Road train operated by Camrandale Transport, Quilpie QLD

THE Australian Livestock and Rural Transporters Association has warned that the Federal Government risks placing further pressure on Australia’s food security unless it extends relief from the heavy vehicle road user charge.

The temporary relief ends this Sunday. From Monday 3 August, the charge will rise to 32.4c/litre, increasing the road user charge by $64 for every 400 litres of diesel used.

Gerard Johnson

ALRTA President Gerard Johnson said the increase would hit rural carriers just as they faced another sharp rise in diesel prices.

“Regional transport operators are already paying more than $2.20 a litre in many areas, and much more in remote communities,” Mr Johnson said.

“Almost doubling the road user charge now would push up the cost of moving livestock, grain, feed and food across the country.”

Australian Institute of Petroleum figures show regional diesel averaged 220.7c/l in the week ending 26 July, up 18.6c in seven days.

The Northern Territory recorded the country’s highest regional average at 269.4c/l. The national wholesale diesel price also jumped from 191 to 210.2c in one week.

“This is not simply a transport industry issue,” Mr Johnson said. “Rural transport is an essential link in Australia’s food supply chain. When operators can no longer afford to run a service, the consequences flow from the farm gate through to processors, supermarkets and Australian families.”

The Government reduced the road user charge to zero from April to June before setting it at 16.4c/l for July.

That relief is now ending as the collapse of the ceasefire between the United States and Iran places further pressure on global oil supplies and Australian fuel prices.

“The Government acted when conflict first sent fuel prices sharply higher,” Mr Johnson said.

“Those pressures are building again, and the relief should remain in place while the Government reviews fuel prices and supply conditions.”

ALRTA modelling estimates agriculture-linked road freight uses between 1.5 billion and 2.5 billion litres of diesel each year. At that scale, every increase in the cost of fuel adds up quickly across the sector.

“On some runs, an increase of this size can wipe out the margin and turn a viable job into a loss,” Mr Johnson said.

“The Government should keep the road user charge at 16.4c until 31 August. Operators need that decision before Monday’s increase takes effect,” he said.

Source: ALRTA