The National Road Transport Association (NatRoad) is urging the Federal Government to drop the Road User Charge (RUC) back to zero, warning it is the only lever available to prevent another global fuel shock from hitting Australian families.
National average diesel prices have now climbed above $2 per litre for the first time since May, increasing more than 40 cents per litre this month as tensions in the Middle East escalate and global fuel markets react to fresh threats to major international shipping routes.
From 3 August, diesel costs for truckies will jump another 32c. The Federal Government will lift the Road User Charge from 16.4c per litre to 32.4c per litre; while the Fuel Excise at the bowser will increase from 36.6c per litre to 52.6c.
NatRoad CEO Warren Clark warned fuel increases will be passed on to consumers and called on the Federal Government to rethink the timing of another steep rise.
“The price of diesel is set by global markets. Canberra can’t control that,” he said.
“But it can control the taxes it adds on top.”
“That’s why we’re again calling for the Road User Charge to remain at zero until at least 1 January next year.”
Mr Clark said Australia was once again seeing exactly the conditions the industry had warned about in March.
“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.”
Mr Clark said the temporary suspension of the RUC earlier this year helped stabilise the industry during one of the most volatile periods in recent memory.
“That decision gave operators breathing room when they desperately needed it,” Mr Clark said.
“If the full Road User Charge returns as planned, truck operators will be paying around 31 per cent more for diesel than they were before the conflict in the Middle East began.
“That’s simply not sustainable for small family transport businesses.”
Mr Clark said that if the Government was unwilling to extend the suspension of the RUC, it should at the very least reconsider the scheduled increase due next month.
“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.”
NatRoad also urged the Government to continue working with fuel suppliers to maintain adequate diesel stocks and avoid the panic buying and supply shortages experienced earlier this year.
“We saw in March what happens when confidence disappears,” Mr Clark said.
“Keeping fuel available and keeping costs down isn’t just good for truckies—it’s good for every Australian.”
NatRoad is reminding operators to review their fuel levy arrangements to ensure rising fuel costs are being recovered wherever possible.
Mr Clark reminded operators to visit the NatRoad Fuel Crisis Support Hub for practical guidance on managing higher operating costs, including monthly BAS reporting and cashflow support.
Kate McMahon
Pure Public Relations
0403 991 424
[email protected]
Varsha Kumar
Pure Public Relations
0420 540 589
[email protected]
