Australian families could pay more for groceries and everyday essentials if governments push ahead
with a proposed increase to truck fuel charges.
The warning comes from National Road Transport Association (NatRoad) as it 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 – double the current rate of inflation
It would lift the diesel charge paid by trucks from 32.4 cents to 34.3 cents per litre pushing struggling businesses further to the brink.
NatRoad CEO 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.”
Clark said the proposed increase is particularly damaging because it comes at a time when freight businesses are already being squeezed from every direction.
He 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.”
Clark 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,” he 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 reform
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.”
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