The Fair Work Commission has issued a landmark order requiring transport clients to engage in regular fuel price reviews, in a move aimed at restoring viability across Australia’s road freight sector.
The ruling follows earlier industry concern around fuel cost recovery, with the decision, which comes into effect on 21 April, requiring retailers, manufacturers, mining companies and other customers at the top of supply chains to conduct fortnightly fuel reviews and ensure freight rates reflect rising diesel costs.
Announced by the Victorian Transport Association, the order is being positioned as a structural shift in how fuel risk is managed across freight contracts, placing greater responsibility on clients rather than operators.
VTA Chief Executive Officer Peter Anderson says the ruling marks the first time transport clients have been held to enforceable standards for the freight services they rely on.
“This is a historic and long-overdue decision from the Fair Work Commission that recognises a simple reality, transport operators cannot continue to absorb extraordinary fuel costs on behalf of the rest of the economy,” he says.
The order follows a joint emergency application by the Australian Road Transport Industrial Organisation and the Transport Workers’ Union, and will remain in place while diesel prices exceed $2 per litre, linked to benchmarks published by the Australian Institute of Petroleum
Anderson says the outcome provides operators with greater certainty, ensuring they can recover fuel costs as prices fluctuate.
“This Order ensures that wherever diesel prices go, transport businesses will have confidence that those costs can be recovered from their customers. That certainty is essential if trucks are to keep moving and supply chains are to remain stable,” he says.
The VTA says the ruling reinforces the need for transparent fuel levies and consistent pricing mechanisms, as industry continues to navigate ongoing volatility in global fuel markets.
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