Business · Energy & Commodities · 3 hrs ago
Rising diesel costs threaten Australian farms and food prices
War-related disruption is pushing oil prices higher, raising costs for people and businesses that rely on fuel.
In Queensland, grain grower Brendan Taylor says farms depend on diesel to run tractors, harvesters and trucks during the harvest.
Diesel is also central to Australia’s truck-heavy transport network, which moves goods across the country.
Oil shipments have improved in recent weeks, but uncertainty remains, and experts warn that stockpiles used to ease price rises have been substantially depleted.
Farmers may have to absorb some higher costs, while increased trucking charges could put pressure on supermarket prices.
The sources do not describe a confirmed diesel shortage or say what action will follow.
Rising diesel costs are increasing production expenses for Australian farmers during harvest season in Queensland.
Grain grower Brendan Taylor says farm machinery and transport vehicles depend on diesel, leaving farmers with few ways to avoid higher costs.
Higher diesel prices can also raise transport costs across Australia and potentially contribute to supermarket price increases.
Oil supply disruptions linked to conflict in the Middle East and attacks on Russian refineries have kept prices high.
Two energy experts say available measures to curb demand and increase supply have largely been used.
- Who
- Australian farmers, including Queensland grain growers, are affected. Energy experts Joshua Busby and Greg Pollock warn that oil prices could rise again.
- What
- Higher diesel costs are raising farm and transport expenses and could contribute to higher food prices.
- When
- During Queensland’s harvest season, as reported on October 25, 2026.
- Where
- Queensland and Australia; the reported oil supply disruptions involve the Middle East and Russia.
- Why
- Conflict-related disruptions and uncertainty are affecting oil supplies, while diesel is essential to farm machinery and transport.
This story does not have two clearly opposing sides.
The United States and Israel attacked Iran, which responded by closing a major oil transport corridor and launching missiles at military bases and refinery infrastructure.
Countries released supplies from their stockpiles, helping limit oil price increases.
Joshua Busby and Greg Pollock wrote that most available measures to curb oil demand and boost supply had already been taken.
Oil flows from the Gulf improved, but uncertainty continued to affect shipments and keep prices high.
- Harvest location
- Queensland
- Farm representative
- Brendan Taylor, AgForce Grains president
- Farm fuel
- Harvesters, tractors and trucks run on diesel
- Oil price peak
- Almost US$140 a barrel
- Reported trucking charge increases
- 20 to 30 per cent
What people are saying
diesel makes the world go round
For us to do whatever we do, we rely on diesel, and we can't not use it.
Now, the toolbox is largely empty, leaving prices on the brink of spiking again.