Livestock transporters have been forced to immediately pass on increased fuel costs to producers, but one major operator said few of his clients had raised concerns.

Dom Shanahan owns and operates a fleet of livestock B- doubles, each of which have 2000-litre fuel tanks.

When the price of fuel went up from 190c per litre a few weeks ago to more than 260c per litre following the war in the Middle East, Mr Shanahan said he had “no choice” but to pass it on.

“It was a non-negotiable, and as fuel makes up 30 per cent of our costs, then of course we had no choice but to pass it on,” Mr Shanahan said.

“And it could be a fair while that these fuel prices stay up.

“Stable fuel prices over the past couple of years was good for everyone.”

While Mr Shanahan would not disclose the new cost per kilometre to transport stock, he said it still equated to a small proportion of the overall value.

“We estimate that it costs 2-3 per cent of the value of a big steer or even a weaner,” he said.

“To put that into context, we invest $1m on a B-double to transport those stock to make sure they arrive safe and healthy.

“There is no panic in the feedback that we are getting about the new freight rate now and I think that’s because producers understand that the cost of moving stock is one of the smallest parts of production.

“If a 2.5-3.5 per cent cost (for transport) is the tipping point for producers, then they probably have bigger problems with their business than how much it costs to cart cattle.”

Mr Shanahan estimated his fuel bill this financial year would now exceed “at least $8m”.