Australia’s fuel security discussion is often framed around national security, geopolitical risks and strategic reserves.
These are important considerations, but from the perspective of the freight and logistics industry there is another critical dimension that deserves equal attention: productivity.
For transport operators, fuel security is not simply about having sufficient fuel available during a crisis. It is about ensuring the nation’s supply chains can operate efficiently every day, supporting economic activity, business investment and the reliable movement of goods across the country.
This was a key message in our recent submission to the Commonwealth Government’s consultation on strengthening Australia’s fuel security and resilience.
The submission highlighted the direct connection between fuel security, supply chain performance and national productivity.
The freight industry sits at the centre of the Australian economy. Every sector relies on transport. Manufacturers depend on reliable freight services to move inputs and finished products.
Retailers rely on consistent deliveries to keep shelves stocked. Agricultural producers need efficient freight networks to reach domestic and export markets.
None of this occurs without fuel.
While advances in vehicle technology and alternative energy sources continue to emerge, diesel remains the backbone of Australia’s heavy vehicle fleet.
As a result, the security, availability and affordability of fuel remain fundamental to the industry’s ability to operate efficiently and competitively.
For many transport businesses, fuel represents one of the largest operating expenses. Significant price fluctuations can quickly impact operating margins, particularly in a sector where many companies operate under tight commercial conditions and long-term contractual arrangements.
When supply disruptions occur, the effects extend well beyond transport businesses themselves. Increased freight costs ultimately flow through supply chains, contributing to higher costs across the broader economy.
This is why fuel security should be viewed not only as a strategic national objective but also as an economic and productivity policy.
Australia has taken positive steps in recent years to strengthen fuel security through strategic stockholdings and initiatives that support domestic refining capability. These measures are important, but fuel security cannot be measured solely by the volume of fuel stored in reserve.
A genuinely resilient fuel system requires a coordinated approach across refining, importing, storage, distribution and transport infrastructure.
Fuel must not only be available nationally; it must also be capable of reaching businesses and communities when and where it is needed.
Infrastructure therefore plays a central role in fuel security outcomes. Ports, bulk fuel terminals, road networks, rail corridors, pipelines and distribution facilities all contribute to the movement of fuel throughout the economy.
Any weakness within these networks can create bottlenecks with significant operational consequences for freight operators and their customers.
The VTA submission also recognised the importance of maintaining domestic fuel production capability.
While Australia will continue to participate in global fuel markets, retaining local refining capacity provides an additional level of supply assurance and helps reduce exposure to international disruptions.
At the same time, the industry sees growing potential in alternative liquid fuels and emerging energy technologies. Renewable diesel, biodiesel and other low-emission fuel solutions offer opportunities to strengthen energy security while supporting Australia’s environmental objectives.
However, the transition to alternative fuels must be practical, affordable and commercially viable. Freight operators need policy certainty, investment confidence and adequate infrastructure if these technologies are to be adopted at scale.
As Australia continues to examine its long-term energy security settings, it is essential that the practical needs of the freight and logistics sector remain at the forefront of policy discussions.
Transport operators are not merely end users of fuel. They are a critical component of the supply chains that keep the economy functioning.
Fuel security is therefore not just about preparing for future disruptions. It is about creating the conditions that allow businesses to invest, supply chains to operate efficiently and freight operators to continue delivering the services on which Australian communities and industries depend.
For the transport industry, the equation is simple. Stronger fuel security supports stronger supply chains. Stronger supply chains support greater productivity. And greater productivity ultimately strengthens Australia’s economic competitiveness.
- Peter Anderson is the CEO of the Victorian Transport Association.
Extracted in full from: https://bigrigs.com.au/2026/10/22/stronger-fuel-security-stronger-supply-chains/
