Australia’s economy runs on diesel, not petrol, and maintaining supply security and consumer confidence will be critical to keeping the nation moving according to mcm Logistics General Manager, Katharina Attana.
Speaking on the issue with Karl Stefanovic this week, Attana emphasised the critical importance of a unified response, noting that the nation’s economy is heavily dependent on diesel.
“Coordinated responses are really critical – 95 per cent of our transport runs on diesel,” she said.
“We speak a lot about petrol but our country really runs on diesel.”
While Australia is not at immediate risk of running out of fuel entirely, supply disruptions are already being felt across key industries, with service stations, farmers and construction operators – among others – experiencing shortages and rising costs.
Australia is in a comparatively strong position globally due to its natural resources, such as gas, minerals and agriculture product for export, but must act quickly to secure long-term supply agreements.
“It’s really important that we now leverage what we have with other countries to build long term supply contracts and ensure our supply because consumer confidence and supply of diesel is most important right now,” said Attana.
Despite calls for intervention, Attana stopped short of advocating for mandated fuel rationing, instead reinforcing the importance of stability and planning within the supply chain.
“Our industry only works well if we can plan,” she said.
“If all of a sudden we have spikes in consumer demand everywhere, this is really what puts out the efficiency.”
She added that maintaining confidence in fuel availability is key to avoiding panic-driven disruptions: “It’s really important that we secure diesel and petrol. People will adjust; people will carpool, and they will find their own solutions. I don’t think the government needs to mandate anything right now.”
In related news, the Federal Government will move to shield road transport operators from rising fuel costs.
Meanwhile, the Victorian Transport Association (VTA) – today – has welcomed the Commonwealth Government’s announcement of immediate legislative changes to help Australian transport operators better manage escalating fuel costs.
The Federal Government’s initiative, announced on 23 March 2026 by Minister for Employment and Workplace Relations, Amanda Rishworth, and Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, will amend the Fair Work Act to allow operators to make emergency applications for contract chain orders.
These orders will enable the Fair Work Commission to require transport clients, including retailers, miners and manufacturers, to offer fair contract terms that reflect rapidly rising fuel prices. Under current law, transport operators must wait a minimum of six months before such orders can take effect. The reforms remove this delay, giving the sector a vital safety valve during global fuel volatility.
VTA CEO, Peter Anderson, said the Government’s response was a timely and necessary measure that recognised the essential nature of freight operators and the acute pressures they face.
“The VTA strongly supports the Government’s commitment to ensuring fuel cost shocks are shared fairly along the supply chain,” he said.
“For years, we have emphasised that fuel is one of the most significant and unpredictable operating expenses in road transport. When prices spike suddenly, operators simply cannot shoulder these increases alone.
“This announcement gives freight and logistics businesses the ability to seek urgent relief when global events cause unsustainable price surges. It reinforces a principle we have long advocated – that transport contracts must enable operators to recover genuine cost movements in real time.”
Anderson said the reforms also acknowledged the critical role of transport workers and businesses in keeping the Australian economy functioning.
“Every product Australians rely on moves at some point on heavy vehicles,” he said.
“Without mechanisms to pass rising fuel and operational costs through the supply chain, our capacity to keep freight moving is compromised.
“The Government’s decision ensures fairness, transparency and sustainability – not just for transport operators, but for the customers and communities that depend on them.”
The VTA also welcomed commentary from the Ministers acknowledging both the essential role of truck drivers and the disproportionate impact fuel volatility has on road freight operators.
Anderson said the Association looked forward to working closely with the Government, the Fair Work Commission, ARTIO and industry stakeholders to support smooth implementation of the emergency application process.
