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Fuel price hike turns a profit into a loss for owner operator

Locked into a rate with a client, an emotional truckie speaks with Big Rigs about how fuel price hikes have turned a small profit for his regular journey into a loss.

Rising fuel costs have been impacting transport operators for some time, but the latest massive price increases, which occurred so swiftly, are having an even more profound impact on operators all over the country.

Many owner operators, who had been struggling to run their business with modest earnings, have been especially hard hit.

This small owner operator, who I met at a roadhouse, says his fuel costs for a long interstate trip have now increased by a whopping $1000.

This truckie was going to talk to his client about a rate increase but was sensitive about it, because he realised the client would be facing similar financial pressures due to the fuel issue.

But like every road transport operator, he has to pay the bills which include many off shoots such as higher prices for food.

We spoke about how the price of diesel had dropped to around $1 a litre two years ago due to Covid when there was a general lower demand for fuel. Now we’re seeing prices exceed $2 a litre.

This operator estimates his overall costs will increase by about 25 per cent.

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