Diesel Industry News

From the Editor's Desk

This week's book is dominated by one story wearing a lot of hats: diesel refining margins, not a lack of crude, are pushing bowser prices up worldwide, from Berrima to Bangladesh. On the brighter side, GWM has a genuine diesel off-roader landing by Christmas, ZF has a hybrid gearbox worth watching, and Chery's diesel plug-in ute finally showed its face in Sydney. No em dashes were harmed in the making of this edition. Bob, Editor.

Stop Press: the last 48 hours

GM confirms 8.3 litre “Mongoose” Duramax V8 diesel for 2027 heavy duty trucks

General Motors has confirmed, via an official teaser, an all new 8.3 litre Duramax turbo diesel V8 for the 2027 Silverado HD and Sierra HD, aimed squarely at Ford's Scorpion PowerStroke. No power, torque or payload figures released yet.

GM Authority · 21 September 2026

Victorian grain growers face six figure diesel bill blowout as harvest looms

Diesel has jumped from $1.70 a litre a year ago to $2.35–$2.46 now, with some forecasts putting it at $3.20 by harvest. VFF Grains Group president Jason Mellings says a further $1 a litre rise would cost his own operation an extra $50,000 this harvest.

Stock and Land · 20–21 September 2026

Bangladesh hikes diesel price by Tk 20 a litre overnight

Bangladesh's Energy and Mineral Resources Division raised diesel from Tk 115 to Tk 135 a litre, a 17 per cent jump, effective midnight 21 September, blaming a doubling of global fuel prices since March.

The Business Standard · 20 September 2026

Refiners are banking record margins on diesel while Aussie farmers eat a 40% profit hit

Photo: ABC News, Jostina Basta

Front Cover · Best Story in the World This Week

Refiners are banking record margins on diesel while Aussie farmers eat a 40% profit hit

Why it matters: It explains the mechanics behind the diesel pain workshop customers and farm fleet operators are already living with. It is refining margin, not crude cost, driving the bowser price, and it is now measurably eating into ag customers' ability to pay for servicing and parts.

The “crack spread”, the margin refiners make turning crude into diesel, has blown out from around $24 to $69 a barrel since the Middle East conflict began, even though crude itself is only up from about $70 to $105 a barrel. Australia imports 80 to 90 per cent of its diesel, so it wears that refining premium directly. NSW Farmers grain committee chair Adrian Roles says diesel is now costing his operation about 40 per cent of its profitability, on top of pricier fertiliser and pesticide. Commonwealth Bank's Vivek Dhar says the market is “screaming” for diesel supply, while the Reserve Bank's Sarah Hunter has flagged the Middle East situation as the economy's “big unknown.” Trucking industry voice Neil Chambers put it bluntly: this is not a fuel supply crisis, it is a fuel cost crisis.

Analysts at the Australian Independent Fuel Retailers Association warn pump prices could still climb another 20 to 30 cents a litre on top of a national average already sitting around $2.65, even with tanks staying full. Victorian grain growers heading into the November harvest are especially exposed (see Stop Press).

Source: ABC News, Jostina Basta · 18 September 2026 · Verified against Commonwealth Bank commentary, NSW Farmers and RBA statements quoted in the original report.

Desk 1 Australia & New Zealand The Home Desk

Rural carriers push for 250 million litre regional diesel reserve

Why it matters: It's the first concrete industry counter proposal since Canberra's fuel security consultation closed, and it targets the exact gap that hurts diesel dependent regional transport: reserves sitting at coastal terminals that can't reach the bush.

The Livestock, Bulk and Rural Carriers Association has told the Federal Government its planned Australian Fuel Security Reserve won't work for the bush unless it includes dedicated regional diesel storage. LBRCA wants a Regional Fuel Storage Scheme adding 250 million litres of verified diesel capacity across regional Australia over five years, open to carriers, farmers, processors, councils and co-ops running shared depots. LBRCA president Wade Lewis put it bluntly: fuel sitting at a major coastal terminal is “of limited value if it cannot reach a livestock carrier, farmer, processor.” GrainGrowers backed the push. Submissions closed 15 September.

Source: Australian Rural & Regional News · 16 September 2026

NZ tax bill ends the FBT exemption that made diesel utes the default work vehicle

Why it matters: This directly changes the economics of buying a diesel ute for work in New Zealand, and for the first time sets a different fringe benefit tax rate for diesel than for hybrid and electric company vehicles.

A bill introduced into New Zealand's Parliament will scrap the work related vehicle FBT exemption that has made the sign written double cab diesel ute the default tradie company vehicle since 1985. From 1 April 2027, employers choose a fixed private use category instead of keeping logbooks, and the taxable value is set by fuel type: petrol and diesel at 20 per cent of cost price a year, hybrids at 19.6 per cent, EVs at 17 per cent. Revenue Minister Simon Watts framed it as a compliance cost cut: “close enough is good enough.” For fleets, it's the first time NZ tax law has priced diesel differently to hybrid and electric at the point of ownership, not just at the pump.

Source: Beehive (NZ Government); vehicle detail via AutoTalk NZ · Bill introduced 10 September 2026

Photo: GWM Australia (manufacturer press asset)

GWM confirms diesel-only Cannon Alpha XSR off-roader for Australia by Christmas

Why it matters: A genuine new diesel product landing within weeks, aimed straight at Ford's Ranger Wildtrak X and Toyota's HiLux Rugged X, and shows GWM backing diesel hard even as it expands its PHEV line-up.

GWM Australia has confirmed a rugged new Cannon Alpha XSR grade running the brand's 3.0 litre turbo diesel four (170kW/620Nm) will land in local showrooms within the next couple of months. GWM Australia head of marketing and communications Steve Maciver said buyers would see it shortly. Based on the Chinese market Cannon Mountain and smaller Cannon XSR, the local version is tipped to get 18 inch alloys on all terrain tyres, a steel bumper with red recovery hooks, a snorkel and a sports bar. Pricing isn't out yet: the existing 3.0 litre diesel range runs $58,990 to $63,990 drive away. A Hi4-T petrol PHEV version of the XSR hasn't been ruled out but isn't confirmed.

Source: Drive · 18 September 2026

Chery Stockman diesel plug-in hybrid ute makes its Australian public debut

Why it matters: Signature diesel hybrid theme, home market angle: Australia's first diesel PHEV ute has now been shown on Australian soil rather than just previewed overseas, with specs confirmed by Chery's own local site.

Chery gave the Stockman ute its first Australian public showing at Everything Electric Sydney (18–20 September), alongside an updated MY27 E5 electric sedan and other new brand debuts. The Stockman pairs a 2.5 litre turbo diesel with an electric motor and a plug-in battery, producing a combined 350kW and 800Nm, with Chery's own site quoting up to 100km of electric-only range on the NEDC cycle and combined fuel use of 2L/100km. Braked towing is rated at 3,500kg. Chery hasn't released Australian pricing, final performance figures or an exact on-sale date, but is targeting the end of 2026. At 5,450mm long it's longer than a Toyota HiLux.

PHEV · verified against Chery Australia's own spec page: 2.5T diesel plus electric motor, plug-in charging, up to 100km electric-only range.

Source: Chery Australia (manufacturer); corroborated by Whichcar · 18–20 September 2026

Desk 2 Road Vehicles & Performance Worldwide

BMW confirms X5 40d diesel for Australia, now with 48V mild hybrid assist

Why it matters: A correctly badged mainstream diesel MHEV landing in a market where diesel hybrid stories are usually about Chinese utes, showing the mild hybrid diesel format is still alive at the premium end.

BMW Australia has priced the fifth generation X5, due in showrooms by the end of 2026, with the diesel X5 40d xDrive at $143,900 before on-roads, up $4,000 on the outgoing xDrive30d. The 3.0 litre turbocharged inline six diesel now makes 230kW and 670Nm, up 20kW/20Nm on the previous generation, running through an eight speed automatic. Both the diesel and the petrol X5 40 xDrive get 48 volt mild hybrid assistance as standard, per BMW's own global press materials. The new X5 launches five seat only in Australia, with the electric iX5 and updated X5 50e plug-in hybrid following in early 2027.

MHEV · 48V mild hybrid, assist and start-stop only, no electric-only drive, confirmed against BMW's own press release.

Source: BMW Group PressClub · 16 September 2026

Photo: GM/Chevrolet press photo, via GM Authority

GM sticks with diesel for its next generation full size pickups as Ford and Ram bet on hybrids

Why it matters: The clearest split in strategy among the “Detroit Three” in years: while Ford and Stellantis lean into hybrid drivetrains, GM is doubling down on diesel for the redesigned Silverado and Sierra.

General Motors will launch redesigned Chevrolet Silverado and GMC Sierra pickups in the fourth quarter of 2026, built around an upgraded 3.0 litre Duramax turbo diesel rather than a hybrid system. GM says a four wheel drive diesel model returns around 24mpg and, with the optional larger tank, can cover more than 900 miles on the highway. GM president Mark Reuss argued the diesel approach beats “adding a hybrid system to an existing powertrain” for long haul efficiency, even with diesel running near $6 a gallon in parts of the US. Ford's hybrid F-150 manages 23mpg; Ram is chasing a 690 mile range with an extended range plug-in hybrid.

Source: Reuters, via Investing.com · 17 September 2026

Desk 3 Trucking, Agriculture & Heavy Industry Worldwide

Photo: Daimler Truck AG

Mercedes-Benz Trucks launches Powerliner, a new diesel driveline cutting fuel use up to 4%

Why it matters: Genuine diesel engine news, not an EV headline, from one of the world's largest truck makers, timed just ahead of Europe's biggest commercial vehicle show.

Mercedes-Benz Trucks has unveiled Powerliner, an integrated next generation driveline pairing its OM 470 and OM 471 diesel engines with a new spread of transmissions and axles. The company says the coordinated package cuts fuel consumption by up to 4 per cent against today's equivalent models through downspeeding, reduced friction and closer engine-to-transmission-to-axle matching. The OM 470 spans 265 to 335kW for distribution work, while the OM 471 covers 310 to 400kW for long haul. Both are Euro VIe compliant with a stated path to Euro 7. Rollout begins April 2027.

Source: Daimler Truck newsroom · 13 September 2026

Photo: Illinois Department of Transportation, via Transport Topics

US House passes five year extension of Diesel Emissions Reduction Act funding

Why it matters: DERA money pays for engine retrofits and replacements on Class 8 trucks, construction gear and farm equipment, so its renewal directly affects fleet operators' upgrade budgets.

The US House of Representatives passed the Diesel Emissions Reduction Act of 2025 by 343 to 79 on 15 September, extending the EPA grant and rebate programme at $100 million a year through fiscal year 2029, with 30 per cent reserved for state run grants. The money funds engine upgrades, cleaner fuels and low rolling resistance tyres for Class 8 trucks, construction and farm equipment. American Trucking Associations' Henry Hanscom said DERA “has helped accelerate the deployment of cleaner, more efficient trucks.” STATUS: FINAL as a House vote (343-79), but the Senate companion bill, pending since October 2025, still has to pass before it becomes law.

Source: Transport Topics · 15 September 2026

Desk 4 Marine, Rail, Defence & Power Worldwide

Photo: Sergio Bittencourt, Petrobras

Petrobras christens Starnav Elektra, Brazil's first hybrid diesel electric supply vessel

Why it matters: Opens Petrobras's Mar Aberto fleet renewal programme and is the first of a ten ship hybrid series built in Brazil, a genuine diesel electric hybrid story for the marine desk.

Petrobras christened the platform supply vessel Starnav Elektra at Rio's Pier Maua on 19 September, the first of ten sister ships built by Estaleiro Detroit in Itajai, Santa Catarina. The PSV runs MTU 16V 4000 M33S diesel generator sets with selective catalytic reduction, paired with a battery bank that lets it switch between diesel and battery power depending on task, cutting emissions by a claimed 18 per cent against comparable conventional vessels and giving it HVO capability. The ship sailed from Santa Catarina to Rio under an all female command and crew of 16, led by Captain Isabela Teixeira Ponce de Leon.

Source: Ocean Energy Resources · 20 September 2026

Photo: Excalibur Army

Latvia dumps Sweden's Archer for Czech Morana howitzers on Tatra diesel chassis

Why it matters: A NATO frontline state has torn up a signed 2025 contract with BAE Systems Bofors and switched suppliers, a rare move that says as much about delivery timelines as it does about the guns themselves.

Latvia's government has ditched a 2025 commitment to Sweden's Archer self-propelled howitzer and instead ordered the Czech built Morana from Excalibur Army. The Morana rides on a Tatra 8x8 chassis powered by a 600 horsepower Tatra diesel engine, with automatic transmission, central tyre inflation and all wheel steering, hitting 90km/h on the road. The 155mm/52 calibre gun fires out to 41.5km and can put six rounds downrange in the first minute. Riga said the switch came down to cost, delivery times, capability and local industrial involvement.

Source: Defense News · 18 September 2026

Desk 5 Technology, Fuels & the Future Worldwide · the diesel-hybrid desk

Photo: ZF Commercial Vehicle Solutions

ZF's TraXon Hybrid wins the 2027 Truck Innovation Award

Why it matters: The clearest signal yet that heavy truck makers see hybrid transmissions, not just batteries, as the near term route to cutting diesel CO2.

ZF's TraXon Hybrid heavy duty transmission has picked up the Truck Innovation Award 2027, judged by the International Truck of the Year jury. The system builds the electric motor straight into the transmission in a P2 layout, running at 600 to 800 volts with 190kW of continuous electric power. ZF says the unit can drive on electric power alone up to 12th gear and, when the truck is plugged in and recharged regularly, cuts CO2 by up to 47 per cent in long haul work and up to 73 per cent in distribution work. Jury chairman Florian Engel said the system demonstrated how a broader mix of technologies could support lower emission road freight.

PHEV (headline configuration) · a heavy truck driveline component rather than a passenger vehicle, so it sits outside the usual ute/car ladder. On the numbers (600–800V, 190kW continuous, genuine electric-only running) it's well beyond mild hybrid; ZF itself allows it to run as a self-charging HEV depending on integration, but the quoted CO2 figures assume regular plug-in charging, which is why it's labelled PHEV here.

Source: ZF Group press portal; corroborated by Automotive World · 15 September 2026

German biodiesel industry pushes for faster nationwide rollout of B10 diesel

Why it matters: Higher biodiesel blends cut diesel's carbon footprint and import dependence without any new engine hardware, but patchy vehicle maker approval is slowing uptake in Europe's largest diesel market.

Germany's biodiesel industry is pushing the government to speed up nationwide sales of B10 diesel, a blend of up to 10 per cent biodiesel against the current 7 per cent standard. The German Association of Waste-Based Fuel Manufacturers (MVaK) says wider B10 availability would cut emissions and ease reliance on imported fossil diesel, all without new engine hardware. Mercedes-Benz, BMW, Opel and Peugeot/Citroen already approve B10, but Volkswagen Group and Ford Germany haven't signed off, so drivers need to check their handbook before filling up. France, Belgium and Portugal already sell B10 or higher blends.

Source: MVaK; trade coverage Biofuels International · Reiterated at IAA Transportation, 8 September 2026

Desk 6 Exhibitions & Trade Fairs Worldwide

Photo: MAN Truck & Bus SE official press kit

MAN keeps diesel in the mix as it unveils new eTGX generation at IAA Transportation 2026

Why it matters: While rivals push all electric messaging, MAN used its main Hannover reveal to confirm continued investment in diesel drivelines alongside battery trucks.

MAN Truck & Bus opened IAA Transportation 2026 in Hannover with its new eTGX generation, claiming up to 720km of electric range. But the same release confirmed MAN's D30 PowerLion diesel drivetrain, said to cut fuel consumption by up to 5 per cent versus its predecessor. MAN also displayed a new 60 tonne TGS 8x4 diesel tractor built for mining applications needing extra robustness. The company's own “Beyond Diesel” report, cited in the release, argued electrification only overtakes diesel on cost after five years of operation.

Source: MAN Truck & Bus press release, via EuropaWire · 15 September 2026

Desk 8 Regulation & Policy Worldwide

European truck makers push for three year delay to 2030 CO2 targets

Why it matters: The seven biggest European truck and bus manufacturers are asking Brussels to push the 2030 CO2 compliance deadline back to 2033, a direct challenge to a target currently locked in law.

On 15 September 2026, ACEA (representing DAF, Daimler Truck, Ford Otosan, Iveco Group, MAN Truck & Bus, Scania and Volvo Group) called for the 2030 CO2 compliance timeline for heavy duty vehicles to be pushed out by three years, arguing the charging and hydrogen infrastructure needed simply isn't there. Fewer than 2,000 public truck chargers exist across Europe against a need for at least 700 more a month. Zero emission trucks make up only 2.4 per cent of new registrations, against a requirement to cut fleet average CO2 by 43 per cent by 2030. STATUS: PROPOSED (industry request) against a FINAL, already legislated EU standard. Nothing changes yet for workshops and fleets.

Source: EUbusiness, citing ACEA directly · 15 September 2026

US EPA's DEF/SCR no-derate rule remains PROPOSED, finalisation still expected this fall

Why it matters: This is the rule every US diesel workshop is waiting on, and as of this research window it still hasn't been finalised.

As of 8–10 September 2026 reporting, EPA's proposal to eliminate mandatory SCR related engine derates and speed reductions, replacing them with driver notifications instead of forced power cuts, remains in PROPOSED status. The public comment period closed 29 August 2026. EPA Region 7 administrator Jim Macy told Brownfield Ag News the agency still expects to finalise the rule this fall, but as of this research window no finalisation has occurred. For workshops: DEF related derates and speed limitations remain legally required on current SCR systems until EPA publishes a final rule.

Source: Brownfield Ag News; also Tank Transport · 8–10 September 2026

Watch List: next issue

Isuzu recalls 2,586 D-Max bakkies across southern Africa over a loose brake pedal pin · Toyota drops the petrol V6 from the Land Cruiser 300 in Japan, diesel remains the only non-hybrid choice · GM's new Duramax L6P diesel engine name surfaces in 2027 heavy duty order guides · Renault Trucks debuts a new DE13 diesel engine, up to 540hp, on the 2027 T High at IAA · Kenworth previews the C580 severe duty diesel truck, successor to the C500 · Volvo Trucks launches the D13 diesel engine at IAA, up to 4% lower fuel use, sales already underway · Volvo CE launches the 65 tonne EC650 diesel mining excavator at India's biggest construction show · Navantia hands over the Moulay Hassan I patrol vessel to Morocco · Cochin Shipyard lays the keel for India's first Next Generation Missile Vessel (CODAG propulsion) · A 12 month Type 2 road train trial begins on Queensland's Emerald freight route · WA extends its fuel State of Emergency to March 2027 and boosts the FuelWatch comparison site · GWM's genuine diesel hybrid/PHEV programme for Tank 300/500 and Cannon Alpha stays in development, China launch ~Q1 2027, Australia ~2028 · Chery's KP31 diesel PHEV dual cab pickup still has no disclosed battery size or electric range, due Q4 2026 in Australia

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