Fuel Prices - Find out how much it will cost you

by DCODE Admin Jun 20, 2022

As we've seen, fuel prices have raised from $1.80 per litre (Dec 21 average) to now $2.20 per litre for diesel, with the expectation of the cost to rise to $3.00 per litre in the coming 3 months.

How much extra should I allow for fuel, when quoting?

As we've seen, fuel prices have raised from $1.80 per litre (Dec 21 average) to now $2.20 per litre for diesel, with the expectation of the cost to rise to $3.00 per litre in the coming 3 months.

The tax on fuel, the fuel excise is currently 44.5 cents to the litre. Plus an additional 10 per cent in GST. Which both the Government collects.

Now is the time to register for GST if you haven't already, as you will not be able to claim the fuel excise rebate on GST  on heavy vehicles over 4.5T without it.

The rebate calculator can be found on the ATO website  here

The updates from our Prime Minister ~ " I will leave the government’s decisions for [the] budget to that night" as per the  guardian.com

The next Federal budge is March 29th 2022.

So, how much is considered fair?

We've completed some calculations on a basic route to provide you an example using our calculator:

A typical rigid truck, uses 28.6L per 100KM which is 3.5km to the litre.

But let's say you use more than that. And you just want to see the worst case scenario.

So thats 32L per 100km, which is just over 3.125KM to the litre.

(If a rigid truck uses any more than that, I'd be interested to know if you had a fuel leak!)

Ok, so lets look at the differences:

28.6Litres which is the average for a rigid truck calculations example below:

A 1,800 km trip one-way (Melbourne to Brisbane) in December averaged $1.80 per litre at 28.6L per 100 would cost you $926.64 before gst fuel credits.

The cost is now at approx. $2.20 per litre. Which equates to $1,132.56

The cost if increases to $3 per litre would equal $1,544.40

So what does that mean right now?

At the moment ($2.20) per litre you would need $205 each way to cover your diesel compared to December 2021. (Melb-Brisbane)

A trip Melb-Brisbane, you need an extra $600 each way to cover your diesel IF the price increases to $3.00 per litre. If you average 28.6L per 100 or 3.5Km to the 100L compared to December 21.

You will receive the GST fuel rebate on your fuel off your BAS statement if done correctly. (Hence why most operators opt for a fuel card to avoid chasing receipts). If you're not registered for GST now is the time to do it!

Ok, so let's look at a guzzler, if your rigid truck uses a massive 32L of fuel:

The cost is now at approx. $2.20 per litre. Which equates to $1,267.20. A 1,800 km trip one-way - Melbourne to Brisbane (32L)

The cost if increases to $3 per litre would equal $1,728.00 if your truck uses 32L

But, What did I pay in December if it was 32L my truck? $1.80 which = $1,036.00.

In this example: You would need an extra $700 each way from Brisbane to Melbourne or 1,800 KM distance in a rigid truck that is a guzzler.

So what does that mean for me now? How should I handle this?

Don't panic. Use the calculators to work out the real difference. Keep your receipts, work our your fuel costs.

Customers do expect to pay more, absolutely they do, but first you must work out your fuel costs so you can voice the true costs.You can use my example if you like.

As you can see above, a typical rigid truck extra fuel costs is able to be worked in without too much despair. Look at $3 per litre and work it back bit by bit and work out, if it goes up another 20c per litre, what will that cost me.

Don't forget your rebates with GST and also research business fuel discounts as they are available to trucking customers.

The next real update will come budget time or before.

I've always been an advocate for higher pricing. Doing the math will help you determine your bottom line, for each run you build.

Speak soon,

Katie

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