As of midnight on 3 August 2026, Australia’s temporary fuel excise relief came to an end, resulting in fuel excise returning to its ordinary rate. While motorists are likely to experience upward pressure on retail fuel prices over coming weeks, the conclusion of the excise relief does not automatically trigger obligations under the Road Transport Contractual Chain Order (RTCCO).
Instead, the RTCCO operates by reference to wholesale fuel pricing. Specifically, the fuel cost recovery provisions are activated when the weekly average national terminal gate price for diesel reaches or exceeds $2.00 per litre, as published in the Australian Institute of Petroleum’s weekly diesel price report. The terminal gate price represents the wholesale cost of diesel supplied into the market and is the benchmark adopted by the Fair Work Commission to determine when increased fuel costs should be passed through the road transport contractual chain. It is distinct from the retail price displayed at service stations and should not be confused with the amount motorists pay at the fuel bowser.
The practical effect of the return of the full fuel excise is that wholesale fuel prices may increase, making it more likely that the RTCCO threshold will be reached if market conditions continue to place upward pressure on diesel prices. Where the threshold is met, parties within a road transport contractual chain may become subject to the RTCCO’s fuel cost recovery requirements, which are designed to ensure that increased fuel costs are appropriately passed through the contractual chain rather than being absorbed by transport operators, owner-drivers or other regulated workers. The Order allows this to occur through mechanisms such as adjusted rates, fuel levies, direct reimbursements or existing contractual rise-and-fall clauses that satisfy the Order’s requirements.
For businesses operating within the road transport industry, the end of the fuel excise relief serves as a timely reminder to review existing transport contracts and fuel adjustment mechanisms. While the restoration of excise alone does not enliven the RTCCO, any resulting increase in the national terminal gate price may do so, requiring businesses throughout the contractual chain to promptly adjust payment arrangements in accordance with the Fair Work Commission’s requirements.