Fuel, diesel prices keep rising, creating concerns about supply in regional WA, impacts on transport industry

Jumps in diesel prices and ongoing confusion about petrol supply could lead to increased food costs and further cost of living pressure, with businesses and households feeling the squeeze in regional WA. Cam Dumesny, CEO of Western Roads Federation, said there had been reports of problems with diesel and fuel supply, which could lead to panic buying and increase of transport costs. “It’s basic economics, if there’s uncertainty of supply, then prices rise,” he said. “I’ve had members that have had a 40¢ per litre price rise in bulk diesel just in the last week. It’s expected that that will go up. Diesel, generally, is about a third of your operating costs for transport.” Mr Dumesny said the freight system was “under pressure” and it would “impact every regional community”. WA shadow agriculture and food minister Lachlan Hunter said farmers had reported that diesel deliveries had been halted across regional WA, with some told supply may not resume for up to six weeks. “I have spoken directly with farmers who have been told there is simply no diesel available and that deliveries could be delayed for weeks,” he said. Mr Hunter voiced concern that a growing diesel shortage could force WA farming operations to down tools. Supply issues have already impacted some small businesses, who are struggling to maintain their fuel supply. Phil Rossiter, owner of Walkaway General Store, ran out of fuel on Monday and was unable to get more from his supplier. “He reckons it’ll be at least a week where he gets any and of course, the big guys will get it first,” he said. Mr Rossiter said because his store also operates as a post office and general store, the fuel would not impact his business too much. FuelWatch WA manager Ben Derecki said the war in the Middle East had caused the international benchmark of petrol and diesel prices to “jump significantly”. “The benchmark for petrol had risen 30 per cent, and the benchmark for diesel had risen 60 per cent,” he said. With 11 Geraldton fuel stations setting their prices above $2/L on Tuesday, Mid West residents don’t seem to be getting a break from rising cost of living. The most expensive stations were Caltex Tarcoola and Shell Reddy Express Tarcoola, both going for almost $2.20/L. Some fuel stations are still priced below $2/L, including Smart Mart Pure Convenience, Ampol Foodary Wonthella, and BP Wonthella Service Station at $1.899/L. The most expensive diesel in town was at Atlas at almost $2.41/L followed by Petro Fuels in Bluff Point at $2.35 and Refuel Australia outlets at $2.33. All three petrol stations in Meekatharra had their unleaded fuel priced above $2.25/L. The Meekatharra Corner Store was the cheapest at $2.27/L, while the Meekatharra Caravan Park remained steady at $2.28/L. Shell Reddy Express Meekatharra Roadhouse jumped up 10 cents from Monday to $2.37/L. Meekatharra’s diesel situation was also on the pricier side, with the Refuel Australia branch costing motorists $2.47/L. On Wednesday morning, six Geraldton fuel stations had long queues of cars waiting to fuel up, with many having some unleaded bowsers unavailable. It is unknown if the bowsers were unavailable based on having run out of unleaded petrol, or if the stations were attempting to ration supplies. Metro Fuel Station in Mahomets Flats informed customers it had temporarily revoked its 5c per litre discount through signs stuck to each bowser. Metro said the slash of its discount was effective immediately and would continue until “further notice” because of the Middle East conflict. All service stations in Carnarvon are priced above $2.17/L for their fuel, with EG Ampol Carnarvon charging the most at $2.29/L. Their diesel prices are similarly high, with all outlets priced above $2.18 and the most expensive being Refuel Carnarvon, who have priced their diesel at $2.40/L. Mr Derecki said it was difficult to predict how long the inflated prices would last for. “What we can do is look at the international benchmarks, and we know it takes up to a couple of weeks for some of those prices to come through. And so given the direction that benchmark is heading at the moment, we would expect prices will continue to rise in the short term,” he said. Premier Roger Cook has said that WA has “sustainable supplies” of fuel and that the State Government will continue to monitor the situation.