Both demand and prices for an important product in Australia have risen, which is expected to result in rising costs on everyday items.
An essential product shortage feared in Australia smoothed out by the federal government last week, but not everyone is convinced that things will turn out well.
The world is currently facing a shortage of urea, a major component found in AdBlue, which is injected into the exhaust systems of modern diesel vehicles to reduce emissions, and is also a major component in fertilizers. Is.
The transportation and agriculture industries warn that without it, trucks may be unable to deliver essential items such as fresh food to supermarkets.
A Gold Coast mechanic has taken to TikTok to share his experience with his 55,000 followers.
“The cost of food is going to go up, the cost of maintenance is going to go up,” predicted Steve Motiv of Motive Mechanical.
“I just got an email from Penwright and they said that the price of urea has gone up 150 percent in the past two weeks and that oil – wholesale and retail – prices are rising.
“If we don’t get another urea supplier it’s going to grow rapidly.”
China, which previously supplied 80 percent of Australia’s urea supply, recently halted exports to boost supplies domestically.
Australian urea maker Inktech Pivot announced last month that it would shut down its manufacturing operations at its main urea plant in Brisbane’s Gibson Island by the end of next year.
The company, which supplies about 10 percent of the Australian market for AdBlue, said it was unable to secure long-term, cheap gas supplies.
“The remaining 90 percent of the Australian AdW market is dependent on imports of technical grade urea,” IncyTech Pivot said in a statement on Friday.
“We are fully committed to meeting the requirements of our domestic customers and are currently investigating ways we can increase the manufacturing capacity of the urea used to build the AdBlue solution over the next few months. “
Chemical and biomolecular engineering expert Professor Jun Huang told news.com.au that it was in Australia’s best interest to invest recently manufacturing of green urea on their own shores.
He added that current processes used to produce urea, such as those in China and Indonesia, rely on fossil fuels, which is untenable given expectations of reducing emissions and meeting climate targets.
The government said last week it currently had more than 15 million liters of AdBlue on hand, the equivalent of about five weeks of business-as-usual demand, and a shipment of refined urea on its way to Australia to provide an additional two weeks of supply .
Both Supercheap Auto and Autobarn have reported low stock of AdBlue.
SRH Milk Haulage, which delivers bulk milk from farmers to factories, reported its NSW depots running out of AdBlue supplies and had to send trucks to service stations.
“If service stations start running low, which I’m going to guess based on who they’ll get their supply from in the not-too-distant future, it creates market uncertainty,” Chief Financial Officer Ben Nix said. Daily Mail.
“Hence, everyone is raising their prices. You don’t know what’s going on.”
Prior to the government’s announcement of Australia’s shares, the Australian Trucking Association said they were already looking at suppliers to “restrict orders or raise prices”.
Industry, Energy and Emissions Reduction Minister Angus Taylor, who is overseeing the issue, urged the industry not to buy additional stock, terming it “unnecessary and unusable”.