Truck operators would receive temporary relief from fuel costs under a new Coalition policy that would automatically reduce the heavy vehicle road user charge to zero during major global oil price shocks.
The Opposition’s proposed Fuel Price Shield would be triggered when the two-week average closing price of Brent crude oil rose above US$100 a barrel.
Under the policy announced at the weekend, fuel excise would automatically be halved, reducing the tax on petrol and diesel by about 27 cents a litre.
The heavy vehicle road user charge would also fall from 32.4 cents a litre to zero, allowing truck and bus operators to claim the full 26.85 cents a litre fuel excise as a fuel tax credit, according to the Coalition.
The credit could then be used to offset operators’ GST obligations when lodging their Business Activity Statements.
Any changes would take effect from the Monday after the oil price trigger was reached.
The relief would remain in place until the eight-week average Brent crude price fell below US$100 a barrel or three months had passed, whichever came first.
At that point, the temporary reduction would end unless the government extended it following a review of global oil prices and market conditions.
Shadow Minister for Infrastructure and Transport Bridget McKenzie said the policy would provide protection for truckies, freight businesses and regional communities during international oil price spikes.
“Truckies cannot simply stop driving when oil prices spike. Fuel is one of their biggest costs, and when that cost goes through the roof it flows straight through the supply chain to every supermarket shelf and every small business,” Senator McKenzie said.
“The Fuel Price Shield will protect our transport industry from sudden global oil shocks, with corresponding relief for the road user charge so heavy vehicle operators are not left behind.
“That means lower pressure on freight costs and lower pressure on prices for Australian families.”
The Coalition estimated its policy would cost about $950 million for every month it was activated.
Its analysis found the shield would have been triggered twice during the past five years: for about six months following the global oil price shock of early 2022 and for three months from March 2026.
Opposition Leader Angus Taylor said the proposal would create an automatic response rather than requiring governments to develop temporary relief measures after every major oil price surge.
“When a serious oil shock hits, the tax comes down automatically. When oil prices return to more normal levels, the ordinary rate is restored,” Taylor said.
The Australian Competition and Consumer Commission would be asked to monitor wholesale and retail fuel prices while the shield was operating.
Fuel retailers would be expected to pass on the full excise reduction as existing stocks bought at the higher rate were replaced.
The Coalition said the proposal would complement its previously announced fuel security policies, including plans to more than double minimum stockholding requirements to 60 days and establish an $800 million facility supporting more than one billion litres of additional fuel storage capacity.
Extracted in full from: https://bigrigs.com.au/2026/09/21/coalition-pledges-automatic-fuel-relief-for-truckies/
