Australian Government’s Temporary Fuel Excise Relief

Attention: Shipping Manager

 

Australian Government’s Temporary Fuel Excise Relief

We are writing to advise of the upcoming change to the Government’s fuel excise arrangements.

As previously reported, the situation in the Middle East has caused disruption to international energy markets, directly affecting Australian domestic freight costs. As container transport logistics in Australia is reliant on diesel fuel, rising diesel prices affect the entire container freight supply chain, requiring frequent monitoring and adjustment.

In April, the Government announced a 3-month excise reduction which helped alleviate cost pressures for local trucking in Australia. However, the Government’s temporary fuel excise relief was scheduled to end on 2 August 2026, with the remaining fuel excise (16 cents per litre) expected to be reinstated from today 3 August 2026, subject to further Government announcements.
This change is expected to increase the cost of diesel and other transport-related fuels from 3 August, and we expect fuel surcharges will increase accordingly in the coming weeks.

Please note that the increasing fuel surcharges do not represent an increase in margin for our business, but reflect the rapidly rising costs being passed through by our suppliers, and it is necessary for us to ensure our operating costs are covered so we can continue to move cargo to its destination and maintain efficient service for our customers.

 

• Destination Fuel Surcharge Increase

Current fuel surcharges are given below for reference:

Sydney Fuel surcharge = 36%
Melbourne Fuel surcharge = 35%
Brisbane Fuel surcharge = 38%
Adelaide Fuel surcharge = 40.5%
Fremantle Fuel surcharge = 36%

The fuel surcharges will continue to be applied based on the applicable rate during the period in which the transport movement takes place. Where services span multiple days, the surcharge may be adjusted to reflect the rate in effect on each day of the movement.
Given the volatility of the price of fuel, we will continue to assess these surcharges weekly. However, if you would like to clarify the latest updates, please contact your sales representative.

We will keep you updated once further information becomes available.