Australia’s road freight industry is urging the Federal Government to extend the suspension of the Road User Charge (RUC) for heavy vehicles, warning that reinstating the levy from 1 July could increase cost pressures on transport operators still recovering from fuel price shocks earlier this year.
The call comes from the National Road Transport Association (NatRoad), which argues that ongoing volatility in global fuel markets and continued uncertainty surrounding the conflict in the Middle East warrant a longer suspension of the charge.
The Federal Government temporarily removed the RUC, a 32.4-cent-per-litre levy applied to heavy vehicle fuel use, from April following a sharp rise in diesel prices linked to disruptions in global oil markets.
Fuel pressures remain
According to NatRoad, diesel prices surged during March as conflict in the Middle East affected global fuel supplies, with some operators paying up to $3.25 per litre where fuel remained available.
The association said many trucking businesses faced severe financial pressure as fuel costs climbed, forcing some operators to reduce fleet activity.
A survey conducted by NatRoad in April found 38 per cent of operators had taken at least one truck off the road during the period of elevated fuel prices.
Concerns over freight costs
NatRoad argues that reinstating the RUC from July would add further costs to freight operators at a time when businesses continue to face higher expenses across fuel, insurance, wages, finance and regulatory compliance.
The organisation said road freight remains the dominant mode of domestic freight transport in Australia, carrying approximately 80 per cent of the nation’s freight task.
As a result, increases in trucking costs can flow through supply chains and affect the cost of transporting food, medicine, agricultural products, retail goods and industrial supplies.
The association also warned that regional communities would be particularly exposed because of their reliance on road freight networks.
Call for extended relief
In an opinion piece published by NatRoad, Chief Executive Officer Warren Clark said extending the suspension until the end of the year would provide certainty for transport businesses facing ongoing market uncertainty.
“Suspending the RUC for heavy vehicle freight until the end of the year would deliver certainty to an industry which has to keep going,” said NatRoad Chief Executive Warren Clark.
Mr Clark said the factors that prompted the temporary suspension in March had not fully disappeared, with fuel markets continuing to be affected by geopolitical developments.
“Without leadership and practical intervention now, Australia risks sliding straight back into the same cycle we saw only months ago,” he said.
The Federal Government has previously stated that the temporary suspension was intended as a short-term measure to help ease pressure on transport operators during a period of elevated fuel prices. Under current arrangements, the RUC is scheduled to return on 1 July 2026.
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