A DRAFT emergency order aimed at addressing escalating fuel costs in road transport has been welcomed by the Victorian Transport Association.
The order followed a joint emergency application by the Australian Road Transport Industrial Organisation (ARTIO) and the Transport Workers’ Union (TWU) and could be finalised before 21 April.
Further consultation is expected later this week.
If implemented, the order would require road transport customers to ensure freight rates are sufficient to cover rapidly rising fuel costs, with fortnightly reviews to account for ongoing fuel price volatility.
It is said to represent a critical step to relieve extreme financial pressure on businesses operating on razor‑thin margins.
“As ARTIO national secretary, I have been closely involved in deliberations with the Fair Work Commission and key industry stakeholders over recent weeks on behalf of transport operators,” said VTA chief executive Peter Anderson.
“ARTIO’s position complements the VTA’s longstanding and well‑publicised calls for fuel levies to be deployed as a necessary and transparent mechanism to recover soaring diesel costs that simply cannot be absorbed within existing freight rates.”
Mr Anderson said failure to recover fuel costs fairly from the top of the supply chain posed serious safety and supply‑chain risks.
“Without appropriate cost recovery, operators are forced into unsustainable decisions that increase pressure and undermines maintenance safety.
“Cost recovery at the top of the supply chain is essential to protect the viability, safety and sustainability of the road transport industry.”
The VTA acknowledged some major transport customers had already begun adjusting fuel levy arrangements, but said broad and consistent support from retailers, manufacturers, mining companies and other major supply‑chain participants was urgently needed to avoid business failures and supply‑chain disruption.
The VTA is urging transport operators without fuel recovery mechanisms in place to seek guidance.
“If operators don’t already have a fuel levy in place, we strongly encourage them to contact the VTA for practical advice on incorporating fuel cost recovery into their pricing, cost modelling and contract discussions,” Mr Anderson said.
“Our team can assist members with best‑practice approaches to fuel levies and engagement with customers during this period of extreme volatility.”
Mr Anderson said maintaining a viable, safe and sustainable road freight sector was critical to keeping the nation moving and reaffirmed its commitment to advocating for practical, industry‑led solutions.