Fuel Quality Fears Grow as Crisis Deepens for NSW Freight Industry

Peak industry bodies are warning that poor-quality fuel entering Australia has the potential to damage trucks, increase operating costs and further disrupt critical supply chains.

 

Road Freight NSW (RFNSW), alongside the Refrigerated Warehouse and Transport Association of Australia (RWTA), Bus Industry Confederation (BIC), Waste Contractors and Recyclers Association of NSW (WCRA), International Freight Forwarders and Customs Brokers Association of Australia (IFCBAA) and Fuel and Infrastructure Management Australasia (FIMA), say the shift to alternative and emergency fuel sources is introducing new risks for operators across NSW.

 

RFNSW Chief Executive Officer Simon O’Hara, said as the fuel crisis escalates, the issue is no longer just price and supply - it is also quality.

 

“Industry is increasingly concerned about the variability in fuel entering the Australian market, particularly as supply expands beyond traditional sources,” Mr O’Hara said.

 

Emergency fuel imports may include supply from countries where diesel specifications differ from Australia’s standard of less than 10ppm sulphur. Higher sulphur fuels and inconsistent composition can create serious compatibility issues for modern heavy vehicles.

 

“Even small changes in fuel quality can lead to engine damage, blocked filters, reduced performance and ultimately trucks being taken off the road,” Mr O’Hara said.

 

The International Freight Forwarders and Customs Brokers Association of Australia (IFCBAA) reinforced the need to maintain strict standards.

 

“It is imperative that strict, standards-based monitoring of emergency fuel imports into Australia is maintained during this crisis,” IFCBAA Chief Executive Officer Scott Carson said.

 

“IFCBAA has many business members that operate their own transport fleets and rely on diesel fuel every day.

 

“Both fuel supply reliability and quality are equally critical as our members continue to service the domestic components of Australia’s international trade movements.”

 

The Refrigerated Warehouse and Transport Association (RWTA) said fuel consistency is critical to maintaining Australia’s cold chain.

 

“For the cold chain, fuel reliability is essential to maintaining refrigeration across transport and storage,” RWTA Executive Officer Marianne Kintzel said.

 

“Any variability increases the risk of equipment failure, temperature breaches and food loss. Regulators must ensure all fuel entering the market meets required performance standards and is appropriately verified.

 

“Confidence in fuel quality is essential to keeping this critical service operating safely and without disruption.”

 

Freight operators are already reporting that the issue is causing concern on the ground.

 

“They’re being forced to fill up without knowing exactly what they’re getting,” Mr O’Hara said.

 

Ann Lopez of Lopez Bros Transport, a 100 year old Sydney Port carrier said “Our trucks are our livelihood. If the fuel isn’t right and something goes wrong, the cost of repairs and downtime can be devastating, especially when margins are already so tight.”

 

RFNSW, RWTA, BIC, WCRA, IFCBAA and FIMA are calling on governments and regulators to prioritise fuel quality assurance as part of the national response, including stronger monitoring and clearer standards for emergency fuel imports.

 

The organisations also urged operators to take a more proactive approach to fuel management as risks increase, including regular testing, monitoring for water contamination and ensuring storage systems are properly maintained.

 

Simple checks - such as ensuring fuel is clear and free from haze, testing for water and microbial growth, and undertaking periodic laboratory analysis - can help identify issues early and prevent costly damage.

 

RFNSW warned that poor storage practices, including mixing fuels from different sources or allowing moisture into tanks, can accelerate degradation and increase the risk of engine issues.

 

“Our freight operators are already under immense pressure. The introduction of inconsistent or substandard fuel risks compounding that burden and undermining the reliability of the entire freight network,” Mr O’Hara said.

 

“This is about protecting engines, protecting businesses and keeping goods moving across NSW.”