BUZZ — Australia's Transurban falls as Citi flags traffic and fuel price headwinds

(Updates) * Shares of Australia's Transurban Group fall as much as 0.8% to A$13.230 * Citi says organic traffic growth is the primary driver of free cash flow and dividend growth for TCL * Flags traffic data showing persistent traffic softness across Sydney and Melbourne, which it says closely correlates with higher petrol and diesel prices following the removal of fuel excise waivers * Says large vehicles account for about 16% of network traffic volume but around 37% of group toll revenue, rising to as much as 50% in Brisbane and Melbourne, creating downside risk to higher-margin commercial traffic growth if diesel prices remain elevated * Says long concession durations and CPI-linked toll escalators provide structural revenue protection, but near-term volume weakness and high fuel prices constrain free cash flow and distribution growth * Maintains "neutral" rating on TCL * YTD, stock down 6.1%, including the session's moves (Reporting by Rajasik Mukherjee & Paridhi Minda in Bengaluru) ((Rajasik.Mukherjee@thomsonreuters.com)