Diesel shortages threaten farming across continents amid Iran conflict

Saturday 14 March 2026 - 10:50

By: Dakir Madiha

Diesel shortages threaten farming across continents amid Iran conflict

A growing diesel shortage triggered by disruptions to global energy supplies is threatening agricultural activity across multiple continents, raising concerns about rising food prices in the months ahead. Two weeks after the start of the US Israeli conflict involving Iran, the effective closure of the Strait of Hormuz has disrupted shipments of crude oil, liquefied natural gas, and fertilizer, creating fuel shortages that are beginning to affect farming operations from Asia to Europe and Australia.

Farmers in several regions are already experiencing fuel delivery cuts. Grain producers in Australia report reduced diesel shipments ahead of the upcoming planting season. In Bangladesh, rice farmers say they cannot obtain enough fuel to power irrigation pumps. In the Philippines, fishermen warn they may soon be forced to keep their boats docked because of rising diesel prices.

Richard Heady, a farmer in Buckinghamshire in the United Kingdom, said agricultural machinery consumes large quantities of diesel during planting periods. He warned that by mid spring many farms could exhaust their available fuel and be forced to buy diesel at much higher market prices, if supplies remain available.

The crisis is particularly severe in Bangladesh, where the government has imposed strict fuel rationing. Diesel sales have been limited to two liters per person per day. Farmer Harprosad Roy in Rangpur said his 0.8 hectare plot requires at least three liters daily for irrigation, but he often returns from fuel stations with only one liter.

Nearly 40 percent of Bangladesh’s arable land relies on diesel powered irrigation. With the critical Boro rice harvest beginning in April, shortages threaten the country’s largest rice crop. Authorities have introduced emergency measures including fuel rationing, university closures, and attempts to secure additional diesel supplies from China and India. Severe gas shortages have already forced the shutdown of four of the country’s five state run fertilizer plants.

In the Philippines, rising fuel costs are cutting into the incomes of fishermen. Jayson Cainglet, head of the farmer group SINAG, told a Senate hearing on March 12 that fishermen are losing roughly 500 pesos per day because of higher diesel prices. The country has experienced its largest weekly fuel price increase on record. President Ferdinand Marcos Jr said the government is seeking alternative oil suppliers beyond the Middle East, which currently provides about 98 percent of Philippine crude imports.

Australia has begun drawing from its strategic fuel reserves in response to the crisis. Energy Minister Chris Bowen announced the release of approximately six days of gasoline reserves and five days of diesel supplies. It is the first such release since Russia’s invasion of Ukraine in 2022.

Australia holds roughly 36 days of gasoline reserves and about 32 to 34 days of diesel supplies, well below the 90 day level recommended by the International Energy Agency. In Western Australia, the country’s largest grain producing region, some fuel distributors have delivered smaller volumes than farmers ordered ahead of wheat and barley planting scheduled to begin within a month.

Rhys Turton, a farmer and president of the Grain Growers industry group, said some suppliers are rationing fuel to distribute limited supplies across farming communities. Opposition agriculture spokesperson Lachlan Hunter warned that some farms have already halted operations because of fuel shortages.

The Australian government attributed the situation primarily to a spike in demand rather than disruptions to supply chains, a claim that has drawn criticism. Debate has also emerged over whether farmers storing diesel in advance amounts to hoarding or routine planning. Analysts note that bulk diesel purchases ahead of planting are common because farms can consume thousands of liters during planting and harvest seasons.

The effects of the energy shock are also spreading through Europe. Farmers in the United Kingdom report that the price of agricultural diesel has doubled and delivery delays now reach up to two weeks. German farmers are paying about 30 euros more per 100 liters of fuel, while agricultural diesel prices in Romania have risen by roughly 25 percent.

In the United States, the national average diesel price has exceeded 4.83 dollars per gallon, more than one dollar higher than a month earlier.

Agricultural economists warn that prolonged fuel shortages could push up production costs across global food supply chains. Paul Joules, an agricultural inputs analyst at Rabobank in Sydney, said the disruption may not be temporary. He said rising costs for fuel and other inputs could eventually feed through to consumer food prices worldwide.