Nerves rising over fuel price

Fiona Hobbs from the Congupna area had driven her Holden sedan into town for a refuel.

“This car is dual fuel, so I’ve put both gas (LPG) and ethanol in,” Mrs Hobbs said.

“I’ve done that because I live out of town and I want to have it ready. I won’t be driving it much now.

“The boys are working on a farm and if their little cheaper car gets low they can use this.”

Mrs Hobbs said she was struggling to get LPG last week and was starting to worry it might be caught up in the shortage too.

“My sister was thinking of putting her own fuel storage in on the farm, but in the end they decided against it because they thought it’d be too valuable and get stolen,” she said.

“But everything will go up because of this.”

Merino producer Judith Artridge from Ruffy was also in Shepparton for a refuel — kelpies included in the ute tray.

“The last time I bought diesel it was $1.80 and I thought that was too dear at the time,” Ms Artridge said.

“Now I’m paying $2.19 today. It’s too much and it makes me feel sick.

“I thought there would be less people on the roads and driving around because of it.”

Double-checking his load outside a Kialla petrol station was truck driver Mick Elliott.

“It’s a company truck, they pay for the fuel,” Mr Elliott said.

“The price is pretty much the same everywhere you go. We drive down to Melbourne every second day moving chemicals, mainly for the dairy industry.”

The last time petrol prices were this high in Australia was in June 2008, when daily average prices hit 212.9¢/litre in today's dollars

The VFF has called for the Federal Government to strengthen Australia’s fuel security and bring national reserves onshore.

“From sowing crops to transporting it to market, our entire supply chain is reliant on a secure, affordable and disruption-free fuel supply,” VFF president Emma Germano said.

“Members of the International Energy Association are obliged to hold 90 days of net fuel import and Australia has been non-compliant since 2012.

“While Australia does have strategic national reserves, they are stored in the United States and would take over three weeks to reach Australia in the event of a crisis.”

Calls for a temporary reduction in the fuel excise have also been made by some politicians, including some government MPs, Independent Senator Rex Patrick, some state premiers, unions and industry groups.

The fuel excise is currently 44.2¢/litre. Senator Patrick is calling for a 50 per cent reduction for 12 months.

“John Howard enacted an emergency fuel excise measure when he was in government, which had a profound and positive impact,” Senator Patrick said.

The Australian Transport Workers Union has written to the Federal Government asking it to address "the significant increases of fuel costs burdening transport businesses, in particular small operators and owner drivers on razor thin margins“.

“Whether financial support is through cuts to the fuel excise or a subsidy scheme for owner operators, the Federal Government must map out and track exactly how the relief will directly address the economic crisis at the lower end of transport supply chains,” the union wrote.

So far the Federal Government has resisted taking action, arguing the price spike is probably short-term and that the excise revenue provides valuable funds for road construction and maintenance.

Oil shocks often give rise to calls for mandating the blending of domestically-produced ethanol with petrol (E10).

Ethanol is mostly made from wheat and sugarcane in Australia, and corn starch in the United States.