Contracts cancelled, staff cut, hours reduced: the fuel crisis toll on business

One in four businesses are not confident they can manage the next four weeks. New research from the ACCI reveals the real toll of the fuel crisis

What’s happening: A survey of 2,283 businesses conducted by the Australian Chamber of Commerce and Industry between 24 March and 2 April 2026 has found that 95 per cent of respondents are experiencing some level of impact from higher fuel prices, with 46 per cent reporting significant or severe impacts.

Why this matters: The data captures a snapshot of the Australian business community under sustained pressure, with decisions already being made that will have consequences well beyond the immediate crisis.

When the Australian Chamber of Commerce and Industry surveyed its members in the final week of March 2026, the results were stark. Of the 2,283 businesses that responded across five states, only 5 per cent reported no impact from higher fuel prices.

The remaining 95 per cent were feeling it to some degree, with 22 per cent describing the impact as severe and a further 24 per cent as significant. That means nearly half of all respondents, 46 per cent, are operating under conditions they describe as significantly or severely affected.

The impacts are spreading well beyond direct fuel costs. Higher operating and input costs are affecting 81 per cent of businesses surveyed. Higher transport and freight costs are hitting almost 70 per cent. But the ripple effects extend further: 45 per cent are experiencing difficulty planning or pricing, 44 per cent are under cash flow pressure, and 43 per cent are seeing both reduced customer spending and increased supplier costs. Even workforce management is being disrupted, with 21 per cent of businesses having introduced flexible working arrangements and 19 per cent reporting increased absenteeism as a direct consequence of the fuel situation.

Absorbing what they cannot pass on

The financial picture for small businesses is particularly difficult. While costs are rising across the board, the ability to pass those costs on to customers is limited. Sixty-one per cent of businesses surveyed are absorbing the higher fuel costs themselves. Only 37 per cent have been able to pass higher costs on to customers.

That gap, between what it costs to operate and what the market will bear, is driving a series of defensive decisions across the business community. Fifty-five per cent of respondents are reducing non-essential spending. Thirty-eight per cent are changing business practices. Thirty-one per cent have delayed investment or expansion plans.

For businesses under the most acute pressure, the responses are more severe. Fifteen per cent are deferring or cancelling contracts. Fourteen per cent are reducing production or service levels. Eight per cent have reduced operating hours. Each of these decisions, the survey notes, carries implications for the ongoing viability of those businesses.

Staffing decisions already under way

The employment consequences of the fuel crisis are beginning to show in the data. Thirty per cent of businesses are reviewing staffing levels. Fifteen per cent have already reduced staff hours. Four per cent have stood down or laid off staff.

These are not hypothetical risks. They are decisions that have already been made, documented in a survey window of less than two weeks in late March and early April. For the employees and communities attached to those businesses, the fuel crisis has already moved from an economic concern to a personal one.

The pressure businesses are under is reflected in how urgently they are seeking government support. Thirty-eight per cent of respondents indicated they need support immediately to continue operations. A further 13 per cent said they need it within the next week. Combined, more than half of surveyed businesses need some form of government assistance within seven days to keep operating.

The most commonly cited support need is fuel price relief, sought by 37 per cent of respondents, which the temporary fuel excise cut announced from 1 April 2026 will partially address. Businesses are also seeking assistance with freight and transport costs, cited by 19 per cent, and direct financial assistance for input costs and cash flow pressure, cited by 17 per cent.

The overall confidence picture captures where businesses stand heading into April. Forty-two per cent are confident they can manage the impact of rising fuel costs over the next four weeks. Thirty-one per cent are managing but uncertain. Twenty-seven per cent are not confident they can cope at all.

For a quarter of Australian businesses surveyed, the question is no longer how to manage the fuel crisis. It is whether they can.

Keep up to date with our stories on LinkedInTwitterFacebook and Instagram.

Zonia Paris
Read More

Latest

College Football Offseason Buzz: Tom Moore Returns to Iowa as Senior Consultant

This is college football. At some point, the games pause, but the news and drama never does. Here's an offseason tracker for buzz across the college football landscape, including coaching changes, injury news, personnel moves and more. Tom Moore Returns to Iowa at 87 as senior consultant The Iowa Hawkeyes  announced the hiring of former

Football Is Life: ‘Ted Lasso’ Star Cristo Fernandez Lands Deal With USL Club

Forward Cristo Fernandez, the actor who portrayed Dani Rojas on the Apple TV series "Ted Lasso" has signed with El Paso Locomotive FC of the USL Championship to play soccer professionally. Terms of the deal announced Tuesday, which still must be approved by the second-tier league and soccer federation, were not disclosed. Fernandez earned the

The quiet grit of Cowboys legend Craig Morton

The Dallas Cowboys family and the football world lost a true pioneer this past Sunday with the passing of Craig Morton. As one of the original cornerstones of the franchise, Morton helped transform the Cowboys from a young expansion team into a perennial powerhouse. He carried himself with a quiet dignity and a toughness that

College Football’s No. 10 TE Recruit Set to Visit Three Elite Programs

One of the top-flight prospects coming out of the state of Ohio and among the best targets in the 2027 college football recruiting class is poised to take some consequential visits to national programs in the weeks to come, but the Buckeyes notably aren’t among them. Four-star Columbus (Ohio) Francis DeSales national No. 10 ranked

Newsletter

Don't miss

College Football Offseason Buzz: Tom Moore Returns to Iowa as Senior Consultant

This is college football. At some point, the games pause, but the news and drama never does. Here's an offseason tracker for buzz across the college football landscape, including coaching changes, injury news, personnel moves and more. Tom Moore Returns to Iowa at 87 as senior consultant The Iowa Hawkeyes  announced the hiring of former

Football Is Life: ‘Ted Lasso’ Star Cristo Fernandez Lands Deal With USL Club

Forward Cristo Fernandez, the actor who portrayed Dani Rojas on the Apple TV series "Ted Lasso" has signed with El Paso Locomotive FC of the USL Championship to play soccer professionally. Terms of the deal announced Tuesday, which still must be approved by the second-tier league and soccer federation, were not disclosed. Fernandez earned the

The quiet grit of Cowboys legend Craig Morton

The Dallas Cowboys family and the football world lost a true pioneer this past Sunday with the passing of Craig Morton. As one of the original cornerstones of the franchise, Morton helped transform the Cowboys from a young expansion team into a perennial powerhouse. He carried himself with a quiet dignity and a toughness that

College Football’s No. 10 TE Recruit Set to Visit Three Elite Programs

One of the top-flight prospects coming out of the state of Ohio and among the best targets in the 2027 college football recruiting class is poised to take some consequential visits to national programs in the weeks to come, but the Buckeyes notably aren’t among them. Four-star Columbus (Ohio) Francis DeSales national No. 10 ranked

Playson builds on strong growth in Switzerland with StarVegas partnership

Playson, the accomplished digital entertainment supplier, has further solidified its footprint in the regulated Swiss market by entering a strategic partnership with StarVegas, one of the country’s first licensed online casino operators. StarVegas is a leading Swiss online casino brand operated by Casino Interlaken, one of the country’s most established land-based casino groups. It is

WD sees sustainability as key business driver in an ‘AI economy’

Hard drive company WD promoted long-term operations and sustainability executive Jackie Jung to become its first chief sustainability officer in February, as it steps up sales to companies building AI data centers. Her vision: Turn sustainability into a “brand” for WD, a strategy that reduces risk for the $6 billion company (formerly known as Western

5 Business Ideas Worth Starting in 2026

If there is one thing Nigerians understand well, it is how to spot opportunity inside hardship. In 2026, that mindset will matter more than ever. The economy is tough, competition is rising, and many people are looking for smarter ways to earn, build, and survive. But even in a difficult environment, some businesses still stand

Getting a business loan now comes with a frequent flyer upside

Australian fintech Prospa has partnered with Qantas Business Rewards, letting eligible SMEs earn up to 500,000 points per loan. What’s happening: Australian fintech lender Prospa has partnered with Qantas Business Rewards to allow eligible small and medium business owners to earn up to 500,000 Qantas Points per loan when taking out a Prospa Small Business