Diesel hits $4.25/litre on K'gari as owner lays bare reality of fuel crisis

Wednesday, 25 March 2026 11:08

Co-owner Nicky took to Facebook to explain she has "done everything [she] can" to minimise surging costs at the bowser.

The owner of a remote fuel station on Queensland's K'gari island has defended charging over $4 per litre for diesel, rejecting any suggestion she is "taking advantage" of the global oil crisis.

Orchid Beach Trading Post and Driftwood Bar, one of the few options for filling up on K'gari, is now charging $4.25 a litre for diesel - well above the national average of $2.84 a litre as reported by the Australian Institute of Petroleum.

After facing backlash on social media over the seemingly record price, co-owner Nicky took to Facebook to explain she has "done everything [she] can" to minimise surging costs at the bowser.

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Orchid Beach Trading Post and Driftwood Bar

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"I hear the comments about fuel, and I genuinely get it – no one likes high prices, including me," Nicky said in a message.

"But please remember, a small, independent servo in a remote location, running completely off-grid on generator power… who can't even get confirmed delivery dates or pricing beforehand – that's just the reality of getting fuel up here."

Supplying fuel to the 122-kilometre-long sand island is already a precarious exercise.

Orchid Beach Trading Post and Driftwood Bar is one of just five fuel locations on K'gari.

There, motorists can only buy unleaded or diesel.

Fuel on the island is generally more expensive than mainland Australia due to the high delivery costs, which involves the use of a barge.

Before the conflict in the Middle East disrupted the flow of crude oil to Australia, diesel could already nudge $3 per litre on K'gari.

Nicky said her business is getting "absolutely smashed" by suppliers, including new charges for delivery.

"Those costs add up fast," Nicky said.

"And just to clear a few things up… if anyone thinks we're sitting on cheap fuel bought months ago – yeah, nah," she added.

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"We don't have big storage tanks, and this place runs on close to 2,000 litres a week just to stay open.

"I am absolutely not here to take advantage of anyone – just focused doing my absolute best to keep a service running in a pretty tough environment."

She urged visitors to K'gari to fill up their cars on the mainland beforehand, particularly 4WD drivers.

The owners declined to comment when contacted by Nine.com.au.

CreditorWatch's Business Risk Index report published today found the price of diesel increased by 36 per cent in just two weeks and has now reached up to $3 a litre on the mainland.

Fears are growing that the price of diesel could surpass $4 per litre more broadly across Australia.

Around 550 petrol stations around Australia have run out of at least one type of fuel as prices skyrocket and supplies threaten to dry up.

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