Government rejects towing industry plea as fuel crisis bites — operators get 2.3 per cent insult.
20 March 2026
Melbourne, VIC – The Victorian Automotive Chamber of Commerce (VACC) has warned that increased road congestion and longer incident clearances will be the direct consequence of the State Government’s inadequate fee increase for accident towing operators.
The Government’s 2.3 per cent adjustment, effective today, fails to address the mounting cost pressures facing operators who provide a critical 24/7 emergency response service under one of the most tightly regulated pricing frameworks in the state.
Accident towing fees in Victoria are set by the Government, with operators required to charge fixed, regulated rates for their services. Unlike most businesses, they cannot adjust prices in response to rising costs — including fuel — leaving them exposed when operating expenses surge.
With fuel costs rising sharply in recent months due to global oil price increases, many towing operators are now under significant financial strain, raising concerns about reduced fleet capacity across Victoria.
VACC had proposed a temporary, targeted fuel levy of $20–$30 per job to provide immediate relief within the existing regulatory framework. That request has been rejected.
“This decision is a serious blow to towing operators across Victoria who were counting on the Government to act,” said VACC CEO Peter Jones.
“We put a reasonable, practical solution on the table — a temporary fuel levy that would have helped operators keep their trucks on the road and their businesses viable. Instead, operators have been left exposed to rising costs with no immediate relief.”
VACC warns that without meaningful intervention, fewer tow trucks will be available to respond to crashes and breakdowns — leading to longer wait times, vehicles left stranded on major roads, and congestion spreading across the network.
“Operators cannot absorb fuel costs that are rising well beyond this modest adjustment,” Mr Jones said.
“If businesses are forced to close or scale back their fleets, there will simply be fewer tow trucks available when Victorians need them most. Longer waits, longer road closures, greater disruption, that is the practical consequence of the Government's decision. Operators are not seeking a windfall. They are asking for a fair, temporary mechanism to remain viable. The Government has the power to act. Today, it chose not to.”
While the Government has pointed to longer-term reforms to the fee indexation framework, these are not expected to take effect until July 2026 and do not address the immediate pressures facing operators.
VACC will continue to advocate for urgent action, including reconsideration of a temporary fuel levy, to ensure towing operators can remain viable and continue delivering this essential service.
ENDS
Media contact:
Andrew Molloy
Manager Marketing, Media, Communications & Publications
P. 03 9829 1248 | M. 0457 188 375 | E. [email protected] | W. vacc.com.au
Karla Leach
Executive Manager, Marketing and Communications
P. 03 9829 1247 | M. 0429 334 832 | E. [email protected] | W. vacc.com.au
About VACC
Founded in 1918, the Victorian Automotive Chamber of Commerce (VACC) represents over 5000 businesses in Victoria and Tasmania that employ more than 50,000 people. Member businesses range from new and used vehicle dealers, repairers, vehicle servicing, parts and component wholesale/retail and distribution and aftermarket manufacture, tyre dealers and automotive dismantlers and recyclers.
VACC develops the future workforce, employing 570 apprentices and trainees through its group apprenticeship scheme, and maintains memberships with the Motor Trades Association of Australia and Australian Chamber of Commerce and Industry and contributes to the national policy debate through these leading industry associations.