Australian trucking operators are warning customers to prepare for higher freight costs as diesel prices surge, according to the Australian Trucking Association (ATA).
Australian Trucking Association CEO Mathew Munro said the rapid increase in global diesel prices is already flowing through to Australian retail fuel prices and will inevitably affect transport costs across the economy.
The market price for diesel has risen sharply, increasing from around A$130 per barrel on Friday 27 February to almost A$220 per barrel, while retail diesel prices have climbed nearly 19 cents per litre since Sunday.
Munro said trucking businesses operate on tight margins, meaning fuel cost increases cannot be absorbed by operators.
“Fuel is typically one of the top three costs for a trucking business. Any increase in fuel prices has a big impact,” he said.
Many operators use fuel levies that automatically adjust freight invoices when fuel prices change. Others rely on periodic contract reviews, while some contracts have no mechanisms at all to account for sudden price increases.
Munro said operators should review their cost structures and discuss adjustments with customers where necessary.
“Trucking businesses need to review their costs and, if necessary, have open conversations with their customers about the need to bring forward the next fuel levy adjustment or rate review,” he said.
Operators have also been warned to plan ahead when ordering fuel, as demand spikes can lead to delays in supply.
“Trucking businesses cannot be expected to absorb the cost of increased fuel prices. Our industry is already under extreme pressure, with one in every 12 businesses closing in the 12 months to November 2025,” Munro said.
Fuel security concerns remain
Munro said the price spike highlights long-standing concerns about Australia’s fuel security and the country’s dependence on imported fuels.
Australia is required, as a member of the International Energy Agency, to hold oil stocks equivalent to 90 days of net imports.
The ATA has campaigned since 2014 to strengthen Australia’s fuel security and previously opposed plans to store national fuel reserves in the United States.
Munro said progress has been made through the Minimum Stockholding Obligation (MSO) rules introduced in 2021, which require fuel importers and refiners to hold baseline levels of fuel stocks.
Around three billion litres of diesel are currently held under the MSO system, equivalent to about 33 days of supply, with stocks either in Australia or on ships nearby. In total, Australia’s oil reserves equate to roughly 50 days of net imports under IEA calculations.
However, Munro said more work is needed to reach the 90-day target.
“The Australian Government has made progress on Australia’s fuel security, but it’s been a problem for many years. Australia needs to have the 90 days of net import cover that we signed up to hold,” he said.
Contract reforms still years away
The ATA also linked the diesel price spike to its submission to the Fair Work Commission regarding proposed contractual chain orders for the road transport industry.
The Commission is considering rules that could apply across the road transport contract chain, including requirements for annual rate reviews and more frequent fuel price adjustments unless contracts already include fuel levy mechanisms.
However, Munro said those changes are unlikely to take effect until late 2027 at the earliest.
“In the meantime, trucking companies need to monitor their costs closely and speak with their customers,” he said.
“The ATA will continue working with government and fuel suppliers to understand the situation and emphasise the critical importance of road freight transport to everyone in Australia.”
- EHAULA targets the heavy end of freight with electric-powered trailers
Australian technology company EHAULA is developing an electric trailer system designed to help heavy freight operators reduce fuel use without sacrificing the payload and productivity that underpin their businesses. Speaking at TruckShowX, EHAULA Founder and CEO Dr Joshua Allwright said conventional battery-electric prime movers face significant challenges when applied to Australia’s heaviest combinations, particularly long-distance - Waste could fuel Australia’s heavy transport futureAustralia’s household and commercial waste could become a major source of locally produced hydrogen and low-carbon liquid fuels for the heavy transport industry, according to XSeed Solutions Director and Co-founder Craig Allen. Speaking at TruckShowX, Allen outlined a proposed network of regional sustainability precincts that would convert organic-rich waste into hydrogen, methanol and electricity. The
- Heavy transport needs practical decarbonisation, not a single technologyHeavy transport operators should avoid treating battery-electric, hydrogen and transitional fuels as competing technologies, according to TR Group Group General Manager NZ and AUS Brendan King. Speaking at TruckShowX, King said the operating demands of freight meant there was unlikely to be one universal pathway to lower emissions. Heavy trucks work longer hours than passenger
- Renewable diesel gives fleets a practical bridge to zero emissionsHeavy-vehicle operators do not need to wait for electric or hydrogen trucks to begin reducing emissions, according to Viva Energy Australia Carbon Solutions Manager Robert Cavicchiolo. Speaking at TruckShowX, Cavicchiolo said hydrotreated vegetable oil—commonly known as HVO or renewable diesel—could provide an immediate emissions-reduction pathway for fleets using existing diesel vehicles, storage tanks and refuelling
- Dual-fuel hydrogen offers fleets a practical pathway to lower emissionsHeavy transport operators do not buy drivetrains. They buy reliability, payload, uptime and economics. That was the central message from Gareth Wishart, General Manager Technology and Innovation at Change Fuel Tech, during his presentation at TruckShowX. Change Fuel Tech is part of New Zealand-based HW Richardson Group, a privately owned organisation comprising 49 companies across
