Grain Producers SA (GPSA) has welcomed the Federal Government’s decision to temporarily reduce the Minimum Stockholding Obligation for petrol and diesel, allowing additional fuel supplies to flow to regions experiencing shortages.

The announcement follows comments made by GPSA Chief Executive Officer Brad Perry on ABC Adelaide’s Mornings radio program this week highlighting the need to use Australia’s fuel reserves to ease pressure on regional supply.

“You’d think we could use the (fuel) reserves, address the supply problem and top up the reserve when the shipments come in,” GPSA CEO Brad Perry, ABC Adelaide radio, 12/3/26

Mr Perry said the Government’s decision is the first step in recognising the challenges grain producers were currently facing in accessing diesel to undertake weed spraying and prepare for seeding.

“This is a positive move by the Federal Government that acknowledges the fuel supply pressures being experienced more acutely in regional areas where our grain producers are growing food to feed the world,” he said.

“We have been hearing from grain producers who are preparing for spraying and seeding but are being told diesel deliveries may be reduced, restricted or delayed as suppliers struggle to access fuel through the wholesale market.”

The Federal Government has indicated the temporary change will allow companies to release up to 762 million litres of petrol and diesel from Australia’s domestic reserves, with supply prioritised for regional communities and industries experiencing shortages.

GPSA will also attend an industry roundtable on fuel security being held by the Department for Energy and Mining on Monday providing feedback on supplies from grain producers across South Australia.

“Diesel is the lifeblood of today’s grain production, without it everything grinds to a halt,” Mr Perry said.

“Tractors, sprayers, seeders and trucks all rely on diesel to operate, and with seeding approaching it is essential that grain producers can access reliable fuel supplies.”

Mr Perry said the release of additional diesel supplies would help ease pressure in regional fuel markets where many distributors rely on the wholesale spot market.

“Regional communities are often the first to feel supply disruptions because independent distributors can struggle to access fuel when markets tighten,” he said.

“Measures like this can help stabilise supply and provide confidence to growers heading into one of the most critical operational periods of the year.”

Mr Perry said GPSA would continue working with the National Farmers’ Federation and Federal and State Governments to monitor the situation and ensure fuel was reaching regional communities where it was most needed.

“Grain producers simply need certainty that diesel will be available when they need it so they can get crops in the ground and keep Australia’s food and export supply chains moving,” he said.