Diesel shortage brings ‘catastrophic’ fuel shortfalls for garbage collectors
Garbage could soon pile up as collection businesses struggle to find diesel amid ongoing shortages and price hikes.   


News.com.au
March 25, 2026

Garbage collection peak bodies say they have been left off priority fuel supply lists, threatening “potentially catastrophic” health and environmental consequences if bins cannot be collected due to a lack of diesel.

In a letter to the federal Energy Minister, Waste Contractors and Recyclers Association of NSW chief Brett Lemin says garbage and recycling trucks and processors are within days of exhausting their cash paying for high diesel prices, and councils will need to slug homeowners to make up the shortfalls.

“If we cannot fuel trucks and we cannot fuel processing equipment, we cannot collect rubbish, we cannot collect recyclables,” Mr Lemin said.

“We are literally the back-end … of pretty much every single industry, every single operation that happens across this country.”

The industry group says they have been left off the list of essential services which get priority access to diesel - the supply of which is constrained due to the war in Iran.   

Private companies with rubbish and recycling contracts for councils, supermarkets and healthcare facilities warn their diesel deliveries are being slashed.

“Not being listed is potentially catastrophic to our entire sector, and it’s going to lead to significant health and environmental issues,” Mr Lemin said.

Queensland Waste Recycling Industry Association chief executive, Alison Price, said drastic steps like only every-other wheelie bin being emptied per cycle could be the outcome.

“I’d just encourage government to think about what might happen if we only collected half the wheelie bins,” she said in a statement.

“I am already aware of multiple members who have not received their full (fuel) allocations, who have received less than half their allocations.


“I think the general public will start to feel some impacts soon, unfortunately,” Ms Price said.   

The respective bosses of each state’s recycling and waste peak bodies are scheduled to meet with Assistant Environment Minister Josh Wilson in Canberra this week.

The associations warn organisations and businesses which require constant rubbish removal - like hospitals, aged care centres and supermarkets - would be rife with health issues within 48 hours of the trucks stopping.

Mr Lemin told the ABC one NSW operator had been informed they would receive only 12,000L of their regular fortnightly 50,000L delivery. The WA Waste Management and Recycling Association chief told the ABC that operators out west are expecting half of their regular allocations.

On Tuesday, the federal government lowered the safe temperature threshold for diesel which should allow more imports from Canada, Europe and the US.

This is of no concern.

As melanias purse and FD pointed out, we have a fleet of EV trucks ready and able to step into the breech