Industry asks Catherine King to delay 3 August increase until the end
Rural transport operators are urging the Federal Government to pause a sharp rise in the heavy vehicle road user charge due on 3 August 2026, arguing that another jump in diesel costs would hit freight businesses already dealing with renewed oil market turmoil.
The Australian Livestock and Rural Transporters Association has backed the Australian Trucking Association, which is taking the case directly to Transport Minister Catherine King. Both groups want the increase delayed until at least the end of August 2026.
Under the scheduled change, the charge will rise from 16.4 cents to 32.4 cents per litre on 3 August 2026. That would add $64 to a 400-litre fill.
National average terminal gate diesel prices also climbed by 9.3 cents per litre in one week, from 181.7 cents to 191.0 cents. According to the industry groups, conflict in the Middle East has added fresh pressure to global fuel supply.
Gerard Johnson and ATA call
ALRTA president Gerard Johnson said regional carriers were already covering long routes across rural and remote Australia on very slim margins.
“Livestock and farm freight still have to move, whatever happens overseas,” Mr Johnson said.
Rural operators often buy fuel by the thousands of litres, so a rise of this size can wipe out the margin on a load. As a result, a paying job can quickly turn into a loss.
In June 2026, the Government announced plans to restore fuel excise and the road user charge in stages after the United States and Iran agreed to a 60-day ceasefire. However, that ceasefire has since collapsed.
Following that breakdown, attacks and blockades disrupted oil shipping. Russia also stopped diesel exports after attacks on its refineries.
Johnson backed the ATA’s direct approach to King and wants the minister to review the market again at the end of August 2026 rather than proceed on 3 August 2026.
“Rural transport operators should not be hit with a higher tax in the middle of another fuel price shock,” Mr Johnson said.
ALRTA said livestock haulage and farm freight remain essential to Australia’s food supply, regional economies and national resilience. Meanwhile, the group is seeking a temporary freeze, not a permanent cancellation, of the scheduled increase.
The announcement was issued on 23 July 2026.
