The Australian Livestock and Rural Transporters Association is urging the Federal Government to delay an increase in the heavy vehicle road user charge as diesel prices surge across regional Australia.
The Australian Livestock and Rural Transporters Association (ALRTA) has warned that rising fuel costs and the end of temporary road user charge relief could place additional pressure on rural freight operators and Australia’s food supply chain.
The heavy vehicle road user charge is scheduled to increase from 16.4 cents to 32.4 cents per litre on Monday, 3 August.
According to the ALRTA, the increase will add $64 to the cost of every 400 litres of diesel used by a heavy vehicle.
ALRTA President Gerard Johnson said the timing of the increase was particularly concerning because regional transport businesses were already experiencing a sharp rise in diesel prices.
“Regional transport operators are already paying more than $2.20 a litre in many areas, and much more in remote communities,” Johnson said.
“Almost doubling the road user charge now would push up the cost of moving livestock, grain, feed and food across the country.”
Australian Institute of Petroleum figures cited by the ALRTA show that regional diesel prices averaged 220.7 cents per litre during the week ending 26 July, an increase of 18.6 cents in seven days.
The Northern Territory recorded the highest regional average at 269.4 cents per litre, while the national wholesale diesel price increased from 191 cents to 210.2 cents per litre in one week.
The Federal Government reduced the road user charge to zero between April and June before introducing a temporary rate of 16.4 cents per litre for July.
The ALRTA is calling for the 16.4-cent rate to remain in place until 31 August while the Government reviews fuel prices and supply conditions.
Johnson said the issue extended beyond the operating costs faced by livestock and rural transport businesses.
“Rural transport is an essential link in Australia’s food supply chain,” he said.
“When operators can no longer afford to run a service, the consequences flow from the farm gate through to processors, supermarkets and Australian families.”
ALRTA modelling estimates that agriculture-related road freight consumes between 1.5 billion and 2.5 billion litres of diesel annually.
At those volumes, even relatively small increases in fuel and road user charge costs can produce significant expenses across the sector.
“On some runs, an increase of this size can wipe out the margin and turn a viable job into a loss,” Johnson said.
“The Government should keep the road user charge at 16.4 cents until 31 August. Operators need that decision before Monday’s increase takes effect.”
The association said the renewed pressure on global oil supplies and Australian fuel prices supported extending the temporary relief arrangements.
