Australia Post has advised its contract customers its Fuel Surcharge will decrease by 7.2 percentage points from 1 July 2026, reflecting recent movements in fuel-related costs. The reduction applies to around 17,000 contract or “account managed” customers, representing around 6% of Australia Post’s business customers, and does not apply to MyPost Business or retail customers.
The StarTrack Courier Fuel Surcharge will also decrease from 19.5% to 12.3%, while the StarTrack Express and StarTrack Premium Fuel Surcharge will reduce from 30.2% to 23%.
The adjustment follows a period of significant fuel market volatility triggered by the conflict in the Middle East, which drove fuel costs sharply higher across the transport and logistics sector.
Speaking at Senate Estimates on 27 May, Australia Post Group Chief Executive Officer and Managing Director Paul Graham said, “Like many Australian businesses, fuel is an integral component of our operating costs, and is not a cost we can simply absorb.”
Mr Graham noted that Australia Post’s fuel costs increased from $35.7 million in February to $56.5 million in April, despite parcel volumes being significantly lower than the company’s peak trading period.
At the time, Australia Post said the fuel surcharge remained a temporary mechanism to recover a portion of increased fuel costs for larger contracted customers. “A fuel surcharge is a standard, industry-wide mechanism for recovering fuel costs from contract parcel customers that’s based on a rigorous formula, is externally benchmarked, and reviewed by our auditors,” Mr Graham said.
Mr Graham also emphasised that the surcharge only applies to a small proportion of customers. “I want to stress that 94% of our parcel customers are not subject to the fuel surcharge.”
With fuel markets beginning to stabilise, Australia Post has now reduced the surcharge in line with its established review process.
Addressing the reduction, Mr Graham said: “However, I am pleased to report there is some better news for fuel on the horizon – as we have seen fuel prices stabilise, remembering our surcharge is on a lag, tomorrow our July surcharge will reduce to 12.3%.”
Australia Post said it remains focused on maintaining competitive pricing while continuing to invest in its network and operations. As part of this strategy, the organisation is accelerating the electrification of its fleet, with a recent $40.5 million government investment expected to help reduce diesel consumption and lower operating emissions.
For more information on the updated fuel surcharge, please visit the Australia Post and StarTrack websites.
