We are the voice for change for the Australian sugar manufacturing sector

As we move into day 83 of the ongoing conflict in the Persian Gulf, the Australian Sugar Manufacturers (ASM) hopes that the Federal Government is moving closer to concrete solutions for the use of Australian ethanol to underpin our liquid fuel security and put downward pressure on petrol prices.

“We are now into day 83 of the conflict in the Persian Gulf with no end in sight, and our response to fuel security needs to move from one of crisis management to developing our ongoing processes to guarantee security in this new normal.”

Australia’s fuel security response needs to move past crisis management
“The Federal Government has done a good job in managing fuel supply chain disruptions through a once-in-a-generation crisis,” said Mr. Ash Salardini, CEO of the Australian Sugar Manufacturers.

Ethanol a solution for the here and now
“Ethanol can supply 3% of the petrol market today, not in three-years but today.”
“There is 200 million litres of ethanol that could be used for fuel that remains unused, with more than 100 million litres a year being exported because fuel suppliers in this country simply don’t use it.”

Australian Sugar Manufacturers (ASM) has welcomed the commencement of the 2026 sugarcane crushing season, with the industry forecast to crush approximately 30 million tonnes of sugarcane across Queensland and northern New South Wales this year.

The annual crushing season officially begins in late May and early June 2026, with mills progressively commencing operation across the state. Current industry estimates indicate that Queensland mills are expected to crush approximately 28.7 million tonnes of cane, contributing to a national forecast of more than 30 million tonnes.

“This year, the industry is expected to crush around 30 million tonnes of sugarcane, highlighting the scale and importance of the sugar manufacturing sector to regional Queensland, advanced manufacturing and export supply chains”, said Australian Sugar Manufacturers Industry Spokesperson, Josip Vidakovic

Australian Sugar Manufacturers (ASM) today fully supports the strengthening of the Queensland ethanol mandate, and welcomes the following bill presented and notes bipartisan support for the strengthening of biofuels across regional Queensland from Members of Parliament in sugar seats, including members of the Queensland Primary Industries and Resources Committee.

We are currently in the middle of a fuel affordability crisis. Prices for petrol were around $1.50 before the Iranian war, they are now closer to $1.80, and when the fuel excise discount runs out on 1 July 2026, we will be back to over $2 a litre.

In 2 -3 months’ time, we may be in a fuel availability crisis, and the economic damage of this for Australia will be immeasurable.

While the war in the Persian Gulf is well into its third month, and global oil supplies continue to be severely restricted, the Australian Government has yet to provide certainty on utilising ethanol to secure our petrol supplies, with domestic ethanol production providing the equivalent of 10 days of petrol supply nationally.

“It is disappointing that three months into a once-in-a-generation fuel crisis, the Australian Government has yet to act on an ethanol mandate, one of the only domestic supply options available to it – not in three years or six months, but today”

“While the Federal Budget talks of addressing future fuel shocks, we as a country have yet to adequately deal with the current fuel crisis.”

Ethanol is more than cost competitive with regular unleaded fuel, yet more than half of the potential 400 million litres capacity is being used for non-fuel purposes, including more than a hundred million litres of ethanol being exported.

As the war in the Persian Gulf grinds on, Australia has yet to tap into a resource that can provide up to 10 days of petrol supply across the nation.

Australian Sugar Manufacturers (ASM) is calling on the Federal Government to use the Budget to introduce a national ethanol mandate that would strengthen Australia’s fuel security, support regional manufacturing jobs and unlock billions in new investment across the agricultural and biofuels sectors.

ASM CEO, Ash Salardini said Australia could no longer afford to lag behind global competitors on renewable liquid fuel policy.

“A national ethanol mandate is one of the most practical and immediate actions the Government can take to improve Australia’s fuel security. The industry can produce up to 400 million litres of ethanol per year, securing around 10 days of national petrol supply,” Mr Salardini said.

For the first time, four of Australia’s most influential agricultural bodies – the National Farmers’ Federation, GrainGrowers, Australian Sugar Manufacturers and CANEGROWERS – have joined forces to urge the Australian Government to introduce an immediate national mandate for ethanol and biodiesel to bolster fuel security, support regional jobs and unlock new value-adding opportunities for Australian agriculture.

Together, the four bodies speak for more than 150,000 Australian farming businesses and over 21sugar manufacturing facilities- spanning grain, oilseed, pulse and cane growers as well as sugar manufacturers- representing a nationally significant cross-section of Australia’s farming and regional manufacturing base and contributing billions of dollars to regional economies.

The agricultural and manufacturing industry bodies warn the current fuel crisis has exposed the strategic vulnerability created by Australia’s over-reliance on imported fuel, and the failure to fully utilise Australian-made ethanol and biodiesel as practical, domestic fuel security solutions. They emphasise that domestically produced biofuels offer a practical, immediate pathway to reduce reliance on imported fuel while delivering economic benefits across rural and regional Australia.

Today, the Australian Sugar Manufacturers (ASM) welcomed the Crisafulli Government’s Queensland Fuel Security Plan that aims to increase fuel refining and production capacity in Queensland.

“A central, cross-agency and coordinated fuel security plan is exactly what the doctor ordered, and sugar manufacturers commend the Crisafulli Government for taking a holistic approach to this fuel crisis,” said Mr. Ash Salardini, CEO of the Australian Sugar Manufacturers.

Ethanol must be central to Queensland fuel security future, with the ability to provide solutions for securing fuel security in the short and long term.

“We can make 400 million litres of ethanol today in this country – that is an equivalent of 10 additional days of petrol for Australia. Not in five years, not in twelve months, but today.”

Australian Sugar Manufacturers (ASM) is calling on the Queensland Government to take immediate and decisive action to unlock the full potential of ethanol, warning that without stronger policy settings Queensland risks falling behind in fuel security, regional development and emissions reductions.

ASM Chief Executive Officer, Ash Salardini said the Queensland sugar industry is ready to play a central role in strengthening the state’s fuel resilience, but requires clear and ambitious government leadership to do so.
“The Crisafulli Government is uniquely positioned to lead the nation in ethanol production. Unfortunately, policy ambition from the government does not match the scale of opportunity in front of us.”

“The Queensland Government’s recent announcement regarding exploration activity in the Taroom Trough is a positive signal that regional industry and energy security remain important priorities. However, it must be part of a broader, coordinated energy strategy that includes utilisation of existing ethanol capacity, and spurs investment in new expanded capacity in the long-term”.

Australian Sugar Manufacturers have identified that ethanol represents an immediate, scalable and locally produced solution to one of Australia’s most pressing strategic vulnerabilities – its reliance on imported liquid fuels.