Deal Supports Fuel Supply Stability
Road Freight NSW (RFNSW) has voiced its support for the Australian Government’s new energy security partnership with Japan. Announced by Foreign Minister Penny Wong, the agreement aims to bolster fuel supply stability between the two nations. This partnership focuses on enhancing cooperation on energy security to ensure a more stable and diversified fuel supply for Australia.
Simon O’Hara, CEO of RFNSW, emphasised the significance of the deal by stating, “Energy security is freight security.” Collaborating with Japan, a key energy partner, is vital for reducing supply risks in the global market.
Benefits for the Road Freight Sector
The agreement is anticipated to improve fuel quality, as Japan’s reserves meet higher standards than some alternatives. O’Hara highlighted the operational benefits, stating, “Fuel quality matters. Higher quality diesel reduces the risk of engine damage, improves performance, and helps operators avoid unnecessary maintenance costs.”
In recent years, global fuel disruptions have exposed vulnerabilities in Australia’s supply chains, particularly in industries that rely on consistent, real-time delivery. O’Hara pointed out, “The road freight sector operates in real time. When fuel supply is disrupted, the impacts are immediate across the economy.”
RFNSW suggests that the agreement should form part of a broader national focus on fuel resilience. This includes secure supply, consistent quality, and policy settings that ensure costs are fairly distributed. “If we want to keep Australia moving, we need a system that backs in the businesses doing the heavy lifting every day,” O’Hara stated.
The partnership with Japan could also deliver quality benefits for the industry. Japan, which has about 214 days’ worth of oil reserves, typically provides fuel that meets higher and more consistent standards than some alternative sources. This contributes to reducing the risk of engine damage and improving overall performance.
RFNSW, established in 1893, is the peak industry organisation for the road and freight industry in NSW. It engages in advocacy, government, and media relations on behalf of its members. The organisation views the agreement as a strong step in the right direction and encourages further development on this foundation.
