Consumers across the South East are expected to pay more for delivery with trucking companies around the state reporting price increases of up to 40%.

The increased costs are due to a price rise in fuel costs, wages, superannuation and vehicle costs.

Trucking companies are pushing for the federal government to restore the fuel tax credit by July 1.

Fuel Tax Credits provide businesses who have purchased fuel for their business with a credit for the tax that is included in the price of fuel, offering truck operators 18 cents per litre.

South Australian Road Transport Association executive officer Steve Shearer said the Fuel Tax Credit would make a huge difference to keep a lid on the cost of living.

“In trucking our two biggest costs are wages and fuel which make up about 60-70% and they have both significantly risen,” he said.

“If they restore the Fuel Tax Credit it should flow through to the cost of transport and end product, providing some relief.

“In a recent survey we conducted 75% of trucking companies indicated they have not been able to recover the loss of the Fuel Tax Credit.

“It is a very stressful business environment at the moment for truck operators particularly the 65-75% of small to medium businesses.”

Another survey conducted by SARTA has stated that 92% of their truck companies said if the Fuel Tax Credit was restored from July 1 they would survive.

“We keep hearing of reports of businesses that have either closed or on the verge of closing, because they just cannot sustain it any longer,” Mr Shearer said.

“We believe from our figures that 57% of businesses will collapse if it is not restored.

“If only 20% shut down the impact would be worse than the supermarket shelves during the peak of COVID-19 supply issues.

“If 57% fold, it would basically shut down the economy causing absolute collapse.”