Fuel costs hitting aviation and road transport hard

Sharp Airlines has imposed a 5 percent fuel levy on airfares to and from the Bass Strait islands effective from Monday.

Managing director Malcolm Sharp said that the levy will be temporary, due to the recent rise in global oil prices, but will not apply to existing bookings.

The increase will add approximately $37 to a $743 return fare from King Island to Launceston.

No fares are currently available to Melbourne as the service winds back before its closure on April 30.

“Sharp Airlines remains committed to maintaining reliable air services and we appreciate the continued support and understanding of the community,” Mr Sharp said.

Conflict in the Middle East has disrupted key shipping routes such as the Strait of Hormuz, pushing up Brent crude oil toward US$98 per barrel in turn significantly increasing aviation fuel costs.

Diesel prices around the state are now averaging above $2.50 per litre and creating uncertainly in the agricultural sector along with supply disruptions to fertiliser.

On Wednesday King Island Mayor Marcus Blackie reassured residents that the island’s fuel supply remains secure and King Island Motors introduced a precautionary limit on fuel dispensed into portable containers to help maintain stable supplies across the community.

Service station owner Paul Lay said customers will be limited to one jerry can fill per customer per day with the exception of businesses and farmers.

The Tasmanian Transport Association has joined other industry peak bodies and representatives of fuel distributors in a round table discussion convened by Minister for Energy and Renewables Nick Duigan and hosted by the Premier of Tasmania Jeremy Rockliff, and Treasurer Guy Barnett.  

The purpose was to consider and discuss the status and security of fuel supply to Tasmania in the context of global uncertainty and pressure impacting fuel arising from the war in the Middle-East.

Key messages from the round table were that Tasmania’s fuel supply remains secure with ongoing monitoring, industry coordination, and there are no current shortages. 

Fuel prices have increased and the government has written to the ACCC seeking monitoring and action on any price gouging practices identified.  

The government also discouraged stockpiling and emphasized that fuel continues arriving as scheduled through established supply chains. 

International pressures are being managed, with Tasmania’s reserves and import sources deemed sufficient. 

Industry and government remain vigilant, ensuring fuel reaches communities without disruption.

TTA members and all road freight operators are affected by the increased costs and the executive is aware of members who are bringing forward fuel surcharge and contract reviews. 

It said road transport operators cannot absorb these increased fuel costs.