Truckies win fuel boost to fight dire price threat
There may be an increase in the amount transport workers receive to cover fuel costs as the effects of the Iran war threaten their livelihoods.
The Fair Work Commission has instructed companies in the sector to review their rates twice a month to account for the high costs of petrol and diesel.
The orders will come into force from Tuesday and will be valid as long as the weekly average diesel price is above $2 per liter.
The decision followed a case submitted by the Transport Workers Union to the workplace watchdog.
Minister Michael Kaine said the decision was historic.
“(The order) for the first time imposes an obligation on wealthy customers at the top of our supply chains to pay their fair share to the transportation industry,” he said.
“Over the past few weeks, drivers and transport companies have outlined the difficult conditions they are facing with diesel costs, with many already having to park their trucks or rely on personal loans to get on the road.”
The decision comes after the owners of Geelong’s Viva refinery, which was damaged by a fire on Wednesday night, said the facility was expected to return to near full capacity in the coming weeks.
In a statement to the ASX, Viva Energy said capacity would be increased at the facility.
“Within the next few weeks and subject to factory inspection, the company expects to be in a position to increase diesel, jet fuel and gasoline production to over 90 percent of capacity,” the statement said.
“The refinery is expected to continue producing at these levels until repairs are completed.”
After the fire, the refinery had 60 percent production in gasoline and 80 percent in jet fuel and diesel.
Viva promised a thorough investigation into the cause of the incident.
The company had ceased trading following the fire, but sales resumed on Monday morning.
Viva shares fell as much as 9.5 percent when it emerged from the halt and were down about 7.7 percent at $2.34 by mid-afternoon.
The Geelong facility is one of only two operating refineries in Australia and supplies 10 per cent of the country’s fuel supply and 50 per cent of Victoria’s fuel supply.
Production at the refinery was increased following the closure of the Strait of Hormuz, which put pressure on global oil supply.
Starting Monday, shipping and trucking companies were also able to apply for interest-free loans to help weather the price increases that come with doing business.
The loans were part of a $1 billion economic resilience program package and will be applied to businesses that produce or transport fuel, fertilizer and agricultural products.
The concessions were announced by Prime Minister Anthony Albanese during a speech at the National Press Club in early April.
Industry Minister Tim Ayres said the loans would provide stability during volatile economic times.
“The billion-dollar facility will be used as needed,” he told reporters in Canberra.
Loans of up to $5 million can be provided to companies with a turnover of less than $100 million.
Australian Banking Association chief executive Simon Birmingham said the financial sector would support the rollout of loans.
“Banks are stepping in to support the provision of these zero-interest loans to businesses that are struggling due to the current conflict in the Middle East,” he said.
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