The Australian Retail Council (ARC) has welcomed the Federal Government’s decision to provide targeted relief to businesses and households through fuel and transport cost measures.
Following ARC’s call for a temporary reduction in diesel excise, the Government has moved to halve the fuel excise on petrol and diesel and pause the heavy vehicle road user charge for three months.
ARC CEO Chris Rodwell said the measures are a practical and timely step that will provide immediate relief to retailers facing sharp increases in freight and logistics costs, while also easing pressure on household budgets.
“The Government’s decision to halve fuel excise and suspend the heavy vehicle road user charge will ease pressure across retail supply chains. This is critical given more than half of retailers are experiencing increases in freight and shipping costs of more than 10 per cent,” Mr Rodwell said.
“The cut will make a meaningful difference in the short term, particularly for small retailers. It is important that we stay alert to other options to support retailers and households. Almost all retailers (96%) anticipate supply chain challenges will intensify if this conflict is protracted.”
The changes, which take effect next Wednesday, are expected to reduce fuel costs by around 26 cents per litre.
Mr Rodwell said efforts to improve fuel security and reduce the fuel excise cut are important steps, but broader action is needed to address structural cost pressures.
“There is a clear need to improve supply chain resilience. We also need to deepen efforts to reduce the overall cost of doing business. That includes tackling regulatory complexity, easing compliance burdens and improving productivity across the economy,” he said.
“The upcoming Federal Budget is a critical opportunity to get this right.”