Finally — Government Acts on Fuel Crisis with Excise Relief & Road Charge Cuts
National Cabinet reaches in-principle agreement to halve fuel excise and slash heavy vehicle charges. It's been a long time coming, but this is genuinely good news for supply chains and Australian businesses.
After weeks of escalating fuel costs hitting every corner of the logistics industry, the National Cabinet has finally delivered a meaningful response. The measures announced today are exactly the kind of action the industry has been calling for, and they can't come soon enough.
We've been watching this fuel crisis build for weeks now. Every shipment, every container, every last-mile delivery has been feeling the squeeze, and our clients have been feeling it too. So when we saw the news come through this evening that the National Cabinet has reached an in-principle agreement on genuine fuel relief measures, our reaction was pretty simple: about time.
The agreement, reached between the Federal Government and all State and Territory Governments, represents a direct and welcome response to the national fuel shortage and the market pricing crisis that's been hammering Australian supply chains.
What's Been Agreed
Key Measures Announced
Fuel excise close to halved - reduced from the current 52.6 cents per litre down to 26.3 cents per litre. That's a significant cut that should flow through to diesel, petrol, and transport costs across the board.
Heavy vehicle road user charge reduced to zero - for 3 months. This is a huge win for the road transport sector and should help ease pressure on linehaul and last-mile delivery costs that have been climbing steadily.
National Fuel Security Plan - to be developed to address Australia's dangerously low levels of imported fuel supply. This is about long-term resilience, not just short-term relief — and it's exactly what the industry needs.
Full credit to the IFCBAA (International Forwarders & Customs Brokers Association of Australia), which issued a Position Statement earlier today requesting each one of these specific initiatives and got them. That's effective industry advocacy delivering real results.
What This Means for Our Clients
Supply Chain Impact
If these measures are implemented quickly, you should start seeing the benefits flow through in the form of reduced fuel surcharges on domestic transport, lower linehaul costs, and easing pressure on the emergency fuel surcharges that have been stacking up across the supply chain over recent weeks.
The IFCBAA is now calling on all major oil, gas, and fuel distributors and retailers to immediately lower prices at the pump — and on all industry service providers to reduce fuel-based surcharges back to pre-crisis levels (prior to 1 March 2026). We echo that call wholeheartedly.
We've been managing the impact of the Middle East crisis and its flow-on effects for our clients for months now, from ocean carrier Emergency Fuel Surcharges to domestic transport fuel levies. These cabinet measures, if enacted swiftly, should provide real and measurable relief on the domestic side of the equation.
"This is a positive step — and it's been a long time coming. Our industry has been absorbing blow after blow from fuel price escalation, and our clients have been wearing it too. We welcome these measures, and we'll be watching closely to make sure they translate into real savings at the coalface. In the meantime, we'll keep doing what we do, keeping your freight moving and keeping you informed."
We'll continue to monitor this situation and update you as formal announcements are made by the Prime Minister's office. As always, if you have any questions about how these developments affect your shipments or supply chain costs, get in touch — that's what we're here for.
D&D Worldwide Logistics Pty Ltd
Suite 11, 10 Moorabool Street, Geelong VIC 3220
sales@ddwlogistics.com · www.ddwlogistics.com