A growing number of trucking groups are urging the federal government to reintroduce a fuel excise cut.

Diesel cost an average of $2.86 cents a litre in capital cities on Wednesday, up 18.9 cents from the week prior, ACCC data showed – and it’s expected to worsen.

For almost 40 years, the chief executive of All Purpose Transport, Paul Kahlert, has watched new generations of truck drivers learn from their parents about how to move produce and crucial supplies across the country.

They have been lifelines for small towns, which often rely on road trains for their food, clothes and school supplies.

Now, he is seeing multi-generation businesses put their trucks up for auction.

“Second and third generations can’t afford to look up the hill and see that their parents are struggling.”

All Purpose Transport boss Paul Kahlert says rising diesel costs will put pressure on other prices. Photo: PR Image

“From now until Christmas is the peak period for the transport industry,” Kahlert said, warning demand would put more pressure on prices.

At the same time, oil will likely become more expensive for the next six months during the European winter, when demand for heating homes and businesses surges.

The rising costs are contributing to an almost universal expectation the Reserve Bank of Australia will hike interest rates on Tuesday to the highest level in 15 years.

Energy Minister Chris Bowen has reaffirmed that a previous fuel excise cut was temporary. Photo: AAP

The federal government has ruled out cutting the fuel tax again, which gave motorists 32 cents a litre relief at the start of the US-Iran war.

The government was “very clear” the excise cut was temporary, Energy Minister Chris Bowen said.

“We did extend it a bit so it gradually returned to more normal levels, but we are not going to respond to every daily movement on the world oil price,” Bowen told the ABC in mid-September.

Focus had shifted to more permanent cost of living help through the tax system, Finance Minister Katy Gallagher said on Monday.

Economists have warned against reinstating the tax break, because it would ultimately worsen inflation.

All Purpose Transport employs more 400 people and must find the cash to cover rising diesel costs. Photo: PR Image

But Kahlert disagreed, instead favouring a Coalition plan for a new cut, as he pointed to more immediate impacts.

“The government can argue that they are getting more revenue and more tax, and therefore their returns are better, but from an operator’s perspective, they are having to find that cash in their business,” he said.

He has joined colleagues from Queensland and Australian trucking groups to call for immediate relief.

“Members are doing everything they can to keep freight moving, but they cannot keep financing sharp fuel increases on behalf of the rest of the supply chain,” Queensland Trucking Association chief executive Gary Mahon said.