urgent action and engage with national industry bodies to secure fuel access for producers.