King Island fuel crisis sparks shutdown fears as petrol station runs dry twice in one dayKing Island fuel crisis sparks shutdown fears as petrol station runs dry twice in one day

“When people went to fill up this morning, there was no fuel,” the islander said.

“Then about 11 o’clock, a truckload of unleaded arrived to refill the tanks, but we are worried this could happen again tomorrow, or on any day.

“There’s no public transport on the island, so everyone is reliant on fuel for transport.

“Everyone is talking about it because people were freaking.

“It’s scary because, of course, all our emergency service vehicles and our school buses need fuel to get around.

“Life on the island would come to a complete stop.”

King Island Motors proprietor, Paul Lay – whose costs of procuring fuel have doubled over the past few months, and who operates a significant government account on credit – described operating his business through the crisis as “a bloody nightmare.”

Mr Lay called on the Tasmanian government to provide greater levels of support for regional energy retailers, suggesting that low-interest loans for bulk fuel purchases and the faster settlement of government accounts would greatly improve his operating environment.

“I pay cash for my fuel and costs have doubled, so selling on credit leaves me carrying a huge burden,” Mr Lay said.

“The government could introduce a payment-card system for the ambulance, police, and fire service vehicles I supply.

“My markup has fallen recently, and sales are also down during this fuel crisis. This is not a short-term thing.”

Mr Lay, who sources his fuel from an on-island supplier, said after re-filling his station’s tanks on Monday morning, they had again fallen empty by mid-afternoon.

The retailer said while there had been plenty of government support for consumers during the ongoing energy emergency, much less official backing had been provided to regional businesses.

“Without industries such as mining, agriculture, and dairy bringing money in, there is no King Island,” Mr Lay said.

“But not many people are talking about how this is all affecting businesses supplying these industries with fuel.

“There was government help during Covid, and now a drop in the fuel excise to help consumers.

“You’re trying to do the right thing by the community, but what I’m having to pay for fuel right now is absolutely ridiculous.

“This government wants us to finance them, which makes it bloody hard.

“I would like the government to ask ‘what can we do to help these people who have been helping us’.”

While fuel was available all day on Monday at King Island’s other service station located at Grassy, prices at both outlets have been hovering at over $3 a litre for unleaded in recent weeks.

The concerned resident told the Mercury they were worried about how the community would continue to cope amid the ongoing uncertainty.

“We have had people asking where the hell are we going to get fuel from,” they said.

“I mean, there really should be a backup emergency supply of fuel kept on the island.

“We just didn’t think this would ever happen here. The island could just cease to function.”

On Monday the state government said it recognised the uncertainty that current global conflict was causing Tasmanians, and pointed to its advocacy on getting the national fuel excise on petrol and diesel reduced, and passing new legislation to ensure mandatory fuel codes of practice are enforceable.

“King Island residents have access to a variety of measures that reduce the price of travel to and from the island, including the Bass Strait Passenger Vehicle Equalisation Scheme and the Bass Strait Islands Age Pension Air Travel Subsidy,” a spokesperson said.

“The Tasmanian government strongly supports transport to and from King Island, such as through the wholly Tasmanian government-owned Bass Island Line freight service and support for Sharp Airlines to operate out of King Island.”