NatRoad is calling on the Federal Government to extend the suspension of the Road User Charge for heavy vehicles until Christmas, warning fuel market uncertainty remains a risk for operators even if the Strait of Hormuz reopens this week.
The National Road Transport Association says the temporary relief should remain in place beyond July 1, when operators are already expecting cost pressure from the return of the fuel excise.
The call follows renewed disruption in the Strait of Hormuz, a globally significant oil shipping route. While reports indicate the passage may reopen within days, analysts have warned that shipping flows, oil production and price relief may take time to normalise.
NatRoad CEO Warren Clark said the Government should avoid adding further costs to freight businesses while diesel markets remain exposed to global volatility.
“If trucks stop, Australia stops,” Clark said.
Why is NatRoad calling for action now?
NatRoad’s warning comes as fuel markets remain sensitive to developments in the Strait of Hormuz.
The association says operators still need certainty while prices remain exposed to geopolitical risk, supply disruption and the scheduled return of fuel excise.
Clark said transport businesses were still recovering from the financial shock experienced in March, when diesel prices surged and many operators were pushed to breaking point.
“The closure of the Strait of Hormuz is a serious escalation that threatens global fuel supply and price stability,” Clark said. “We will already have a jump when fuel excise returns in a few weeks. The worst thing the Government could do right now amid so much uncertainty is add another 32.4 cents per litre to trucking costs by reinstating the Road User Charge on 1 July.”
What would the Road User Charge return mean for freight?
NatRoad argues that bringing back the Road User Charge would increase the cost of moving goods at a time when operators face volatile fuel prices, tight margins and broader economic uncertainty.
The association says the earlier suspension gave operators stability during an extraordinary period of pressure.
“It was a sensible decision when it was introduced and it remains the sensible decision now,” Clark said.
“Many transport businesses are still recovering from the financial shock of March. They simply do not have the capacity to absorb another dramatic fuel cost increase on top of the return of the fuel excise in July.”
How could freight cost pressure reach households?
NatRoad warned that any increase in trucking costs would eventually flow through supply chains.
The association said road freight carries around 80 per cent of Australia’s domestic freight task, making heavy vehicle operating costs a major factor in the price of groceries, medicines, farming inputs and other essentials.
“When trucking costs rise, the price of groceries, medicines, farming inputs and everyday essentials rises with them,” Clark said.
The warning comes as fuel and fertiliser costs remain key pressure points for agriculture, retail and logistics businesses.
What is NatRoad asking government to do?
NatRoad wants the Federal Government to extend the Road User Charge suspension until the end of the year.
The association says this would give operators greater certainty while global fuel markets settle and help reduce cost-of-living pressure on households.
“This is not the time to increase costs on the businesses that keep Australia moving,” Clark said.
“The Government acted decisively in March. We are asking them to show that same leadership again.”