The Australian Logistics Council has warned that the effectiveness of any move toward Stage 4 diesel rationalisation will depend on the capability of Australia’s freight and logistics system to deliver fuel where it is needed.
Appearing before a Senate Committee Inquiry into productivity, ALC CEO Dr Hermione Parsons outlined that fuel prioritisation frameworks are only as strong as the distribution networks that underpin them. She told the Committee that the freight transport and logistics sector ultimately determines whether allocation settings can be executed in practice.
The inquiry examined the potential progression to Stage 4 diesel rationalisation and its implications for the national supply chain, with a focus on how fuel would be prioritised across critical industries.
During the hearing, Senator Bridget McKenzie acknowledged the ALC’s Fuel Prioritisation Paper, which positions freight transport and logistics as a necessary enabler of any diesel allocation policy.
Parsons also highlighted the underutilisation of freight rail within Australia’s broader freight task, pointing to its role in supporting system capacity, resilience and fuel efficiency, particularly during periods of constrained diesel supply.
The ALC said it will continue to engage with government and relevant agencies on operational considerations tied to fuel security, including distribution capability and network utilisation.
The appearance comes amid ongoing industry focus on fuel supply pressures and the flow-on impacts for freight operators, as policymakers examine mechanisms to manage diesel availability across the economy.
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