VTA warns of higher fuel prices and need for fuel levy

By: Jason Whittaker


The continual surge upwards in the price of oil has resulted in calls for trucking operators to ensure they have

The continual surge upwards in the price of oil has resulted in calls for trucking operators to ensure they have a fuel levy in place to pass on increased fuel costs.

The price of oil has hit a record high $US120 a barrel due in part to supply issues from Nigeria and the ongoing tension with Iran and the US over Iran’s nuclear program.

Victorian Transport Association (VTA) Chief Executive Phil Lovel says the cost of oil will only go up, and trucking operators who are currently absorbing the cost can no longer afford to do so.

By having a fuel levy in place, Lovel says, operators can negotiate with customers to ensure the price burden is shared. With price of oil expected to jump to $US200 a barrel in the next two years, Lovel says operators must act now.

"The transport industry is carrying the burden of these fuel prices and we need to ensure that transport operators are sharing this burden with their customers, or they will not survive," he says.

"We can’t have companies living in a false hope that the prices will go down to levels of five years ago."

Lovel says the only saving grace at the moment is the strength of the Australian dollar, which is keeping the price of fuel from skyrocketing because it currently sits above 90 cents against the US dollar.

"Trucks play an important role in our economy and are the primary means of moving our freight and day to day goods. We need to ensure they can still operate effectively," Lovel says.

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