NatRoad has called on the Federal Government to immediately remove road user charges for heavy vehicles and to activate disaster recovery funding arrangements, with the warning that transport businesses are shutting their doors under the weight of rising fuel costs.
NatRoads issued the dramatic ultimatum this week in the wake of the crisis that has emerged as a result of the US assault on Iran that has reduced fuel supply and caused a massive price spike.
NatRoad CEO Warren Clark said that the time for talk is done and that what is needed now is immediate, decisive action.
“While the creation of the recently announced fuel taskforce was a welcome step to manage supply across the country, and NatRoad stresses the industry can not afford delays,” said Clark.
“Some of our members are telling us they simply cannot keep going. We are seeing long-term operators parking their trucks and walking away from businesses they’ve spent years building,” he said.
NatRoad is urging the Government to prioritise the temporary removal of the road user charge, describing it as an unnecessary cost burden at a time when operators are struggling to survive.
“The Road User Charge is compounding the pressure on small transport businesses at the worst possible time,” Mr Clark said. “If we don’t want to see more businesses close, we need to act now,” Clark said.
In parallel, NatRoad is calling on the Federal Government to urgently activate the Disaster Recovery Funding Arrangements (DRFA) to support small trucking businesses impacted by the Strait of Hormuz fuel crisis.
“Diesel prices have surged by around 80 cents per litre since early March, driven by global supply disruption,” Clark said.
“This is not something small operators can absorb or pass on, it is an external crisis, and it requires a Government response,” he said.
NatRoad said that the DRFA provides an existing and appropriate mechanism to deliver immediate relief, including small business recovery grants and concessional loans administered through states and territories.
“We are asking the Government to work with states to activate the DRFA as a matter of urgency to get cash into the hands of operators who are in acute financial distress right now,” Clark said.
Clark warned the full impact of rising fuel costs is yet to be felt, with many operators bracing for a financial hit next month.
“We are expecting to see more businesses make tough decisions on 21 April, when the fuel card bills for March start landing,” he said. “That will be the moment many operators realise they simply can’t absorb these costs any longer.”
Clark said the consequences of inaction would extend far beyond the transport sector, flowing directly through to higher prices for groceries, fuel and essential goods.
“When trucking businesses collapse, supply chains suffer, and Australian households pay the price.”
Clark reiterated that DRFA activation would complement, not replace, broader fuel relief measures, including temporary removal of the Road User Charge.
“We need both immediate financial support and structural relief to keep this industry moving,” Clark said.
NatRoad says it will continue advocating for practical, immediate relief measures and supporting its members through the price shocks.
“We are working with our members and encouraging all operators to review their contracts, manage cash flow, and find fuel efficiencies during this incredibly challenging time,” the NatRoad CEO said.
“However, the industry can’t continue absorbing price shocks on behalf of the entire supply chain – the Government needs to step in now,” he concluded.
