Australian Diesel Hits $2.86 per Litre as Truckers and Travellers Face Soaring Costs

Diesel prices across Australian capital cities have jumped to A$2.86 per litre, up 18.9 cents in a single week, as Middle East tensions and the end of the government’s fuel excise discount squeeze transport costs. Truckers are calling for renewed fuel tax relief, warning that multi-generational transport businesses face closure. Full-time travellers report fuel costs have doubled, forcing route changes and budget cuts.

Diesel surge hits transport industry hard

Diesel averaged A$2.86 per litre across capital cities on Wednesday, according to ACCC data, with some regional stations reporting prices near A$2.80. Paul Kahlert, chief executive of All Purpose Transport, which employs over 400 people, warned that rising diesel costs threaten multi-generational family businesses. He said second and third-generation operators are putting trucks up for auction because they cannot afford to watch their parents struggle. The transport industry faces peak demand from now until Christmas, which will add further pressure to already elevated prices.

Travellers forced to abandon routes and slow travel

Full-time travellers report fuel costs have nearly doubled. Seamus Campbell, 70, who has lived on the road for three and a half years, said his diesel costs per 100 kilometres have jumped from A$23 to A$50. A full tank now costs him up to A$500. Kate Irwin and her husband spent A$5,260.85 filling their Landcruiser diesel during a 10,000-kilometre caravan trip from Brisbane to central Australia. Campbell said high fuel costs have forced him to stay in closer areas and abandon plans to explore more remote regions.

Government rules out fuel excise relief

Finance Minister Katy Gallagher has ruled out cutting the fuel excise again, rejecting a Coalition proposal to automatically halve the tax whenever crude oil tops US$100 per barrel. The government halved the fuel excise on 31 March, shaving about 26 cents per litre from the bowser. Gallagher said one-off arrangements could be difficult for the economy when inflation is higher. Brent crude has rocketed to about US$104 per barrel, edging near its May peak of US$114.

Oil prices expected to stay elevated through winter

Diesel costs are expected to worsen as oil becomes more expensive during the European winter, when demand for heating homes and businesses surges. Experts predict oil could reach as high as US$150 per barrel as global stockpiles are depleted. Petrol prices have also shot up to about A$2.30 per litre in Australia’s five largest cities. The rising costs are contributing to expectations the Reserve Bank of Australia will hike interest rates to the highest level in 15 years.

Final Thoughts

With diesel at A$2.86 per litre and no government relief in sight, transport operators and travellers face mounting pressure through the peak season. The industry is calling for fuel excise cuts while the government stands firm on its refusal to reinstate them.

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