Fuel Levy Updates as at 13th 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. Despite this relief, retail diesel has climbed back to approximately 310¢/litre by 13 April as the underlying base fuel cost continues to rise sharply.

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 temporary measures to 30 June. This government relief masks the severity of the underlying fuel price increase. The base fuel cost has risen from 183¢/L on 30 March to approximately 256¢/L by 13 April — a 40% increase in the underlying commodity price in just two weeks. Without the excise relief, retail diesel would currently be approaching 375¢/litre.

Freight Cost by Destination — Trend

Each chart below shows how total freight cost per tonne has escalated across six 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 59.2%

Brisbane has returned to the 30 March peak of 59.2%, adding $71 per tonne since end of February. The brief easing on 7 April proved short-lived.

Perth (base $372/t) — current levy 42%

Perth, which had held at 40% for three consecutive periods, has now increased to 42% — adding $52 per tonne since end of February.

Sydney (base $143/t) — current levy 59.2%

Adelaide (base $130/t) — current levy 59.2%

Sydney and Adelaide have returned to 59.2% — matching the 30 March peak. The brief easing on 7 April has fully reversed.

Melbourne (base $42/t) — current levy 38%

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 has now added $71 per tonne since end of February — returning to the 30 March peak after a brief easing on 7 April.

Despite the Federal Government’s temporary halving of the diesel excise and removal of the HVIC, underlying base fuel costs continue to rise sharply. The excise relief is masking what would otherwise be record retail diesel prices approaching 375¢/litre.

The levies are reviewed fortnightly. 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 13 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.