South Australia will establish a new emergency diesel reserve sourced from Singapore, with the state government committing $40 million to bolster fuel security amid global instability linked to the Iran war. The plan will add 10 to 20 million litres of diesel to the state’s stockpile the equivalent of roughly four extra days of supply based on current consumption.
The reserve will be stored at bulk fuel supplier IOR’s facility at Port Bonython, near Whyalla in the Upper Spencer Gulf. The government, which had previously dismissed state‑based fuel strategies, now says the move is essential to provide certainty for the agricultural sector.
Grain Producers SA welcomed the announcement, saying it offers much‑needed reassurance to primary producers facing volatile global markets. “With the uncertainty of the ongoing war, what’s going to happen with fuel and fertiliser supply in the long term is relatively unknown, so South Australia needs to be doing everything we can to keep farmers farming,” CEO Brad Perry said.
Freeling grain and hay producer Corbin Schuster, currently in the middle of seeding, said recent spikes in fuel prices had shocked the sector. Farmers, he noted, are increasingly vulnerable to global supply disruptions that ripple quickly through local operations.
The government says the reserve is designed to shield South Australia’s agricultural backbone from sudden shortages, ensuring producers can continue operating even if international supply chains falter.
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