Rising Fuel Prices and Your Business: What You Can Actually Do

Diesel has surged. Petrol is following. If you run a truck, tipper, delivery van, or work ute, your operating costs have jumped significantly in the past few weeks — and there’s no guarantee they’ll come back down quickly.

This page covers what’s actually driving the price increases, what it means for your bottom line, and the practical steps you can take — including when it makes financial sense to upgrade to a more fuel-efficient vehicle rather than keep burning money on an older, thirstier one.

What’s Driving the Price Spike

The current fuel price surge is driven by the escalating conflict in the Middle East. Iran’s blockade of the Strait of Hormuz — through which roughly 20% of the world’s oil supply passes during peacetime — has disrupted global fuel supply chains and sent international benchmark prices sharply higher.

According to NRMA data, wholesale diesel prices in Sydney rose from 166.4 cents per litre to 268.3 cents per litre between early and mid-March 2026 — a 67% increase. Wholesale petrol rose 49% over the same period. The ACCC is publishing weekly fuel price monitoring updates during the crisis and confirmed that across the five largest capital cities, average retail petrol prices on 11 March were 240.2 cents per litre.

The federal government has released approximately 800 million litres of petrol and diesel from domestic reserves and relaxed fuel quality standards for 60 days to boost supply. However, the extra fuel won’t flow immediately due to supply chain logistics, and some regional areas continue to report shortages — particularly affecting businesses that depend on diesel for trucks, plant, and equipment.

What This Actually Costs Your Business

The headline price increase matters, but what really hurts is the weekly cost difference. Here’s what the increase looks like for typical business vehicles:

For a tipper-and-dog operator doing 50 weeks a year, that’s an extra $20,000 per year in fuel alone. For an owner-driver running a rigid tipper, it’s an extra $12,500. These numbers change the economics of every job you quote.

Fuel Tax Credits: Check Before You Claim

If your business uses fuel in eligible activities, you may be entitled to fuel tax credits. These apply to fuel used in machinery, equipment, heavy vehicles, and certain business activities — but the rules are specific and the rates change.

Key things to know about fuel tax credits:

• They apply to business use of eligible fuels, not personal use
• Off-road use (earthmoving, generators, farming machinery) typically attracts a higher credit rate than on-road heavy vehicle use
• The road user charge for heavy vehicles on public roads reduces the credit amount — you still get a partial credit, but not the full rate
• You claim fuel tax credits on your BAS, not your income tax return
• You need records: fuel purchase receipts, logbooks (for vehicles), and reasonable estimates of business use percentages

If you’re not currently claiming fuel tax credits and you run trucks, plant, or earthmoving equipment, talk to your accountant. You may be leaving money on the table.

When Does Upgrading to a Newer Vehicle Make Sense?

This is the question worth doing the maths on. A newer truck, ute, or van is almost always more fuel-efficient than an older one — but financing a new vehicle adds a repayment. The question is whether the fuel savings plus the reduction in maintenance and breakdown costs outweigh the new repayment.

The breakeven calculation

Here’s a simplified way to think about it:

1. Calculate your current weekly fuel cost using current diesel prices and your actual consumption
2. Estimate the fuel cost with a newer vehicle (newer trucks can be 15–25% more fuel efficient; newer utes and vans 10–20%)
3. Add your current weekly maintenance and repair costs (averaged over the past 12 months)
4. Compare the total with the finance repayment on a newer vehicle plus its lower fuel and maintenance costs

For example: if your current tipper burns $1,080/week in diesel at current prices and costs $200/week in average maintenance, that’s $1,280/week in running costs. A newer, 20% more fuel-efficient tipper at $864/week fuel plus $80/week maintenance plus a $500/week finance repayment equals $1,444/week — that’s only $164/week more, and you’re driving a reliable, warranty-backed truck that holds its value.

If fuel prices stay elevated (or rise further), the breakeven tips in favour of the newer vehicle faster.

Practical Steps to Manage Fuel Costs Right Now

1. Review your pricing and quoting

If you’re quoting jobs that won’t start for weeks, your fuel costs may be significantly higher by the time you do the work. Consider building a fuel adjustment mechanism into your quotes — a clause that allows price adjustment if fuel exceeds a certain threshold. Many civil and transport contracts already include fuel surcharge provisions.

2. Check your fuel tax credits

Talk to your accountant about whether you’re claiming everything you’re entitled to. Off-road equipment (excavators, loaders, generators) typically attracts the highest credit rates.

3. Audit your fuel efficiency

Simple operational changes can reduce fuel consumption by 5–15%: correct tyre pressure, reducing idle time, route optimisation, removing unnecessary weight, and maintaining your engine and fuel system. For trucks, aerodynamic aids and speed limiters make a measurable difference.

4. Evaluate whether upgrading makes financial sense

If your vehicle is old, inefficient, and costing you in fuel and repairs, the maths on a newer vehicle may work out better than you think — especially with fuel at current levels. We can run the numbers on what a newer vehicle would cost you per week across our lender panel.

5. Consider your finance structure

If you already have vehicle or equipment finance, it may be worth reviewing the structure. A longer term or a balloon payment can reduce your weekly repayments, freeing up cash to absorb higher fuel costs. Talk to a broker about restructuring options.

How This Connects to Your Finance Options

How Long Will Prices Stay High?

Nobody knows for certain. The key driver is the conflict in the Middle East and the status of the Strait of Hormuz. If the strait reopens and oil flows normalise, prices should moderate — but this could take weeks or months. Markets are currently pricing in at least short-term disruption, and some analysts warn that if the conflict escalates further, prices could rise above what we’ve seen so far.

For business planning purposes, it’s worth running your numbers at three price points: current levels ($2.50–$2.70/L diesel), a moderate increase ($3.00/L), and a worst case ($3.50/L). This gives you a range to work with when deciding on vehicle upgrades, pricing adjustments, and finance restructuring.

The ACCC is publishing weekly fuel price monitoring updates during the crisis. You can access the latest update at accc.gov.au.