Australian consumers and businesses must be ready to pay more as the cost of diesel rises, says Australian Trucking Association (ATA) CEO Mathew Munro.
The market price for diesel has increased from $130 in February to almost $220 per barrel in March, with retail diesel prices rising by almost 19 cents per litre since last Sunday.
Munro said trucking businesses operated on very tight margins and would have to pass fuel price increases onto their customers.
“Fuel is typically one of the top three costs for a trucking business,” he said. “Any increase in fuel prices has a big impact.
“Some trucking businesses have fuel levies that automatically adjust their invoices as the price of fuel changes. Others depend on periodic rate reviews — or don’t have rate review provisions in their contracts at all.”
Munro said trucking businesses needed to review their costs and, if necessary, have open conversations with their customers about bringing forward the next fuel levy adjustment or rate review.
Operators also needed to plan for delays in filling fuel orders due to increased demand.
“Trucking businesses cannot be expected to absorb the cost of increased fuel prices,” Munro said. “Our industry is already under extreme pressure, with one in every 12 businesses closing in the 12 months to November 2025.”
The ATA and its members have campaigned since 2014 to strengthen Australia’s fuel security. As a member of the International Energy Agency (IEA), Australia is required to hold oil stocks equivalent to 90 days of net imports.
The ATA pushed back against the previous government’s plan to store Australia’s fuel reserves in the United States — “on the other side of a very wide ocean,” Munro pointed out.
“We also worked with the industry department on the 2021 legislation that established the current national fuel reserve. Under its minimum stockholding obligation (MSO) rules, fuel importers and refiners are required to hold baseline levels of fuel.
“About three billion litres of diesel are held under the MSO — enough to last 33 days. The fuel is in Australia or on ships nearby. Our total oil stocks are equivalent to 50 days of net imports in IEA terms.
“The federal government has made progress on Australia’s fuel security, but it’s been a problem for many years. Australia needs to have the 90 days of net import cover that we signed up to hold.”
Munro said the rise in diesel prices underscored the importance of the ATA’s submission to the Fair Work Commission (FWC) regarding the contractual chain order it was considering. The FWC has the power to issue orders covering the whole of the road transport contract chain.
“In our submission, we supported a requirement for yearly rate reviews, but with more frequent reviews of the price of fuel — unless a contract already includes a fuel levy mechanism,” he said.
“Those requirements won’t come into force until late 2027 at the absolute earliest. The solution for now is for trucking companies to monitor their costs and talk to their customers.”
The ATA said it would continue engaging with the government and fuel suppliers.
“We must emphasise the critical importance of road freight transport to everyone in Australia,” Munro said.
