Fuel Levy Update – April 27th 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 is happening with 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. The retail price climbed back through mid-April as underlying base fuel costs stayed elevated, but has now begun to ease — international gasoil prices fell 18% in the week to 22 April, the largest single-week decline since the conflict began.

The chart below breaks down the AIP five-city average diesel price into its components: base fuel cost, excise, HVIC, and GST. 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 temporary measures to 30 June. This government relief continues to mask part of the underlying fuel price movements. The base fuel cost peaked at around 256¢/L on 13 April and has now eased back to approximately 207¢/L by 27 April as international gasoil prices have fallen sharply.

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 eight fortnightly periods since end of February.

The 27 April adjustment is the most material easing across all routes since the surcharges began climbing in late February. Brisbane, Sydney and Adelaide have moved from a peak of 59.2% on 13 April to 42.4% — back close to the 16 March level. Perth has eased from its 20 April peak of 48.12% to 42.04%. Melbourne has stepped down from 38% to 34%.

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.

Outlook

The levies are reviewed fortnightly. The excise relief expires on 30 June 2026. We’ll update this post if there’s a material change.

TFB Trading freight costs are per pallet, 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.