Fuel Levy Updates – 20th 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 sharply 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. Retail diesel has fluctuated between 240¢ and 320¢ through April as the base fuel cost remains highly volatile. The Gasoil benchmark fell US$24/bbl in the most recent week, and retail diesel appears to be easing toward approximately 275¢/litre by 20 April.

National Diesel Price (cents/litre)

The base fuel cost is doing most of the work. From 1 April, the Federal Government halved the excise from 52.6¢ to 26.3¢/litre and reduced the HVIC to zero — both temporary to 30 June. The dashed lines show what diesel would cost without this relief. While the 20 April figure shows some easing from the 13 April peak, the underlying base fuel cost remains at approximately 224¢/L — nearly three times the pre-crisis level of around 79¢/L in late February.

Freight Cost by Destination — Levy % Trend

Brisbane, Sydney and Adelaide share the same carrier levy percentage, so they are grouped below. Perth and Melbourne each follow a different schedule. The line charts track the levy rate across seven fortnightly periods since end of February. The dollar surcharge shown is the additional cost per pallet compared to end of February.

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. The pattern has been volatile — rising sharply through March, easing briefly in early April, spiking again on 13 April, and now easing on 20 April as the Gasoil benchmark pulls back.

Perth is the outlier this period, with its levy jumping to 48.1% (from 42%) driven by carrier pricing on that longer corridor. Despite the government’s temporary excise halving, underlying fuel costs remain elevated and volatile. Without the excise relief, retail diesel would currently be around 340¢/litre.

The levies are reviewed fortnightly. The excise relief expires on 30 June 2026. 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.

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.