18 May 2026
Fuel Levy Update – 18th May 2026
The unprecedented rise in fuel costs has impacted freight significantly since late February. With margins thin and distances long in the agricultural ingredient supply chain, TFB Trading has chosen to separate out the fuel levy surcharge rather than rebuild base pricing every fortnight. This week, with carrier rates continuing to ease, TFB has chosen to absorb the levy entirely for Sydney, Adelaide and Melbourne customers. Brisbane and Perth carriers still attract a surcharge — both reduced again this fortnight — and we continue to pass those through transparently.
18 May update — three routes absorbed by TFB, two reduced further. Sydney, Adelaide and Melbourne carriers still publish a fuel levy (36.56% / 36.56% / 34%) but TFB has chosen to absorb the full amount for these routes this fortnight — customers will see $0 surcharge on invoices. Brisbane has reduced from $33 to $19/pallet (a $14 weekly improvement); Perth has eased from $61 to $57/pallet. The trend remains downward.
The trend at a glance
Eleven fortnightly periods of carrier-published fuel levy rates, charted below. Brisbane, Sydney and Adelaide share the same carrier schedule (so they sit on the same line); Perth has its own. Note: Sydney and Adelaide carriers still publish a 36.56% levy rate this week, but TFB has chosen to absorb that cost rather than pass it through — these customer invoices show $0 surcharge. Brisbane and Perth surcharges continue to flow through to invoices as normal.
Bean Growers Australia — for comparison
BGA’s extraordinary fuel levy surcharge has also fallen materially this week — down approximately 20–23% across all four destinations versus 11 May. The picture is consistent with the TFB carrier moves but at a higher absolute level (BGA’s surcharge is applied to freight-inclusive pricing rather than to a base freight component).
Medium-term risks that aren’t in today’s prices
The current carrier review settings reflect today’s terminal gate diesel prices, not what is coming. Three specific risks are visible on the calendar and in the supply chain but are not priced into the current levy:
⚠️ The risks visible from here
- 30 June excise cliff (6 weeks away). Federal fuel excise relief (26.3¢/L) and the zero HVIC concession both expire on 30 June. Without an extension, retail diesel steps up roughly 26¢/L overnight on 1 July — about a 10% wholesale jump that flows into freight levies within a fortnight.
- European summer demand spike (June–August). Asian refineries that supply Australia (Singapore, South Korea, Malaysia) face tightening margins as European driving season kicks in. HVIA flagged this as the next supply-side risk in its 1 May briefing.
- Strait of Hormuz still fragile. Iran declared the strait open on 18 April, but Reuters reported tanker traffic remains well below pre-war levels. Treasurer Jim Chalmers warned this week that a protracted Middle East conflict could keep oil prices elevated until 2029.
None of these are reflected in current rates. The 30 June cliff in particular is a known event that will move levy percentages back up within one or two fortnightly reviews after 1 July, unless extended. Plan for that.
This week’s sources
- ACCC weekly fuel price monitoring report, 8 May 2026 (link)
- PM&C Fuel Supply Taskforce — public information, updated 8 May 2026 (link)
- HVIA Fuel Security Update, 1 May 2026 (link)
- BP Terminal Gate Pricing (link) · AIP TGP data (link)
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.