Fuel prices rise again due to scheduled indexation

The National Road Transport Association is urging the Federal Government to provide special relief for the road transport industry.

Fuel prices rise again due to scheduled indexation
Rising fuel prices are hurting the transport industry.

The National Road Transport Association has lamented the rise of the price of fuel as the indexation on diesel fuel excise rises from 0.221 cents per litre to 0.230 cents per litre.

The rise is in line with the Australian Tax Office’s twice-yearly indexation of the excise duty rates for fuel and petroleum products other than aviation fuels and certain petroleum-based products.

NatRoad CEO Warren Clark says it is based on the upward movement of the consumer price index.

"While the rise may seem inconsequential in the scheme of things, even small increases are chipping away at the viability of every road transport operator in the country," Mr Clark said.

"One of our members that operates a fleet estimates that this will set his operation back by $1500 per week or almost $80,000 a year."

Prices for the Australian transport sector have been rising at a much higher rate than general inflation levels as measured by the consumer price index (CPI). Over the 12 months to the June 2022 quarter, the CPI rose by 6.1%. The percentage increase for the Australian Bureau of Statistics’ transport sector, however, was 13.1%.

 Mr Clark said automotive fuel prices have risen for eight consecutive quarters and that heavy vehicles have suffered with the loss of the Fuel Tax Credit in the last Federal Budget.

 "We have spoken to the new Federal Treasurer’s office and expect that to be restored in September, but that step will be accompanied by a sharp rise in the cost of diesel fuel after removal of the halving of excise at the bowser."

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