Fuel Price Changes & Freight Costs
I’ve heard fuel prices are being reduced. Why aren’t freight costs going down?
While there has been a reduction in fuel excise (tax), the underlying fuel price has risen and substantially eroded the benefit of the reduction in the fuel excise. That’s why none of us are seeing a decrease in freight costs at this point.
Aren’t freight companies getting other big savings from fuel tax cuts?
Not to the same extent as the general public. As advised by our freight providers, freight companies receive a much smaller benefit, around 5.7 cents per litre, compared to 26.3 cents per litre for consumers. This reflects the differences in how taxation works for businesses versus the general public.
Have these savings already been passed into pricing?
Yes. These savings are reflected in the current rates charged by freight providers.
Could freight costs go down in the future?
Possibly and we hope so. There are some additional government decisions being considered that could provide further relief. We will pass through any further reductions should they arise.
What will happen if costs do decrease?
We’re monitoring the situation closely and will pass on any meaningful cost savings if they come through.