NatRoad is calling on the Federal Government to keep the Road User Charge at zero as rising diesel prices place renewed pressure on transport operators and the broader supply chain.
The national average diesel price has climbed above $2 per litre for the first time since May, with prices increasing by more than 40 cents per litre during July.
NatRoad attributed the rise to escalating tensions in the Middle East and concerns about disruption to major international shipping routes.
The industry association warned that operators face another cost increase from 3 August, when the Road User Charge is scheduled to rise from 16.4 cents to 32.4 cents per litre. Fuel excise charged at the bowser will also increase from 36.6 cents to 52.6 cents per litre.
NatRoad CEO Warren Clark said the Government could not control international oil prices but could limit the impact of domestic taxes.
“The price of diesel is set by global markets. Canberra can’t control that,” Clark said.
“But it can control the taxes it adds on top.”
NatRoad wants the Road User Charge suspension extended until at least 1 January 2027. If the Government will not maintain the charge at zero, the association has called for the planned August increase to be reconsidered.
Freight costs flow through the economy
Clark warned that higher diesel costs would not remain confined to the transport sector.
“When global conflict pushes diesel prices higher, trucking businesses wear the cost first,” he said.
“Those fuel costs are passed on to consumers. Before long, every Australian will be paying more for groceries, medicines and everyday essentials.”
NatRoad estimates that the return of the full Road User Charge would leave truck operators paying about 31 per cent more for diesel than before the latest conflict in the Middle East began.
Clark said the increase would be particularly difficult for small, family-owned transport businesses already operating on tight margins.
“The worst thing we can do is increase taxes on diesel while global markets are pushing prices higher,” he said.
“We don’t need to make an international problem worse with domestic policy.”
Operators urged to review fuel levies
NatRoad has also asked the Government to work with fuel suppliers to maintain adequate diesel stocks and avoid the shortages and panic buying experienced earlier in the year.
The association is advising transport operators to review their fuel levy arrangements to ensure increases are being recovered from customers wherever possible.
Operators have also been directed to NatRoad’s Fuel Crisis Support Hub for guidance on cashflow management, monthly business activity statement reporting and other measures to manage higher operating costs.
