Truck Drivers Pushed to the Brink as Diesel Costs Soar

For almost 40 years, Paul Kahlert has watched new generations of truck drivers learn from their parents about how to move produce and crucial supplies across the country.

They have been lifelines for small towns, which often rely on road trains for their food, clothes and school supplies.

Now, Kahlert is seeing multi-generation businesses put their trucks up for auction.

“Second and third generations can’t afford to look up the hill and see that their parents are struggling,” said the chief executive of All Purpose Transport, which employs more than 400 people.

Kahlert is one of the growing number in the transport industry urging the federal government to reintroduce a fuel excise cut.

Diesel cost an average of $2.86 (US$2) a litre in capital cities on Sept. 23, up 18.9 cents from the week prior, ACCC data showed—and it’s expected to worsen.

“From now until Christmas is the peak period for the transport industry,” Kahlert said, warning demand would put more pressure on prices.

At the same time, oil will likely become more expensive for the next six months during the European winter, when demand for heating homes and businesses surges.

The rising costs are contributing to an almost universal expectation the Reserve Bank of Australia will hike interest rates on Sept. 29 to the highest level in 15 years.

The federal government has essentially ruled out cutting the fuel tax again, which gave motorists 32 cents a litre relief at the start of the US-Iran war.

The government was “very clear” the excise cut was temporary, Energy Minister Chris Bowen said.

“We did extend it a bit so it gradually returned to more normal levels, but we are not going to respond to every daily movement on the world oil price,” he told ABC in mid-September.

Focus had shifted to more permanent cost of living help through the tax system, Finance Minister Katy Gallagher said on Sept. 21.

Economists have warned against reinstating the tax break, because it would ultimately worsen inflation.

But Kahlert disagreed, instead favouring a Coalition plan for a new cut, as he pointed to more immediate impacts.

“The government can argue that they are getting more revenue and more tax, and therefore their returns are better, but from an operator’s perspective, they are having to find that cash in their business,” he said.

He joined colleagues from Queensland and Australian trucking groups to call for immediate relief.

“Members are doing everything they can to keep freight moving, but they cannot keep financing sharp fuel increases on behalf of the rest of the supply chain,” Queensland Trucking Association chief executive Gary Mahon said.

The federal government was contacted for comment on Sept. 25.

By Lucinda Garbutt-Young in Canberra