National fuel supply at risk due to AdBlue shortage, Australian defence expert warns

John Blackburn, former deputy chief of the Royal Australian air force and an expert on fuel security, said the vast majority of petrol and diesel in Australia is carried by trucks, rather than trains or coastal shipping tankers.

AdBlue is required for most modern diesel engines to suppress emissions, but there are shortages because its key ingredient, urea, which is also used as a fertiliser, is running dangerously low after China restricted exports of the product. The shortage is also due to the price of gas, the main feedstock for urea.

The National Road Transport Association (NatRoad) says almost all fuel in Australia is transported by large road tankers.

A spokesperson for the association said it was more than likely that all of these fuel trucks would be part of the 1.5m trucks affected by the AdBlue shortage.

As of January this year, there were 20.1m registered motor vehicles of which 15.6% (4.1m) were trucks. Diesel vehicles make up 26.4% of all vehicles, up from 20.9% in 2016 and almost all modern diesel engines (those made in the past 10 years) use AdBlue.

The NatRoad spokesman said the shortage was hitting hardest and first in the bush.

Taylor said the government was working closely with industry to ensure a sustainable, ongoing supply of the diesel exhaust fluid, including international supply options for refined urea, bolstering local manufacturing capabilities and technical options for vehicles.

It is understood there are seven weeks of AdBlue and refined urea supplies secured. In figures released on Wednesday, the latest October petroleum statistics show Australia held 98 days, including stocks coming to Australia, compared with an average of 81 days of stock in 2020.

Suppliers are already rationing AdBlue as the peak body for the transport industry, Trucking Industry Council, warned against tampering with the emissions systems, given all modern trucks are required to meet Australian Design Rule (ADR) requirements by law.

It is just one of the shortages the agricultural industry have faced this year, which has included timber pallets, fertiliser, chemicals, shipping containers and workers.

Bev Andrews, the director of National Logistics, a small trucking operation based out of Victoria, was told by her supplier last week that there was a shortage.

She said with the Christmas rush to deliver goods, the shortage comes at an especially bad time, but that she is more concerned about what it means in terms of the long-term viability of her business.

Andrews has a 5,000 litre tank full of AdBlue at the moment that will see the 20 trucks she operates through until the end of December, but her current supplier had expressed uncertainty about securing future shipments.

She says the price for available AdBlue had skyrocketed from 45c a litre to $2.20 a litre in the space of a week.