BULLETIN : FUEL SURCHARGE INCREASES

Fuel Market Update – Impact on Transport Costs

Since the escalation of the Middle East conflict on 28th February 2026, global crude oil prices have risen sharply, triggering immediate reactions in diesel markets worldwide. As Australian diesel pricing is directly linked to global supply, these increases have flowed through to the local market very quickly.

The Strait of Hormuz handles approximately one-fifth of the world’s oil trade, with around 84% of this volume destined for Asian refineries that supply markets including Australia. Most of Australia’s refined fuel is sourced from refineries in South Korea, Singapore, Malaysia, Taiwan, Brunei, India, and Japan, many of which rely heavily on Middle Eastern crude as their primary feedstock.

With trade through the Strait currently disrupted, the risk to fuel supply chains servicing Australia has increased significantly.

Wholesale diesel prices have surged from approximately A$130 to A$220 per barrel within a matter of days, while retail diesel prices have increased by around 19 cents per litre. Such rapid movements leave transport operators with little capacity to absorb the additional costs.

As a result, trucking companies, shipping lines, and airlines globally have increased fuel surcharges across their services to offset these sudden increases.

In line with these industry-wide changes, we are unfortunately required to apply increased fuel surcharges to shipments to reflect the additional costs being passed on to us by our transport partners and suppliers.

Given the current volatility in global energy markets, these surcharges are expected to remain in place for the foreseeable future and may fluctuate in response to ongoing market conditions.

The current Fuel Surcharge will increase to 35% with immediate effect.