Road Transport Contractual Chain Order (RTCCO) – Important Update
The Fair Work Commission (FWC) issued a statement on Friday, 19 June 2026 confirming that the obligations under the fuel recovery order have ceased to apply effective 7 June 2026. This follows the national average terminal gate price (TGP) for diesel falling below $2.00 per litre for the weeks ending 7, 14 and 21 June 2026.
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What this means for Suppliers:
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The fuel-related adjustment mechanism set out in the FWC Order is no longer operative from 7 June 2026.
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Suppliers can no longer rely on the FWC Order as a basis for applying fuel-related price increases.
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Procurement Australia has requested confirmation from suppliers that any fuel-related adjustments applied under the Order have been reversed.
While the FWC has confirmed that the obligations under the Order have ceased, the Order itself has not been revoked.
Procurement Australia will continue to monitor developments and will provide further updates as they arise.
Frequently Asked Questions
Some suppliers are adjusting prices due to rising fuel costs. We are working with them to confirm whether these increases align with the RTCCO and reflect actual fuel‑related expenses.
Procurement Australia will notify members of any supplier price changes. Each member should assess whether the proposed adjustment is suitable for their organisation.
Not necessarily. The RTCCO will be reviewed after one month and then every three months. It will cease once the weekly average national terminal gate price for diesel (as reported by the Australian Institute of Petroleum) falls below $2.00 per litre. We are also seeking confirmation from suppliers that any fuel‑related adjustments will be fully reversed when fuel prices fall.
Different products have different levels of exposure to fuel costs. Suppliers must demonstrate how any increase applies specifically to the products affected.