Fuel Levy Updates as at 7th April 2026

The unprecedented sudden rise in fuel costs in Australia, especially diesel, has impacted freight significantly. There are high value, high margin goods where the freight costs can be easily absorbed without unduly impacting profitability. In the agricultural ingredient supply chain, margins are typically very low and the distances often travelled are significant.

The use of freight inclusive (FIS) prices as the dominant pricing approach means that either price lists are routinely updated or a separate charge to cover the extraordinary rise in the fuel levy is taken. On some goods the additional charge to other states significantly exceeds the margin on the goods.

TFB Trading has chosen to separate out the recovery of this additional freight charge for two reasons:

1. To avoid sending out a new price list each week and keep our monthly cycle
2. To avoid locking in higher prices if we get price relief

What’s Driving It: Diesel Prices

The national average diesel price climbed steeply through March 2026, peaking at around 295¢/litre on 30 March. From 1 April, the Federal Government halved the diesel excise (from 52.6¢ to 26.3¢/L) and reduced the heavy vehicle road user charge (HVIC) to zero for three months. This brought the retail price down to approximately 240¢/litre by 7 April — however the underlying base fuel cost actually remains higher than the 30 March level.

National Diesel Price (cents/litre)

The base fuel cost is doing most of the work on the underlying price. Excise and HVIC were fixed charges through March, but from 1 April the Federal Government halved the fuel excise from 52.6¢ to 26.3¢/litre and reduced the Heavy Vehicle Infrastructure Charge (HVIC) to zero — both for three months. This government relief accounts for most of the retail price drop on 7 April. Importantly, the underlying base fuel cost remains elevated (around 192¢/L vs 183¢/L on 30 March), meaning the freight carriers’ fuel levy surcharges reflect real cost pressures that persist even with the excise relief.

Freight Cost by Destination — Trend

Each chart below shows how total freight cost per tonne has escalated across five fortnightly levy adjustment periods since end of February. The green section is the base freight rate. The amber-to-red sections are the fuel levy surcharge, growing darker as the levy increases.

Brisbane (base $226/t) — current levy 54.2%

Brisbane has seen the levy climb from 28% to a peak of 59.2%, before easing to 54.2% on 7 April. The levy has added $59 per tonne since end of February.

Perth (base $372/t) — current levy 40%

Perth carries the highest absolute freight cost but the levy increase has been more moderate, capping at 40% from 23 March onwards and holding steady through 7 April.

Sydney (base $143/t) — current levy 54.2%

Adelaide (base $130/t) — current levy 54.2%

Sydney and Adelaide have tracked the same levy escalation as Brisbane — peaking at 59.2% on 30 March before easing to 54.2% on 7 April.

Melbourne (base $42/t) — current levy 35%

What This Means

If you’re buying ingredients on a delivered basis, the freight component of your landed cost has increased materially since late February. On a Brisbane delivery, the levy alone has added $59 per tonne since end of February — though the 7 April adjustment does show the first decrease as diesel prices begin to ease.

The levies are reviewed fortnightly. If diesel prices continue to ease, the surcharges should follow, but there’s typically a lag. We’ll update this post if there’s a material change.

Bean Growers Australia: Fuel Levy Surcharge

For comparison, Bean Growers Australia has applied an extraordinary fuel levy surcharge on their freight-inclusive pricing. Their figures represent the surcharge component only, plus GST. BGA rates updated effective 7 April 2026.

TFB Trading freight costs are per tonne ($/t), rounded to the nearest whole dollar. Fuel levy % is applied to the base freight rate and reviewed fortnightly. Bean Growers Australia figures represent the extraordinary fuel levy surcharge on freight-inclusive pricing, plus GST, as published by BGA. Contact TFB Trading for your specific account rates.