Why Chris’ fuel bill has jumped $1100 a tank

Last month truck driver Chris Gibbs paid about $1500 each time for a full tank of diesel. On Monday, he paid more than $2600.

Gibbs, who owns five trucks in the Upper Hunter region of NSW, said this meant his customers had to absorb some of the extra costs and pay up to 25 per cent more for his services.

NSW Premier Chris Minns has resisted implementing fuel rationing or urging employees to work from home, arguing current supply levels are not dire enough to warrant the economic impact. For truckies like Gibbs, the price hike is evidence enough that something has to give.

“There’s going to be plenty of businesses getting to the point where they have to close down,” Gibbs said. “I’ve got friends who are just going to park their trucks up, especially when people have got contracted work and can’t vary the prices – they don’t have a choice [except] to absorb the cost of fuel. A lot of them are working for very little.”

Gibbs said recent geopolitical conflicts which have led to petrol bowsers going dry and skyrocketing fuel prices meant the “future was grim” for the trucking industry. He also added that the unpredictability of fuel prices compounded difficulties for drivers, who often already face lengthy waits to be paid for contract work.

“It wasn’t uncommon to use $8000 worth of fuel in one [trip]. It’s insane because you spend that money, then you invoice your work, and you wait another 30 days to get paid. But from the moment from the time you do the work to when you get paid, the price of fuel may have doubled,” he said.

At 5pm on Monday, 131 petrol stations in NSW were without diesel, and 38 were without fuel altogether. Most of them are in the regions.

Greenacre had Greater Sydney’s highest diesel price on Monday, where it was being sold at 314.7¢ a litre compared to a statewide average of 285.5¢ a litre. Brooklyn was selling Sydney’s most expensive unleaded 91, at 299.9¢ a litre, compared to the statewide average of 241.3¢ a litre.

Despite advice from the international energy watchdog suggesting working from home could be a way to reduce demand, Minns said the majority of public sector workers are critical, public-facing jobs like nurses, teachers and police officers who cannot avoid travelling to their workplaces.

A more general suggestion for non-public sector workers to work from home if possible could be on the cards, Minns said. The government wrote to the major fuel companies on Friday to ask for information including supply and order forecasts, which will play a role in guiding how the state responds.

The premier can give his energy minister, Penny Sharpe, the power to direct fuel companies to ration fuel and to sell their supplies to particular areas that need it most – but only if Minns makes a declaration of an energy supply emergency.

“We will, of course, take emergency measures if required, but those measures themselves have an impact on the economy and businesses in NSW, and we want to make sure we only do it when we absolutely have to,” Minns said.

The government is particularly worried about independent petrol stations that are struggling to secure supply, with the major retailer contracts prioritised.

“That’s an area we’re looking at very closely, and have been looking very closely over the weekend, and we want it fixed in the next couple of days with some of the big fuel suppliers, the big guys, when it comes to fuel supplies,” Minns said.

“For demand management processes from there, we’re going to have to take it step by step, and that may mean further remedial action in the weeks ahead, depending on what happens in the Middle East.”

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