Australia’s grain industry relies on secure, reliable, and affordable access to liquid fuels to support every stage of production, from sowing and harvest through to transport and export. Over the past two decades, Australia’s domestic refining capacity has declined sharply, falling from eight operational refineries to just two in 2025. As a result, Australia imports around 91% of its liquid fuel supply, significantly increasing the nation’s exposure to global market volatility, supply disruptions, and geopolitical risks. It is essential that Australia avoids a “just-intime” approach to fuel supply and instead adopts a proactive, coordinated strategy to ensure long-term fuel security and safeguard Australia’s agricultural supply chains.
GRAINGROWERS SUPPORTS:
- A secure, reliable, and affordable liquid fuel supply to underpin Australia’s grain production and supply chains.
- The need to integrate energy security and food production policies to safeguard agricultural production during disruptions.
- The development of a domestic low-carbon liquid fuel (LCLF) industry to strengthen Australia’s sovereign fuel capability.
GRAINGROWERS RECOGNISES:
- Fuel security is vital to Australia’s grain industry and broader food security.
- 91% of Australia’s liquid fuel is imported, exposing the nation to significant risks from global market volatility and geopolitical tensions.
- The importance of regional fuel storage capacity, as grain-producing regions require timely access to fuel reserves to ensure continuity of harvesting and transport operations.
- Australia has experienced a major decline in domestic fuel refining capacity over the past two decades, increasing dependence on imported fuel.
- That geopolitical tensions in the Indo-Pacific, including disputes in the South China Sea, increase the risk of supply chain disruptions.
- The importance of ensuring the sustainability and resilience of domestic refining, storage, and distribution infrastructure to guarantee supply for essential civil, military, and agricultural needs in times of crisis.
GRAINGROWERS SEEKS:
- Recognition of farm businesses and the broader agricultural sector as ‘essential users’ in federal and state fuel security plans to ensure priority access during rationing or supply constraints.
- Ensure Australia’s strategic fuel reserves are distributed across Australia, including strategic regional locations, to minimise risk.
- Greater investment in domestic refining and storage to strengthen Australia’s sovereign fuel capability, enhance security of supply, and future-proof fuel access for essential civil, military, and agricultural needs.
- Support to develop a domestic low-carbon liquid fuel industry to reduce Australia’s reliance on imports.