Transport workers across Australia are set to receive a significant boost in fuel cost allowances, as the ongoing impacts of the Iran war continue to threaten their livelihoods. In a landmark decision, the Fair Work Commission has issued orders requiring companies within the transport sector to conduct bi-weekly reviews of their rates to account for the soaring costs of petrol and diesel.
Historic Ruling on Fuel Allowances
These new regulations will come into effect from Tuesday and will remain in place for as long as the weekly average price of diesel exceeds $2 per litre. The ruling emerged from a case submitted by the Transport Workers' Union to the workplace watchdog, marking a pivotal moment for the industry.
Transport Workers' Union Secretary Michael Kaine hailed the decision as historic, stating that it imposes obligations on wealthy clients at the top of supply chains to pay their fair share to the transport industry. He emphasised the dire circumstances faced by drivers and transport businesses, with many forced to park their trucks or rely on personal loans to stay afloat due to escalating diesel costs.
Refinery Recovery and Market Impact
Concurrently, the owners of the Geelong Viva refinery, which suffered damage in a fire on Wednesday night, have announced that the site is expected to return to nearly full capacity in the coming weeks. In a statement to the ASX, Viva Energy indicated that production of diesel, jet fuel, and petrol is set to ramp up to over 90% of capacity following plant inspections.
The refinery, which was operating at 60% output for petrol and 80% for jet fuel and diesel post-fire, is one of only two refineries in Australia. It supplies 10% of the country's fuel and 50% of Victoria's. Viva Energy has committed to a full investigation into the cause of the incident, and despite a trading halt after the fire, shares resumed selling on Monday, dropping by as much as 9.5% initially and settling around 7.7% lower by mid-afternoon.
Economic Support Measures
This development comes as freight and trucking firms gain access to interest-free loans starting Monday, designed to help them weather the price hikes in business operations. These loans are part of a $1 billion economic resilience program package, targeting businesses involved in making or transporting fuels, fertiliser, and agricultural products.
Prime Minister Anthony Albanese announced these concessions during a speech at the National Press Club earlier in April. Industry Minister Tim Ayres highlighted that the loans aim to provide stability during volatile economic times, with the facility available for use as needed. Companies with a turnover of less than $100 million can apply for loans of up to $5 million.
Industry and Banking Support
Australian Banking Association chief executive Simon Birmingham affirmed the financial sector's commitment to supporting the rollout of these zero-interest loans, noting that banks are stepping up to assist businesses struggling due to the current conflict in the Middle East. This collective effort underscores the broader economic challenges posed by global events, including the closure of the Strait of Hormuz, which has pressured global oil supply and prompted increased production at refineries like Viva.
As transport workers brace for continued uncertainty, these measures represent a crucial step towards mitigating the financial strain caused by rising fuel costs and geopolitical tensions.
