Easter holiday travel in regional New South Wales has been significantly affected as rising fuel prices prompt cancellations at caravan parks, leaving operators with reduced bookings during a period that typically marks peak business.
Caravan park owners reported that calls from customers canceling trips are outpacing new reservations, particularly in transit towns along rural highways that serve traveling families and older caravanners known as grey nomads.
As of Wednesday, March 24, 32 petrol stations across New South Wales reported being completely out of fuel, down from 51 on Tuesday, while 187 stations had no diesel available, up from 164. Of these, 109 are located in Sydney.
Diesel prices exceeded $3 per liter in Greater Sydney, with the highest recorded at Ampol in Thirroul at $3.46 per liter. The highest unleaded price was $2.99 per liter in Brooklyn, near the Hawkesbury River.
At Murrurundi Caravan Park, north of Scone in the upper Hunter region, operator Don Kemble expected high occupancy for Easter, coinciding with the Murrurundi Festival and the Warbirds Over Scone air show.
Instead, he has received multiple cancellation calls from travelers concerned about fuel costs and availability. Kemble said, “If they all decide it’s too uncertain and they’ll stay home for the winter, our regions will really suffer – our peak is April to July when all the grey nomads are travelling from Melbourne to Sydney and to Queensland.”
Similarly, Gilgandra Caravan Park operator Peter Mellor reported only two bookings this week, compared with the 20 he would normally expect. Mellor has offered a 15 percent discount to encourage reservations but noted that declining fuel prices are essential for the survival of transit towns like his.
“Fuel prices dropping as soon as possible is the only thing that will save places like us,” he told The Age.
Cindy Gough, a blogger who covers the grey nomad community, noted that even where fuel supplies remain adequate, fears of shortages and rising costs are enough to keep travelers at home.
In contrast, metropolitan tourism operators may see some benefit from domestic travelers canceling longer road trips or overseas travel, according to Margy Osmond, chief executive of the Tourism and Transport Forum.
In response to the fuel situation, Premier Chris Minns announced an emergency operations center in Parramatta to monitor fuel availability and forecast potential shortages affecting sectors including agriculture, freight, construction, and mining.
Energy Minister Penny Sharpe has also invoked powers to compel major fuel companies to report sales and supply data. Minns emphasized that the government would not implement extreme measures such as rationing or declaring an energy supply emergency.
Meanwhile, A2B, Australia’s largest taxi company, requested that the $1.20 passenger levy be redirected to drivers, and Opposition Leader Kellie Sloane called on the federal government to temporarily reduce the fuel excise.
The current situation highlights the vulnerability of regional caravan and RV operators to fuel price volatility, emphasizing the need for contingency planning and flexible pricing strategies to sustain business during periods of external disruption.