fuel levycalculator
A transparent, data-driven fuel levy reference for Australian road freight — based on AIP diesel Terminal Gate Prices, updated every Friday.
60-month average · ex GST
Monthly levies are released on the 1st of each month using the prior completed month's average AIP diesel TGP. Weekly figures are a short-term trend indicator only and should not be used for billing purposes.
Enter a freight charge (ex GST) to calculate the recommended fuel levy dollar amount across all three freight types using the current official monthly levy.
After publishing version 1 we received feedback from transport operators across Australia. Two concerns came up repeatedly. Here is what we heard, what we considered, and what we changed.
What we heard: Using a 5-year average of all daily diesel prices places the base in the middle of the price range. By definition, roughly half of all trading days will sit below that average, producing a 0% levy. Transport operators told us this does not reflect commercial reality. Fuel is always a cost, and most carriers build in a levy even when prices are relatively low.
What we considered: We tested several approaches including using weekly minimums, longer historical windows, and different financial year combinations. The data showed that using weekly minimums over the same 5-year window produced almost no change to the base, because intra-week price movements are small in stable markets.
What we changed: We moved to a base calculated as the average of the lowest diesel price recorded in each calendar month from July 2018 to June 2023. This is 60 monthly minimums averaged together. The result is a base of $1.2698/L (ex GST), which is lower than the original $1.4037 and anchors the model closer to the realistic lower bound of Australian diesel pricing rather than the midpoint.
What we heard: Even with a lower base, there will be periods when diesel falls close to or below the base price and the formula produces 0%. Carriers told us this is not how the industry works. Fuel is always a cost component of every freight movement, and most operators maintain a minimum levy regardless of market conditions.
What we considered: A symmetrical model where the levy can go negative (a credit when fuel is cheap) is theoretically fair but commercially unworkable. Operators do not give fuel credits and customers do not expect them. A floor is both practical and honest.
What we changed: We introduced a minimum floor levy that applies whenever the formula result falls below it. The floor is 2% for local freight, 3% for regional, and 5% for interstate. These floors reflect the minimum fuel cost exposure of each freight type regardless of market price. When diesel rises and the formula produces a result above the floor, the formula applies as normal.
The floor percentages are deliberately modest. On a $1,000 freight charge, the interstate floor levy is $50. We chose numbers that are commercially meaningful without being aggressive. The floors are scaled by freight type for the same reason as the fuel cost factors: interstate linehaul is more fuel-intensive than local metro delivery, so the floor reflects that higher dependency.
They are not industry-regulated numbers. They are a considered judgment based on operator feedback and typical fleet economics. We would welcome further industry input on whether these levels feel right in practice.
The base period covers five complete financial years and includes a wide range of market conditions: normal pre-COVID pricing (2018-19), the COVID demand collapse (2020), the post-COVID recovery (2021), and the Ukraine-driven energy price spike (2022-23). Including this full cycle produces a base that reflects genuine long-term market variability rather than being skewed by any single period.
We excluded FY2023-24 and FY2024-25 deliberately. Those years saw sustained elevated diesel prices that, if included, would push the base higher and reduce the levy's activity during normal conditions. The base is designed to represent a long-term floor, not a recent average.
The base will be reviewed at the end of FY2026-27 and updated to reflect the following five-year minimum cycle.
No, and we want to be clear about that. Every operator has a different cost structure, fleet type, route mix, and customer base. This model is designed to be a transparent, data-driven reference point, not a one-size-fits-all solution. Some operators will have higher fuel exposure than these factors suggest; others will have lower.
What we offer is a methodology that is publicly documented, built on independent AIP data, and open to scrutiny. If you think something should be different, we genuinely want to hear from you. Use the contact details below or reach out via LinkedIn.
What the research says: Multiple independent sources, including Transport Intelligence, the Australian Trucking Association, and fleet industry publications, consistently estimate that fuel accounts for approximately 20 to 30% of total road freight operating costs across the industry. This range is widely cited and reflects the overall fleet mix of metro, regional and interstate operations combined.
Why the factors differ by freight type: The 20 to 30% range is a broad industry average that obscures meaningful differences between service types. Local and metro freight involves frequent stops, significant idle time in traffic, and high labour cost relative to kilometres travelled. In that context, fuel is a smaller share of total operating cost. Interstate linehaul involves continuous highway driving over hundreds or thousands of kilometres, with fuel becoming the dominant variable cost on each run. A B-double running Sydney to Melbourne at current diesel prices will burn roughly $900 to $1,300 in fuel on a single leg, which can represent 30 to 40% of the total operating cost of that movement.
Our specific factors: The local factor of 20% sits at the lower bound of the published range and is well supported by industry data for stop-start metro operations. The regional factor of 30% sits at the top of the published range, reflecting the greater distance dependency of regional freight. The interstate factor of 40% sits above the published average range and reflects the fuel intensity of dedicated linehaul operations. We acknowledge that 40% is towards the upper end and will not reflect every operator's experience, particularly those running lighter vehicles or shorter interstate corridors.
Our position: These factors are based on the best publicly available data we could find, combined with feedback from transport operators. They are designed to be directionally accurate for the freight types described, not to precisely match any individual operator's cost structure. If your fuel cost share differs materially from these figures, the methodology section explains how to interpret the levies in the context of your own operation. We welcome further industry data that could help refine these numbers in a future version.
Formula
Floor rule: if result < 0%, levy = 0% — no negative fuel levy is applied.
All diesel prices are sourced from the Australian Institute of Petroleum (AIP) national average Terminal Gate Price, in dollars per litre excluding GST. The official monthly levy uses the previous completed calendar month's average, released on the 1st of each month. The weekly figure uses the previous completed week's national average.
Base diesel price
The base price of $1.2698/L (ex GST) is calculated as the average of the lowest diesel Terminal Gate Price recorded in each of the 60 calendar months from July 2018 to June 2023. Using monthly minimums rather than monthly averages anchors the base closer to the lower end of the realistic price range, ensuring the levy is active during a greater proportion of normal market conditions. The base is reviewed every 3 years. Next review: end of FY2026–27.
Fuel cost factors
| Freight type | Rationale | Factor |
|---|---|---|
| Local / Metro | High labour, stop-start, low km/job | 20% |
| Regional | Mixed distance, moderate exposure | 30% |
| Interstate | High km, fuel is dominant cost | 40% |
A minimum floor levy applies regardless of diesel price: 2% local, 3% regional, 5% interstate. When the formula produces a result above the floor, the formula applies. When diesel prices are low or below the base, the floor ensures a minimum fuel cost contribution is always recovered.
Important notes
This tool provides Node Freight's recommended fuel levy — it is not a mandatory industry standard. There is no single regulated fuel levy in Australian road transport. This model is designed to be transparent, data-driven, and commercially defensible. All levies should be agreed between parties as part of freight contracts or rate schedules. Diesel TGP data sourced weekly from the Australian Institute of Petroleum. All prices exclude GST. © Node Freight Pty Ltd · Provided for reference purposes only and does not constitute financial or contractual advice.