Truckies and the Fuel Crisis: New Fair Work Protections and What Drivers Are Owed

Australia's trucking industry is in crisis. Diesel prices have surged 40.1% since late February 2026, driven by the Iran conflict and disruptions to the Strait of Hormuz. As of late March 2026:

• National average diesel price: approximately 295.8 cents per litre
• South Australia has breached the $3/litre barrier (300.4c/L average — most expensive in the country)
• BP terminal gate price in Sydney: 299.25c/L
• Regional and remote areas are seeing prices above $3.20/L

Fuel accounts for 20–30% of total road freight operating costs. For an owner-operator running a B-double that burns 50-60 litres per 100km, a single Sydney-to-Melbourne run now costs over $1,300 in fuel alone — up from roughly $900 six months ago.

Transport fuel surcharges have increased 7.5–10% across the board since 11 March 2026, but industry groups warn this isn't enough. The Australian Trucking Association (ATA) has flagged that many businesses will struggle to pay fuel invoices landing on 21 April 2026, risking significant supply chain disruptions.

On 24 March 2026, the federal government announced it is amending the Fair Work Act to allow truck drivers and road transport businesses to make emergency applications for contract chain orders — removing the previous six-month waiting period.

What does this mean in practice?

• Contract chain orders allow the Fair Work Commission to require the companies at the top of the supply chain — retailers, miners, manufacturers — to ensure fair pay and conditions for contracted transport workers
• Previously, drivers had to wait six months before applying for these orders. The amendment allows immediate emergency applications
• This means if a major retailer is squeezing a transport company on rates while diesel is at $3/litre, drivers and transport businesses can go straight to the FWC

The amendment is backed by the Transport Workers Union (TWU), the Australian Road Transport Industrial Organisation (ARTIO), and the ATA — a rare show of unity between unions and employer groups that signals just how severe the crisis is.

Context: terminal gate diesel has risen from approximately 166c/L to 295c/L due to the Iran situation. The government is treating this as an economic emergency for the transport sector.

Truck driver pay in Australia varies significantly depending on whether you're employed or an owner-operator, the type of vehicle, and the routes you run.

Employed drivers:

• Average salary: $75,000–$85,000 per year
• Average hourly rate: $29–$37/hr depending on the award, experience, and vehicle class
• The Road Transport and Distribution Award 2020 sets minimum rates by vehicle type and driver grade
• Long-haul drivers with HC/MC licences on interstate routes can earn $90,000–$110,000+ including overtime and allowances

Owner-operators:

• Gross contract revenue: $90,000–$135,000+ per year
• But this is gross, not net. After fuel, insurance, maintenance, registration, and truck repayments, many owner-operators are now earning less than employed drivers on an hourly basis
• At current diesel prices, fuel alone can consume 40–50% of an owner-operator's gross revenue on some routes

The fuel crisis is hitting owner-operators hardest. Many signed contracts with fuel price assumptions that are now wildly out of date, and renegotiating mid-contract is difficult without the new emergency contract chain order provisions.

In response to the crisis, Australia's two largest supermarket chains have shifted their transport fuel levy reviews from monthly to fortnightly. This means the fuel surcharge component of freight contracts is adjusted more frequently to reflect actual diesel prices.

Gig delivery platforms have also responded: DoorDash and Didi have introduced per-kilometre fuel surcharges for delivery drivers.

However, many smaller transport companies and subcontractors are locked into fixed-rate contracts with businesses that have been slower to adjust. If you're a driver or operator in this position, the new emergency contract chain order provisions may be your best avenue for relief.

Whether you're an employed driver or an owner-operator, here's what you should be doing:

• Check your award or enterprise agreement: if you're employed, make sure your base rate matches the Road Transport and Distribution Award 2020 minimums. Many drivers are underpaid and don't realise it
• Review fuel surcharge clauses: if you're an owner-operator, check whether your contract includes a fuel adjustment mechanism. If it doesn't, or if it uses outdated price benchmarks, this is the time to renegotiate
• Contact the TWU: the Transport Workers Union is actively supporting drivers through the crisis and can assist with contract chain order applications once the amendment passes
• Document everything: keep records of your fuel costs, kilometres driven, and payments received. If you end up needing to make a claim — whether for underpayment or through a contract chain order — documentation is critical
• Check your super: owner-operators who are genuinely independent contractors don't receive employer super contributions. But if you're a contractor in name only and are actually an employee (sham contracting), your principal must be paying your super at 12%

Use our calculators below to check your pay rate and super entitlements.