A Sunshine Coast fuel station owner says panic buying – not a national shortage – is largely behind recent price spikes and local supply pressures.
Steve Amos, owner of Aussie World Garage, the Coast’s only unbranded independent fuel station, said confusion about Australia’s fuel reserves and global tensions had triggered a surge in demand that was temporarily straining supplies on land.
“There is no problem with supply,” Mr Amos told Sunshine Coast News.
“Even a month or two’s time, I don’t see that happening. The fuel is coming.”
Mr Amos said many people had misunderstood reports that Australia only has about 32 days of fuel reserves.
“The reality of the situation is we’ve got 32 days’ worth of fuel in the ground today,” he said.
“Tomorrow we’ll have 32 days’ worth of fuel, next Thursday we’ll have 32 days’ worth of fuel and last Thursday we had 32 days of fuel.”
Fuel shipments from refining hubs such as Singapore, Japan and South Korea continue to arrive regularly, he explained, but the recent rush to fill tanks has created short-term pressure at storage terminals.
“What’s happening is land-side supply is under pressure because there’s been so much panic buying,” Mr Amos, who has worked in the industry for decades, said.
“The fuel has been going out of the terminals at a faster rate than it can physically come in.”
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He said terminals across the eastern seaboard had introduced tighter distribution controls, prioritising company-owned sites, franchise outlets and contracted customers before independents like his.
Mr Amos went on to add that it meant some independent service stations were forced to buy fuel outside their usual supply agreements at significantly higher prices.
“They still have stock and they’re still happy to supply you,” he said.
“But it’s at a price they are willing to sell it to you – not necessarily a rate you’re willing to pay.”
Mr Amos said diesel had been particularly affected because of heavy demand from trucks, farmers and drivers of larger vehicles.
“A truck comes in and puts in 1000 litres – you don’t have that on your unleaded side,” he said.
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Farmers who normally receive bulk deliveries were also filling large transportable tanks at retail stations because wholesalers were struggling to keep up with demand.
The surge has been reflected in rapid price increases at the bowser.
At Aussie World Garage, diesel rose from $1.77 on March 4, to $2.05 on March 6, before jumping to $2.57 on March 7, where it remained on March 11.
Despite the increases, Mr Amos said his service station was not cashing in on the situation.
“My margin is exactly the same today as it was 12 months ago,” he said.
“As an independent we’ve made the decision to keep our margin as consistent as possible.”
Mr Amos said his station had not introduced fuel limits despite the surge.
“It’s a really difficult thing to do,” he said.
“You might have a mother with three kids trying to get back to a sick parent in Sydney who needs a full tank.”
Instead, he urged motorists to buy only what they need.
“There’s no reason to panic buy. Panic buying caused the problem,” he said.
“We just need to let the terminals receive the fuel that’s already on the ships and get back to normal.”
However, he acknowledged global factors could still keep prices elevated, including surging shipping costs and war-related insurance premiums for tankers.
“The cost of freight for ships has more than doubled,” he said.
“So there are a lot of factors in the price right now that people don’t necessarily see.”
