Fortnightly ALC Government Relations Update No.9 16 May to 28 May 2026

ALC met with Anthea Harris, Fuel Taskforce Coordinator in the Department of the Prime Minister and Cabinet, to discuss diesel prioritisation, fuel disruption planning and the role of freight transport and logistics in national resilience.

ALC reinforced the scale of its membership across the end-to-end supply chain, noting that its membership gives the government direct access to senior industry leaders who operate the systems that keep goods moving across Australia.

The central message from ALC was that diesel is a fundamental economic enabler. It underpins road freight, rail freight, ports, harbour towage, stevedoring, distribution centres, cold chain, agriculture, construction, emergency response and the movement of essential goods. While electrification is progressing in parts of the urban task, diesel remains critical for regional, long-haul, heavy vehicle and industrial supply chains.

ALC proposed that any prioritisation framework should be considered through three connected layers:

• System continuity: keeping the national freight transport and logistics system operating.
• Network functionality: protecting the practical enablers of freight movement, including ports, terminals, towage, road, rail, warehousing, cold chain and workforce.
• Economic and social continuity: identifying the supply chains most critical to the community, including food, health, fuel, agriculture, defence and emergency response.

ALC also cautioned against narrow definitions of "essential" and "non-essential" freight. Many goods have multiple uses, and freight is often consolidated. ALC also argued that fuel resilience should not be treated only as an emergency issue — Australia should have standing arrangements that recognise freight transport and logistics as essential economic infrastructure.

ALC has also offered to convene senior industry leaders quickly if the government needs to test proposals or understand practical impacts across the end-to-end supply chain.

Current position

Australia's fuel supply has held through the current disruption, but the market remains under pressure. Around 80 per cent of the fuel used in Australia is imported as refined products. Disruption in the Middle East quickly affects Australian supply chains, because crude from the region feeds refineries across North and South Asia, which are key sources of Australia's refined petrol, diesel and jet fuel.

Diesel prices and operating pressure

The Singapore benchmark diesel price moved from around 82 cents per litre before the conflict to a peak of about $2.33 per litre in early April. Australian retail diesel prices reached around $3.19 per litre in mid-April before easing to around $2.36 in the week before the session. For operators, this continues to affect cash flow, contract performance, fuel surcharge arrangements and customer pass-through.

Supply chains have adapted, but risk remains

Approximately 50 tankers were at sea at the time of the session, bringing close to 4 billion litres of fuel into Australia. The current position is better described as fragile stability. Even if the conflict eases, the supply chain will take time to reset.

Strategic reserves and stockholding

Additional reserves can improve national resilience, but they are expensive, complex and slow to build. Storage must be aligned to demand — fuel held in the wrong place, or in volumes that cannot be turned over through the local market, adds cost without necessarily improving resilience.

What this means for ALC members

The National Heavy Vehicle Regulator has published the National Class 3 Road Train Prime Mover Mass and Dimension Exemption Notice 2026 (No.1). The notice commences on 1 June 2026 and expires on 31 May 2031.

The notice provides exemptions from specified vehicle length and steer axle mass requirements for eligible road train prime movers and combinations. The notice applies in: Australian Capital Territory, New South Wales, Queensland, South Australia and Victoria.

The notice allows the following steer axle mass limits:

• 6.5 tonnes for a steer axle with tyres at least 295mm wide
• 7.1 tonnes for a steer axle with tyres at least 375mm wide

The notice also sets the following maximum lengths:

• 19.0 metres for a road train prime mover towing an unladen converter dolly
• 20.0 metres for a road train prime mover towing a compliant semitrailer
• 26.0 metres for a road train prime mover towing a compliant semitrailer and an unladen converter dolly
• 27.0 metres for a road train prime mover towing two compliant trailers as a B-double combination

Eligible vehicle and livestock carriers may operate up to 4.6 metres in height where the notice conditions are met. Victoria does not apply Higher Mass Limits under this notice.

Members operating eligible vehicles should review the notice, the relevant jurisdictional schedule and the NHVR operator guide before relying on the exemption.

The NSW Government has announced a targeted fuel security round through the Investment Delivery Authority, with Expressions of Interest opening on 1 June 2026. The round will focus on commercial-scale projects valued at $100 million or more that improve fuel security, including fuel storage and distribution infrastructure, domestic liquid fuel production, renewable fuel and feedstock projects, and heavy electric vehicle charging hubs and fleets.

The Government has also confirmed it will expand the NSW Renewable Fuel Scheme to include low-carbon and renewable liquid fuels, including sustainable aviation fuel, renewable diesel and biodiesel.

For freight transport and logistics operators, the announcement is relevant to fuel storage, distribution capacity, port and industrial land use, renewable fuels, heavy vehicle charging infrastructure and future fuel resilience planning.

Read more here ›

Weekly Australian Government Fuel Security Roundtable scheduled.

Ongoing weekly briefing.

Ongoing weekly briefing.

Ongoing weekly briefing.

The Australian Government has continued its engagement with transport industry representatives on fuel supply, pricing and scenario planning. The current position remains stable, with average diesel prices easing to around $2.31 per litre and petrol averaging around $1.86 per litre. Fuel stockholdings remain steady, with reported coverage of approximately 43 days for petrol, 38 days for diesel and 31 days for jet fuel.

Pricing remains the main pressure point. While supply settings are stable, industry continues to note that prices can change quickly and that higher fuel costs are still being felt across freight, logistics, aviation, public transport and regional operations.

Government and industry are continuing scenario planning for later stages of the fuel security response. This includes demand management, industry communication and the operational consequences of any future movement between response stages.

ALC's focus remains on protecting critical freight movement and maintaining national supply chain capacity. Demand reduction should not be mistaken for freight reduction. Any response to fuel disruption needs to reduce avoidable fuel use while keeping essential goods moving across road, rail, ports, airports, intermodals, depots, warehouses and regional networks.

There are practical concerns about the transition out of current relief settings. Operators are seeking clarity on how fuel excise and road user charge relief may be managed if prices continue to moderate. A sudden change in fuel cost settings could create immediate cash flow pressure, particularly for small- and medium-sized road freight operators already operating on tight margins.

ALC will continue to press for freight transport and freight logistics to be recognised as essential to any fuel security or prioritisation framework. ALC will also continue to advocate for longer-term resilience measures, including greater use of freight rail, improved intermodal performance, electrification pathways and renewable diesel for harder-to-electrify freight tasks.

The Australian Logistics Council attended the Road Transport Industry Sham Contracting Roundtable hosted by Senator Glenn Sterle and the Senate Rural and Regional Affairs and Transport Legislation Committee. The roundtable brought together government, regulators, enforcement agencies, unions, road transport associations and industry representatives.

ALC joined discussions with Senator Sterle, the Hon Daniel Mulino MP, the Hon Melissa Horne MP, the Australian Taxation Office, National Heavy Vehicle Regulator, Fair Work Ombudsman, Australian Border Force, ARTIO, VTA, TWU, NatRoad, ATA, QTA, NRFA, Road Freight NSW and other industry participants.

Discussion focused on the distinction between legitimate contracting arrangements and sham contracting; current offence provisions; reasonable belief; enforcement pathways; penalty settings; ABN misuse; market failure; labour exploitation; and the role of the shadow economy in road transport.

For ALC, this issue directly affects the integrity and sustainability of Australia's freight transport and freight logistics sector. ALC will continue to advocate for sensible, practical measures that raise standards, support compliant operators, strengthen confidence across the road transport industry, and ensure the protection and safety of all people.

ALC participated in an industry consultation workshop facilitated by the Department of Infrastructure, Transport, Regional Development, Communications and the Arts on fuel demand, diesel use, and freight system resilience.

The workshop considered how government and industry would respond in a constrained fuel supply environment. ALC's contribution was that fuel security should be considered as an end-to-end supply chain issue, not as a question of individual trucks, trains, buses or ports.

A key theme was the difficulty of separating "essential" and "non-essential" freight in practice. Many goods have multiple uses, essential products may sit behind other freight in the network, and containerised freight does not always provide full visibility of what is inside each box.

The discussion also considered opportunities to improve diesel efficiency: greater use of existing freight rail capacity where practical; temporary access improvements for high-productivity vehicles; relief from curfews and delivery window restrictions; faster use of access notices rather than individual permits; better use of telematics; and more efficient movement through ports, terminals and intermodal facilities.

ALC noted that many of these issues have already been identified through the National Freight and Supply Chain Strategy. In the current context, those agreed productivity measures should be reviewed through a fuel security lens, with priority given to actions that can be delivered quickly and materially reduce diesel use while protecting freight capacity.

Transport for NSW has confirmed that work continues to identify the fastest, practical pathway to restore traffic access through the Great Western Highway causeway. Two companies have now progressed to the next stage and have been asked to finalise their proposed design and delivery timelines over the next four weeks. The NSW Government is aiming to have greater certainty by the end of June on both the preferred rectification solution and the likely timeframe for reopening the corridor to traffic.

The two shortlisted companies have also been challenged to examine whether one lane of traffic could remain open during construction, allowing controlled traffic movements while works proceed.

Freight transport impacts

Members again raised the practical impact of the closure on freight movements, including extended travel times to Orange and the surrounding areas. Operators reported that trips are taking at least an additional hour each way, affecting productivity, driver scheduling and the ability to complete planned daily movements.

Industry also raised concerns about enforcement activity in the corridor. Transport for NSW acknowledged those concerns and indicated that it would raise the feedback with NSW Police and the NHVR.

Safety and enforcement

NSW Police have maintained a significant presence in the corridor since the closure commenced in early March. Police vehicles have travelled approximately 24,000 kilometres along the relevant section. Around 468 infringement notices have been issued, including approximately 268 speeding fines. Early advice suggested approximately 10 heavy vehicles had been issued infringement notices.

ALC will continue to represent member concerns regarding freight access, practical enforcement, travel-time impacts, and the need for timely restoration of this important corridor.

ALC continued engagement with DITRDCA and relevant ministers on fuel prioritisation and supply chain resilience, and has offered to convene senior industry leaders quickly if the government needs to test proposals or understand practical impacts.

Development: Energy markets remain exposed to disruption through the Strait of Hormuz, with reporting on 26 May showing oil prices back above US$100 a barrel.

Why it matters: For ALC members, the risk is not only fuel price. It is whether shipping, ports, terminals, road tankers, rail links and last-mile distribution can keep fuel moving under pressure.

Implications for ALC advocacy: Fuel security settings must recognise freight transport and logistics as essential to keeping goods moving.

Further reading:

• The Guardian – Oil prices and energy markets
• IEA – Oil Market Report May 2026

Development: China continues to defend its rare-earth and critical-mineral export controls, with reporting suggesting little sign of easing despite recent high-level trade discussions.

Why it matters: Rare earths are used in fleet technology, automation, sensors, electronics, energy systems and advanced manufacturing. Export controls can affect equipment availability, procurement costs and project delivery.

Implications for ALC advocacy: A critical minerals policy must include the logistics capabilities needed to move, store, process, and export these materials.

Further reading:

• Modern Diplomacy – China defends rare earth export controls
• Benchmark Mineral Intelligence – Rare earth export controls
• Australian Government – Critical minerals strategy

Development: Australia joined APEC trade ministers in Suzhou on 22–23 May, where members discussed trade uncertainty, supply chain resilience, digital trade and regional economic cooperation. Australia also joined Canada and New Zealand in a statement supporting APEC's role in keeping trade open and rules-based.

Why it matters: For ALC members, this goes directly to the operating environment for importers, exporters, freight forwarders, ports, rail, road and intermodal operators. Open trade settings only work if goods can move efficiently across borders and through domestic logistics networks.

Implications for ALC advocacy: ALC can use this to reinforce that Australia's trade policy must be matched by practical logistics capability, including customs digitalisation, port performance, transport connectivity and resilient supply chains.

Further reading:

• DFAT – Australia, Canada and New Zealand statement on APEC Trade Ministers Meeting
• APEC – 2026 Ministers Responsible for Trade Joint Statement