The Australian Livestock and Rural Transporters Association (ALRTA) is calling on the Federal Government to provide clear leadership and transparency on Australia’s diesel supply situation.
Diesel prices across parts of regional Australia are surging as supply pressures begin to emerge.
Transport operators have reported diesel price increases of between 30 and 60 cents per litre in recent days, with some regional fuel suppliers also introducing rationing measures.
ALRTA President, Gerard Johnson, said while isolated supply pressures were being reported, the priority must be maintaining confidence and stability across the freight network.
“Transport operators and regional communities need clear information and reassurance that Australia has sufficient fuel supplies and that appropriate measures are in place to maintain stability,” he said.
“Panic buying only risks making the situation worse.
“What we need right now is calm behaviour from consumers and strong leadership and transparency from government.”
The rapid increase in diesel prices is now placing immediate pressure on rural freight operators who already operate on extremely tight margins.
For many transport businesses, the jump of 30 to 60 cents per litre represents a 10 to 20 per cent increase in operating costs almost overnight.
According to the ALRTA, any disruption to freight operations will have direct consequences for Australia’s food and export supply chains.
“With industry margins typically sitting between three and seven per cent, that level of cost escalation places enormous pressure on the viability of small and medium regional operators,” Johnson said.
“If diesel becomes unavailable or unreliable along key freight routes, trucks do not move.”
The ALRTA is also cautioning the Federal Government against rushed policy responses aimed at reducing fuel prices at the bowser.
During the temporary fuel excise reduction in 2022, the fuel tax credit available to heavy vehicle operators was reduced under the existing road user charge arrangements – significantly impacting operator cash flow.
“While excise cuts may provide short-term relief to motorists, they can have unintended consequences for the freight sector,” Johnson said.
“For transport operators the loss of fuel tax credits can effectively add a further five to seven per cent to operating costs almost immediately.”
The ALRTA claims the priority should be ensuring supply stability and providing clear communication to industry and the community.
“Discussion about Australia’s long-term fuel security will inevitably occur in due course, however, now is not the time to create uncertainty,” Johnson said.
“The priority must be ensuring fuel continues to flow so trucks can continue to keep supermarket shelves stocked and deliver the export commodities that underpin Australia’s economy.”
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