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Media Release: Fuel Relief Welcome, But Diesel Access Remains Critical for Drilling Sector

1 April, 2026

The Australian Drilling Industry Association (ADIA) has welcomed the Federal Government’s decision to temporarily halve the fuel excise, describing it as a timely measure to ease cost pressures across Australia’s drilling sector. However, the Association has cautioned that fuel price relief alone will not address the broader challenges facing drilling contractors, particularly around diesel access, supply reliability, and operational certainty in regional and remote areas.

ADIA Chief Executive Officer Jeff Miller said the announcement provides short-term relief for contractors operating in the most fuel-dependent parts of the economy.

“Diesel is a fundamental input for drilling operations. Whether it’s exploration, water bores, geotechnical or mine services drilling, fuel costs directly impact project viability and day-to-day operations,” Mr Miller said.

“The reduction in fuel excise will help ease immediate cost pressures, particularly for contractors working across large distances and in remote regions.”

The Federal Government’s measures, introduced in response to ongoing global fuel supply disruptions, are expected to reduce fuel prices by more than 25 cents per litre for the next three months. While ADIA supports the intent of the policy, Mr Miller said the focus must now shift to ensuring equitable access to fuel across the supply chain. There are reports of fuel running out or in critically low supply in small communities across regional and rural communities. These communities often rely on independent distributors to supply fuel.

ADIA also acknowledged the introduction of the National Fuel Security Plan, which provides a coordinated framework for managing fuel supply disruptions across Commonwealth, state and territory governments. Mr Miller said the plan represents an important step toward improving transparency and coordination but emphasised the need for ongoing industry engagement.

“Drilling contractors are often operating at the front end of project delivery, in exploration programs and early-stage works,” he said. “If fuel availability becomes uncertain, it has a cascading impact across the entire project pipeline.”

The Association is calling for continued collaboration between government, fuel suppliers, and industry to ensure that critical sectors such as drilling are prioritised in any future supply constraints. “Maintaining consistent diesel supply is essential to keeping Australia’s exploration and resource development pipeline moving,” Mr Miller said.

“This is not just about cost relief. It’s about ensuring operational continuity and supporting the contractors who underpin activity across mining, infrastructure, water and energy projects.”

ADIA will continue to engage with government and industry stakeholders to represent the interests of drilling contractors and ensure that policy responses reflect on-the-ground realities.

About the Australian Drilling Industry

The drilling industry in Australia generates nearly $4 billion in annual revenues and contributes approximately $2.2 billion to annual Gross Domestic Product. Drill contractors employ more than 12,000 Australians, supporting regional communities across the country. Each year the drilling industry unlocks nearly $500 billion of economic activity across mining, water supply and construction.

ADIA promotes four pillars for sustained drilling industry success:

  • Reliable and Skilled Workforces
  • Business Confidence
  • Responsible Sustainability
  • Industry-led Regulation

Further details are available by contacting ADIA and in the Association’s inaugural Economic Impact of Drilling in Australia Report.