The FWC fuel cost recovery order took effect today (21 April 2026) and was effectively unchanged from the draft published on 14 April
The cost pass-through implications for businesses across the supply chain are significant.
⛽ Primary and secondary parties in transport supply chains must adjust rates fortnightly to ensure operators recover increased fuel costs.
⛽ The fuel cost baseline is set at 6 March 2026.
⛽ The order ceases to apply if the weekly average national terminal gate diesel price falls below $2.00 per litre.
⛽ The order will be reviewed after one month and then every three months.
What this means for transport businesses
⛽ You now have an enforceable right to recover fuel costs from the party above you in the supply chain.
⛽ Adjustments must happen at least fortnightly via rate increases, fuel levies, direct reimbursements, or any combination.
⛽ Existing rise-and-fall contract mechanisms will satisfy the obligation.
⛽ If your contracts don't have fuel adjustment clauses, the conversation with your clients needs to happen now.
⛽ Application can be made to the The Fair Work Ombudsman if clients are not complying.
What this means for businesses relying on transport
⛽ Your transport costs are going up and need to be actively managed on a fortnightly basis.
⛽ If you are locked into fixed-price customer contracts with no pass-through mechanism, you are now the one absorbing the cost and its imperative that gets modelled into cash flow forecasts now. Councils have already flagged the order will cause budget pressure (particularly for rate-capped councils in Victoria and NSW).
⛽ If you want or need to pass on costs, start talking with your clients now.
While I can see the point of this order, all it really does is move the pain by shifting the cost pressure up the supply chain. It will protect small transport operators but pushes cost pressure onto other SME businesses and local governments that often have limited ability to adjust prices quickly.
The only glimmer of hope is that Diesel prices have been steadily declining over the last two weeks and if the crisis can resolve in the near future, to total impact should remain manageable for most businesses.