Australians could pay more for groceries and everyday essentials if governments proceed with a proposed increase to truck fuel charges, the National Road Transport Association (NatRoad) said.
The peak body for transport owner operators said the Road User Charge on trucks is already pushing freight businesses to the brink,
NatRoad has lodged a submission to the National Transport Commission opposing a proposed six per cent increase to the Heavy Vehicle Road User Charge for 2026–27, saying the RUC is double the rate of inflation and would increase the diesel charge paid by trucks from 32.4 cents to 34.3 cents per litre.
NatRoad CE, Warren Clark, said the impact of the proposal goes far beyond trucking companies and will be felt directly by households.
“Every loaf of bread, every carton of milk and every box of fruit you see in a supermarket has arrived on a truck,” Clark said.
“When governments increase the cost of running those trucks, the price pressure doesn’t stop at the depot gate. It flows straight through to the checkout.”
Warren Clark said the proposed increase is particularly damaging because it comes at a time when freight businesses are already being squeezed from every direction.
Clark estimated that increasing the charge to twice that of inflation would cost the average truck using 100,000 litres of fuel an additional $2,000 each year, on top of rising costs for insurance, Workcover, parts and maintenance.
“These are not optional costs. They’re unavoidable, and they’re hitting businesses that are already running on margins of less than three per cent,” he said.
“For a lot of owner-operators, this could easily be the straw that breaks the camel’s back. They’re not sitting on cash reserves. They’re working week to week, truck to truck, just to keep the doors open.”
“When trucking businesses go under, competition disappears, particularly in regional areas.
“That means fewer operators, longer delivery times and higher prices. Regional Australians feel it first, but everyone feels it eventually.”
The Australian Trucking Association (ATA) has also rejected a fourth consecutive 6 per cent increase in heavy vehicle charges, proposed to apply in 2026-27.
ATA CEO Mathew Munro has warned that the industry is at breaking point, saying: “Trucking operators are already facing extreme financial and operational pressures including inflation, high interest rates, severe driver shortages, low freight rates and the rapid rise of sham contracting.
“In 2025, insolvencies reached record levels, with one in every 12 road transport businesses closing their doors.
“Three years of 6 per cent charging increases has contributed to this dire situation. The trucking industry simply cannot absorb another steep charging increase.”
The ATA submission argues that governments should instead apply a more moderate increase, not exceeding 4 per cent.
It said that rate is necessary to provide some financial relief to operators and to assist in rebuilding trust in fair and reasonable charging decisions as governments prepare to transition to an alternative method for calculating heavy vehicle charges – a Forward Looking Cost Base.
Beyond charges, the ATA has also called for a renewed commitment to supply-side reforms, continual staged improvements to the Heavy Vehicle National Law, and the protection of fuel tax credits.
The ATA said that road freight essential to every Australian household and business, and therefore governments must choose a fair and sustainable path forward.
Read the ATA submission here.
The NatRoad CEO said frustration among owner operators is made worse by continued poor road conditions, bottlenecks and safety risks on key freight routes.
“No one is arguing against paying a fair share for roads, but before governments ask for more money, they need to show that the money already collected is being spent efficiently and delivering real improvements,” Clark said.
“Fairness also means recognising capacity to pay. You don’t fix a budget gap by pushing small businesses over the edge and hoping consumers won’t notice.”
NatRoad is calling for the increase to be capped at inflation for 2026–27, with broader reforms to fuel charges to be considered through the upcoming Forward-Looking Cost Base process.
“That process is supposed to properly assess costs, priorities and value for money,” Clark said.
“Rushing through an above-inflation hike now is the wrong move at the wrong time.”
Read more about the RUC.
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