As fuel costs escalate again, regional Australia is hurting
Regional industries and communities are feeling a "disproportionate impact" of rising bowser prices, a policy expert says.
High fuel prices in regional Australia are causing significant financial strain, an expert warns. The recent escalation of conflict in the Middle East has led to a resurgence in petrol and diesel costs. Dave Henry, a water cartage service provider in New England, has observed diesel prices reaching nearly $3 per litre, which is adversely affecting his profitability. He has no choice but to pass the increased cost onto his customers.
The federal government recently reduced its fuel excise reduction, exacerbating the issue. Rising fuel prices are not only impacting regional industries but also families. Kate Gotowski, a resident of southern Tasmania, spends up to $150 a week on fuel for daily commutes, which is straining her family's budget. She had to prioritize essential spending and delay non-essential expenses.
According to Andrew Henderson, a strategic policy specialist, regional Australia's reliance on trucks and transport tankers for fuel storage is a critical vulnerability. The region's fuel storage capacity has diminished over the past two decades, making it more susceptible to supply risks. Fuel prices are projected to continue rising, disproportionately affecting rural and regional Australia due to the challenges posed by distance.
The impact of fuel costs extends beyond transportation. Farmers like Taylor, who rely on fuel to maintain their properties, are witnessing a significant reduction in profits. The escalating fuel expenses have made it increasingly challenging for farmers to generate income, further straining regional economies.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
