Operators doing it doing it tough in the fuel crisis can now apply for interest-free loans under the federal government’s $15 billion National Reconstruction Fund.
In other breaking news today, states and territories have agreed on a further 10.9 per cent cut to the fuel excise for three months, which is a further 5.7 cents per litre drop at the bowser.
Queensland Trucking Association (QTA) CEO Gary Mahon said the loan announcement today was a clear sign the government had listened to the concerns being raised by industry and responded to the real pressures facing road freight transport businesses.
“This is exactly the kind of support QTA has been advocating for, and we welcome the fact that government has listened to what our members need and what the industry needs to stay afloat, and give them time to balance their cashflows” Mahon said.
“Road freight transport operators are central to Australia’s ability to keep supply chains moving, shelves stocked and regional communities serviced.”
Mahon said QTA had already highlighted the seriousness of the issue on March 20, when it warned that soaring diesel prices were placing unsustainable pressure on operators and threatening business viability.
“We also made it clear that without an immediate fuel relief package, the transport supply chain risked grinding to a halt, placing the affordability, availability and reliable delivery of essential goods at serious risk for Australians – especially in regional and remote communities that depend so heavily on road freight.”
Mahon said the government’s support package was an important step in recognising the essential role of the road freight transport and agriculture industries in Australia’s resilience.
“Over the longer term, this must also be matched by investment in expanded refinery capability, greater fuel storage and the policies needed to buttress Australia’s sovereign capability, because supply chain resilience depends on fuel security.”
Mahon said further reform would still be needed to reduce cost pressures and strengthen the operating environment for transport businesses over the longer term.
“If the government is serious about growth, productivity and supply chain resilience, road freight transport industry must remain part of the solution,” he said.
Meanwhile, the further reductions in prices at the bowsers are expected to flow through in the coming days.
The extra 5.7 cents per litre reduction announced today was a result of states and territories agreeing to forgo the increase in GST revenue after the prices skyrocketed in the wake of the Iran war.
This will provide another $400 million of fuel relief, bringing the total reduction in excise on petrol and diesel to 32 cents per litre.
“This relief is already starting to show up in petrol prices and we expect more to flow through in the next one to two weeks,” Prime Minister Anthony Albanese said today.
“People are under cost-of-living pressure and a lot of that pressure is being piled on at the petrol pump due to the conflict in the Middle East.
“Giving back the GST windfall on fuel will help to further take the sting out of petrol price rises.”
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