August has kicked off with a rough start for drivers, with a fuel indexation rise meaning fuel costs will go up once more. 

On August 1 the indexation on diesel fuel excise rose from 0.221 cents per litre to 0.230 cents per litre. 

As other costs climb alongside fuel, local truck drivers are concerned it could make business unviable. 

“It’s basically doubled from what we were paying fourteen months ago,” said a Western Plains-based truck driver. 



While the business has been able to pass on some of their fuel costs to the farmers using their services, he described it as ‘a bit more turnover for a lot more fuel’.

With farmers feeling the pinch too, he said that it could mean the high season for truck drivers - harvest - could look a lot different this year. 

“I think farmers will try to keep grain on-farm…people aren’t going to want to keep paying more,” he said. 

“Even loyal customers will start to go elsewhere, but freight rates have to go up, otherwise we’ll be working for nothing,” the truck driver said. 

NatRoad CEO Warren Clark shares a similar concern for the industry. 

“While the rise may seem inconsequential in the scheme of things, even small increases are chipping away at the viability of every road transport operator in the country,” Mr Clark said. 

“One of our members that operates a fleet estimates that this will set his operation back by $1500 per week or almost $80,000 a year,” he said. 

Mr Clark said automotive fuel prices have risen for eight consecutive quarters. 

“We know some of these pressures have been caused by the Russian invasion of Ukraine coupled with ongoing easing of COVID-19 restrictions which has strengthened global demand, but heavy vehicles copped it with the loss of the Fuel Tax Credit in the last Federal Budget," Mr Clark said.

When the fuel excise was cut earlier this year to account for rising fuel prices, so too was the fuel rebate awarded to heavy vehicle drivers. 

“Just give us our rebate back,” the local truck driver said. 

The rebate is expected to be reinstated in September when the excise cut ends for the general public, who can expect a sharp increase in fuel costs of at least 22 cents per litre.