Rising diesel costs push trucking industry toward electric future

Long-time transport operator Shirley Saywell has always taken a practical and optimistic view of the industry. However, the recent surge in diesel prices is forcing a rethink.

Saywell, who runs a fleet of eight semi-trailers from Euroa in regional Victoria, has seen fuel expenses increase dramatically—by roughly $400 to $500 per truck each day over the past month. The rapid rise has created serious uncertainty about the future of her business.

She says the situation is becoming unsustainable, with concerns not only about affordability but also the potential availability of fuel in the near future. If conditions continue, smaller operators like hers may struggle to keep running.

Saywell believes transitioning to electric trucks could provide a more stable and environmentally friendly alternative. However, she notes that the shift cannot be achieved by individual businesses alone. One of the biggest barriers is the lack of large-scale charging infrastructure, which requires significant investment beyond the capacity of small operators.

She argues that stronger government support is essential to accelerate the transition, particularly as other parts of the transport sector—such as passenger vehicles, buses, and rail—have already begun electrifying. Heavy freight, she says, remains behind.

This perspective is gaining traction across the industry. More than 20 organisations have recently called on the federal government to fast-track the adoption of electric trucks, with further discussions taking place at national freight events.

Meanwhile, companies are beginning to take action. New Energy Transport is developing an electric truck depot in south-west Sydney, aimed at supporting low-emission freight routes. The company’s leadership highlights that heavy trucks, while making up only a small percentage of total vehicles, are responsible for a large share of freight movement across the country. This makes them a key target for reducing emissions.

Recent trials have demonstrated the potential of electric freight. One electric prime mover completed a long-distance journey on a single charge, outperforming a diesel equivalent by maintaining speed on inclines and reducing travel time. Cost modelling also indicates that electric trucks can deliver overall savings, particularly as diesel prices continue to climb beyond $3 per litre in some areas.

Despite these benefits, the high upfront cost of electric trucks remains a challenge. Many small and medium operators require financial assistance to make the transition viable. Industry leaders are calling for government incentives, including subsidies and investment in charging infrastructure along major freight routes, to reduce these barriers.

Some governments have already taken steps in this direction. In Victoria, grants of up to $300,000 are available to support electric truck adoption and infrastructure. Internationally, similar incentives are being introduced to encourage the shift toward zero-emission freight.

Another approach gaining attention is retrofitting existing diesel trucks. Australian company Janus Electric has developed technology to convert conventional heavy vehicles into electric ones. The process can be completed within days and includes battery systems that can be swapped out quickly, reducing downtime.

Industry estimates suggest a large proportion of heavy vehicles could be converted using this method, particularly at the point when major components like engines are due for replacement. This could significantly speed up the transition compared to waiting for full fleet replacements.

Experts believe that a coordinated national strategy will be essential. Policy changes, infrastructure investment, and clear long-term direction are all needed to support businesses in moving away from diesel.

Beyond cost savings, the transition is also seen as critical for reducing emissions. Heavy transport is projected to become one of Australia’s largest sources of emissions in the coming years, making electrification an important step toward a more sustainable freight system.

Source: AAP This article is a rewritten summary based on publicly available reporting.