As of 1 July truck operator can expect to pay 10.4% more for fuel. This added to the increased truck and trailer registration charges may have a crippling effect on many transport companies who do not adjust the operations accordingly. According to the experts this will involve adjusting their freight rates and surcharges.  This post on tandlnews.com.au explains the increases further: The fuel tax credit that can be claimed by trucking operators decreased 2.4 cents per litre, from 15.043 to 12.643 cents per litre on 1 July. As a result, the effective fuel tax paid by trucking operators increased 10.4 per cent, from 23.1 to 25.5 cents per litre. The reduction in the fuel tax credit rate has legal effect, despite the Federal Coalition’s decision to move a disallowance motion against the measure in Federal Parliament. The Coalition gave notice of the motion on Tuesday 26 June, but it does not need to be voted on until 18 September. The new fuel tax credit rate will only change if the motion is passed. Many truck and trailer registration charges increased at the same time, with some state governments increasing some charges by more than 30 per cent. Sunday 1 July also saw the introduction of the Australian Government’s carbon tax. Although trucking businesses will not pay carbon tax on the fuel they use on public roads until 1 July 2014, they will face increased costs straight away as their suppliers increase their prices. Trucking businesses should review their costs and freight rates as a result of the carbon tax and the 2.4 cents per litre increase in their fuel tax, the chief executive of the Australian Trucking Association Stuart St Clair said. Although trucking businesses will not pay carbon tax on the fuel they use on public roads until 1 July 2014, they will still face increased costs from 1 July 2012 as their suppliers increase their prices. “Like every other business, trucking businesses should review their costs and make a judgement about whether they are likely to increase as a result of the carbon tax. With just one month to go before the introduction of the tax, it’s time for every trucking business to talk to their accountant or go over their books,” Mr St Clair said. “The tax is likely to have a particularly large impact on trucking businesses that operate cold stores, because electricity typically accounts for about 30 per cent of their costs. “In New South Wales, electricity prices are set to rise 16 per cent on average, with nine percentage points of the increase coming from the carbon tax. Businesses will need to take this cost increase into account, as well as the substantial increase expected in the cost of refrigerants. “Trucking businesses offering intermodal services will also face cost rises, with Pacific National imposing a 1.34 per cent carbon cost surcharge and the Spirit of Tasmania ferry service imposing a 2.04 per cent surcharge.” Mr St Clair said trucking businesses would also face a 2.4 cents per litre increase in their effective fuel tax from 1 July 2012. Many registration charges will also increase. “The fuel tax and registration charge increases will cost a typical owner-driver about $2,800 per year. For a trucking business with ten prime movers and semitrailers, the cost increase is likely to be about $41,800 per year. “Every trucking business needs to talk to its customers about increasing freight rates or adjusting their fuel surcharges. It’s a hard ask, but the industry’s customers need to understand that our costs are going up and we cannot absorb them,” he said. But what effect will this have of truck safety? There is the chance that an increase in fuel costs will mean that truck operators have less money available to spend on safety. An increase in fuel means that in order to make more money truckies might be forced to speed or drive while fatigued in order to meet deadlines and get more loads done in a limited amount of time. Some truckies may even use drugs in order to keep energised and driver long and unrealistic hours. As suggested in the article, a possible solution would be for operators to increase their rates, however this may cause a lot of smaller operators to lose customers. Regardless of whether or not fuel increases have a crippling effect on businesses, safety must always come before productivity. Operators need to keep in mind that you can’t put on a price on human lives.