Road Freight NSW (RFNSW) is calling on the Australian Government to extend the temporary reduction in the Heavy Vehicle Road User Charge (RUC), warning that allowing the charge to return to its full rate from 3 August would place further pressure on an industry already grappling with escalating operating costs.
The current reduction in the RUC has provided important relief for freight operators during a period of sustained global uncertainty and volatile fuel markets. However, with diesel prices remaining elevated and cost pressures continuing to mount, RFNSW says now is not the time to increase the cost of moving freight.
The increase would see the Heavy Vehicle Road User Charge rise from 16.4 cents per litre to 32.4 cents per litre, reducing the fuel tax credits available to eligible heavy vehicle operators and increasing the effective cost of running Australia's freight fleet.
“Australia’s diesel supply remains adequate, but the market is under sustained pressure. Diesel prices are being driven not only by higher global crude oil prices, but also by elevated refining margins and a widening diesel crack spread,” RFNSW Chief Executive Officer Simon O'Hara said.
“Freight operators should prepare for wholesale diesel prices to remain elevated over the coming weeks. Unless geopolitical tensions ease materially, the greater likelihood is that diesel prices will remain high rather than fall sharply."
Mr O’Hara said increasing the Heavy Vehicle Road User Charge in the current environment would further undermine the sustainability of an industry that carries the overwhelming majority of Australia's domestic freight task and underpins the nation's economy.
“On current indications, it is more likely than not that geopolitical tensions will not have eased materially by 3 August. The Federal Government should therefore not allow the current reduction in the Heavy Vehicle Road User Charge to expire,” Mr O’Hara said.
“Allowing the RUC to rise from 16.4 cents to 32.4 cents per litre on 3 August would impose a substantial additional cost on freight operators at precisely the wrong time.
“Road freight businesses across New South Wales have already absorbed years of increasing costs, including insurance, finance, maintenance, wages, tolls and regulatory compliance, while continuing to keep essential goods moving across the state.
“The existing reduction should be extended through August, with the Government also actively examining whether a deeper reduction is required if fuel prices or international supply conditions deteriorate further.”
RFNSW said supporting the freight industry during periods of market instability is critical to maintaining resilient supply chains and limiting further cost pressures on Australian businesses and consumers.
“The conflict remains volatile, and government policy must be capable of responding to rapidly changing conditions rather than automatically adding costs back into the freight supply chain.
“Diesel is one of the largest operating costs for road freight businesses. Sustained fuel-price increases, combined with a higher Road User Charge, would place further pressure on operators, supply chains and ultimately the cost of goods for Australian consumers.”
Mr O'Hara said the freight industry is not seeking special treatment, but practical policy settings that recognise the essential role road transport plays in Australia's economy.
“This isn't the time to place further pressure on an already strained industry and workforce that shows up every day to keep Australia's economy moving,” he said.
RFNSW is urging the Australian Government to maintain the current Heavy Vehicle Road User Charge reduction through August while continuing to monitor fuel markets and global conditions before determining any future changes.
Mr O’Hara said RFNSW also welcomed news that the Australian Government has committed $4 Million towards a feasibility study into the construction of a new oil refinery in Western Australia.
About us:
About RFNSW
Originating in 1893, Road Freight NSW (RFNSW) is the peak industry organisation for the road and freight industry in NSW and engages in advocacy, government and media relations on behalf of members.
Contact details:
RFNSW media contact:
Morgan Clark 0427 994 521