Industry, local government highlight fuel freight pain

FUEL price pressures on Australia’s freight and logistics sector have been highlighted by groups from both industry and government.

The issue has been prominent since war broke out in the Middle East a month ago, and while a ceasefire has been welcomed, there are doubts as to whether it will hold.

Victorian Transport Association chief executive Peter Anderson said continued fuel price volatility was placing serious strain on transport operators.

“There is fuel available in Australia. The challenge for freight operators is cost,” Mr Anderson said.

“Rapid increases in diesel prices are putting extraordinary pressure on businesses already operating on thin margins.”

Mr Anderson said the VTA welcomed the federal government’s decision to bring forward $6.15 billion in concessional finance under its Economic Resilience Plan, supporting fuel and critical supply chains.

“Bringing forward the Economic Resilience Program is a positive and timely step,” he said. “Targeted support for fuel, logistics and supply chain businesses will help stabilise operations during periods of global disruption.”

While a recently announced ceasefire in the Middle East may deliver short‑term relief to global oil markets, Mr Anderson said Australia remained “highly exposed” to international price shocks.

“Any easing of global tensions is welcome, but Australia’s reliance on imported refined fuel leaves us vulnerable,” he said.

Mr Anderson said it was unrealistic to expect operators to absorb sustained price increases.

“If these costs can’t be fairly recovered, businesses will fail, capacity will leave the market, and supply chain resilience will be compromised,” he said.

Mr Anderson said transparent fuel levies remained a necessary commercial mechanism to manage uncontrollable cost increases.

Chair of Regional Cities NSW and mayor of Lismore, Steve Kreig, said the fuel crisis was not just a bowser issue.

“When freight slows, supermarket prices rise. When fuel costs spike, road maintenance blows out,” Cr Kreig said.

“When construction becomes more expensive, housing supply stalls even further. And when councils can’t afford to run water treatment plants or cart emergency supplies, communities are put at risk.”

Climate Council chief executive Amanda McKenzie said the more homes and transport systems were electrified, the more dependence upon imported oil and gas would be reduced.

“That not only cuts costs, it shields Aussie households, farms and businesses from on-going global price shocks,” Ms McKenzie said. “It is crucial that our government does not settle for short-term thinking and short-term fixes; it needs to meet the moment by reducing reliance on fossil fuels and investing in reliable, affordable Australian power from the sun, wind and batteries.”