Fuel Security Push Brings Focus To Hinchinbrook As Taroom Trough Develops

Fuel security concerns are sharpening across North Queensland, with the proposed development of the Taroom Trough oil field placing renewed focus on how regional communities like Hinchinbrook will be impacted.

The Queensland Government has announced plans to unlock the Taroom Trough, the first new oil field in Australia in 50 years, as part of a broader strategy to strengthen domestic fuel supply. While the project is still developing, the issue of fuel availability is already being felt locally, particularly across agriculture and essential services.

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KAP Federal Member for Kennedy Bob Katter has warned the situation is becoming critical for the sugar industry, a key economic driver in the Hinchinbrook region.

“Sugar is a multi-billion-dollar export industry underpinning regional Australia, and it is now under threat,” said Mr Katter. “Australia’s sugar industry requires around 100 million litres of diesel this season. Right now, farmers can’t get it or can’t afford it.”

Mr Katter said diesel prices have surged from $1.70 per litre in early March to nearly $3 per litre by April, significantly increasing production costs. At the same time, supply delays of up to two weeks are being reported.

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“This is pure idiocy that in a country so rich in resources, our farmers are lining up like we’re some sort of developing nation,” he said.

With production costs now exceeding returns, he warned the 2026 sugar harvest is at serious risk.

“This is simply unsustainable and it’s catastrophic for our sugar guys,” said Mr Katter.

“Every tonne harvested is a loss. Every farmer is going to go backwards.”

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Closer to home, Hinchinbrook Shire Council Mayor Ramon Jayo said the region faces unique vulnerabilities due to its reliance on external fuel supply chains.

“Locally, our key pressure points are our reliance on fuel supplies through Townsville, limited on-site storage capacity, and the vulnerability that comes with weekly fuel allocations rather than on-demand delivery,” he said.

“Any disruption whether from national rationing decisions, global instability, or severe weather events could quickly affect businesses, essential services and disaster readiness. While conditions are currently stable, the margin for disruption is small.”

Mayor Jayo said council is working closely with neighbouring councils, the Local Government Association of Queensland, and state and federal governments to ensure regional concerns are understood.

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“Through Townsville Enterprise Limited, we are also advocating on behalf of local businesses and industries, sharing real-time insights from industry to support better coordination, informed decision-making, and appropriate assistance where it is needed most.”

He acknowledged the growing cost-of-living pressures being felt across the community, driven largely by global factors.

“There’s no doubt cost-of-living pressures are being felt across our community, and it’s important to acknowledge that many of these pressures are being driven by factors well beyond our region including global conflicts, supply chain disruptions and inflationary forces.

“At the local level, Council’s priority is to plan responsibly so essential services continue to operate and shocks are managed calmly, not reactively.”

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Mayor Jayo said planning is already underway to ensure essential services can continue in the event of fuel shortages.

“Council has responded by progressing our Business Continuity Plan, prioritising fuel use for critical services like water, sewerage, waste, regulatory services and disaster response.”

As debate continues around the Taroom Trough and Australia’s fuel future, local leaders say preparation and clear communication will be key to protecting regional communities like Hinchinbrook from further disruption.

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Stock image from: https://pixabay.com/photos/gas-station-gas-pump-refuel-diesel-4978824/