Temporary fuel cost escalation measures - phase 2
Global supply disruptions have continued to cause volatility in fuel prices.
The Department of Logistics and Infrastructure (DLI) is implementing phase 2 of the temporary fuel cost relief measures.
Eligibility
These measures apply to eligible DLI contracts where invoices were approved and paid from 1 October 2026 to 31 December 2026, and only while the terminal gate price is above $2 a litre.
Eligible contracts for the payment include construction, maintenance and service contracts where fuel is a direct and material delivery cost
Consultancy or service contracts where operational travel is a material component of delivery will only be assessed on lodgement of an evidenced claim.
General consultancy without material operational travel is not eligible.
Where a contract has an applicable fuel rise and fall mechanism, that contractual mechanism will apply instead of the separate interim payment process.
There is no change to contract risk allocation or entitlement.
What contractors need to do
You do not need to do anything additional to receive the price adjustment, unless you are evidencing material travel for a consultancy contract.
Eligible adjustment payments will be managed by DLI through existing contract variation processes.
Where temporary relief applies, DLI will calculate the adjustment for invoices paid in the relevant month and will process the payment through existing vendor details.
This ensures no additional work for industry.
When payments will be made
Adjustments are based on the month an invoice is paid, not the month the work was completed.
Submitted invoices require superintendent certification of completed work before being approved for payment in accordance with the contract. Temporary fuel adjustments are calculated separately based on invoices paid.
How the fuel adjustment is calculated
DLI will calculate adjustments centrally using eligible invoices paid in the applicable month, the approved fuel weighting and published fuel pricing. Existing contractual fuel allocations are not increased.
Some individual DLI contracts already specify fuel percentage allocations. These allocations are not increased under the temporary arrangements.
Benefit
The temporary measures are designed to:
- help sustain industry capacity
- reduce administration impost on industry
- ensure responsible use of taxpayer funds
- provide a temporary, targeted and fair approach
- use established contract mechanisms supported by strong governance.
The Northern Territory Government will continue to monitor market conditions.
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