Fortnightly ALC Government Relations Update No.10 29 May to 11 June 2026 

The Australian Government has made a second temporary fuel security instrument to support diesel and petrol supply in regional areas.

The Fuel Security (Temporary Reduction – Securing Regional Supply) Instrument (No. 2) 2026 reduces minimum stockholding obligations for diesel and gasoline by 20% from 1 July to 30 September 2026. Kerosene is not included. The purpose is to release additional diesel and petrol into the market for regional, agricultural and maritime customers facing, or likely to face, shortages. 

This follows the first temporary reduction, which ends on 30 June 2026. The Government has linked the extension to continued disruption in global fuel markets arising from conflict in the Middle East. The explanatory statement notes that the Strait of Hormuz remains effectively closed, shipping volumes are well below pre-conflict levels, and market stabilisation is expected to take several months even if the Strait reopens. 

The reduction is not automatic. Fuel companies must submit a written plan setting out how they will support supply to regional, agricultural, and maritime customers, work with governments, supply distributors serving regional areas, and respond to unexpected demand surges. The requirement to address demand spikes is new and aims to manage risks such as panic buying or localised demand exceeding normal supply patterns. 

Companies that submitted a plan under the first instrument must submit a new plan. They must explain whether the first plan was effective, how it could be improved if it was not, and provide supporting evidence. The Government has made clear that simply resubmitting the earlier plan may not meet the requirements of the new instrument. 

The measure gives industry flexibility while maintaining a baseline stockholding requirement. Companies covered by the instrument must still hold 80% of their usual diesel and petrol stockholding obligations during the reduction period and continue reporting weekly. The reduction applies only once the Secretary gives written notice to the entity and ends on 30 September 2026. 

For ALC members, the instrument confirms that fuel security remains an active operational issue, not just a stockholding issue. The release of additional fuel into the market will only assist regional supply if the distribution network can move it where it is needed. Terminal access, road and rail freight capacity, regional distributors, driver availability, wholesale market access and local demand behaviour will all affect whether the measure works in practice.

ALC will continue to monitor the implementation of the instrument, particularly its impact on regional supply, diesel availability, pricing, pass-through arrangements and the freight transport and logistics operators required to keep fuel and essential goods moving.

The Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts has provided further detail at Senate Estimates on the Australian Government’s decision to consolidate Inland Rail delivery between Beveridge and Parkes.

Works north of Parkes will focus on corridor preservation and protecting future terminal options in Queensland, rather than progressing full construction at this stage.

The Department advised that ACIL Allen’s verification and assurance work put the full Inland Rail project cost at $45.6 billion, with officials noting this was likely a lower-bound estimate. The hearing also confirmed an unfunded component of around $30 billion, with major cost, approval and delivery risks still attached to sections north of Parkes.

Officials said completing the Beveridge to Parkes section would still deliver useful freight capability, including improved access west to Perth, double-stacked train operations from Melbourne to Perth, and better access to the Hunter Valley. The Government’s position is that this approach preserves the option of future delivery while directing current funding to parts of the network with clearer freight benefits.

The hearing also pointed to pressure on the existing ARTC network, including repeated weather-related closures, a 14-day closure of the east-west route in January 2026, and a 17-day closure of the Broken Hill corridor in March 2026. The Department said industry had identified the existing network as a priority, including reliability on the east-west corridor, capacity on the north-south corridor, loop extensions, re-railing, ballast renewal, signalling upgrades and other resilience works.

The NSW Parliament has debated the ongoing closure of the Great Western Highway at Victoria Pass, a key corridor linking Sydney, the Blue Mountains, the Central West and wider regional NSW. Members raised the impact on freight operators, small businesses, tourism, commuters, schools, emergency services and regional communities, with heavy vehicles facing longer detours and local roads carrying traffic they were not designed to handle.

The NSW Government advised that Transport for NSW closed the eastbound lane on 5 March after a defect was identified, and that further cracking was later detected in the westbound lane. A taskforce has been established and $50 million has been committed to improve key detour routes, including the Darling Causeway, Chifley Road and Main Street in Lithgow. Parliament was told that more than 85,000 square metres and 24,000 tonnes of asphalt had been laid, with more than 102 kilometres of line-marking completed. A further $3.5 million support package has been announced for affected small businesses and councils.

Transport for NSW has shortlisted two engineering consortia, led by Seymour Whyte and Gamuda, to develop repair options, with both proposals being assessed in parallel. 

For ALC members, the closure is a clear reminder that regional road resilience is freight transport and logistics resilience. When a major corridor fails, the impact moves quickly through supply chains, local economies and emergency access. It also strengthens the case for long-term planning on nationally significant freight routes, particularly where detours push sustained heavy vehicle traffic onto roads not built for that task.

The ACCC’s June 2026 Infrastructure Consultative Committee Bulletin provides an update on recent regulatory activity across fuel, telecommunications, energy, airlines and airports. Of most direct interest to ALC members, the ACCC has increased monitoring and reporting on petrol and diesel prices during the current Middle East conflict, including weekly reporting across major cities and 190 regional locations. The ACCC is also tracking whether the Commonwealth’s temporary fuel excise cut is being passed through to consumers.

The bulletin also points to wider cost and capacity pressures across infrastructure markets. The ACCC’s March 2026 Gas Inquiry report found east coast gas supply is expected to be tight, with large volumes likely to be needed from storage in the third quarter of 2026. The ACCC’s domestic airline competition report also noted significant disruption to international aviation from developments in the Middle East, including flight cancellations and changes to established travel patterns.

For ALC members, the bulletin reinforces the pressure points already being felt across freight and logistics: fuel price volatility, energy market tightness, aviation disruption and the need for transparent infrastructure regulation. These issues flow directly into operating costs, service reliability and supply chain planning. The ACCC has also invited Infrastructure Consultative Committee members to express interest in an in-person meeting in Brisbane on 5 August 2026, ahead of the ACCC and AER Regulatory Conference.

The Victorian Government has approved Ports Victoria’s wharfage and channel fees from 1 July 2026. The order covers wharfage fees for cargo loaded or discharged in Ports Victoria-managed areas within the Port of Melbourne, and channel fees for vessels using the Port of Geelong and Port of Hastings.

For the Port of Melbourne, approved wharfage fees include $127.45 per TEU for full outward containers, $164.86 per TEU for full inward containers, $102.98 per TEU for full Bass Strait containers and $24.55 per TEU for empty containers, all GST inclusive. The schedule also sets fees for non-containerised cargo, motor vehicles, liquid bulk, dry bulk and transhipment cargo.

For ALC members, this is a direct update on port costs. The approved channel fees are $0.5658 per gross tonne for Geelong and $0.6723 per gross tonne for Hastings, GST inclusive. These charges should be factored into vessel, cargo and landside supply chain cost planning from 1 July 2026.