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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.

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Yajush Gupta

Yajush Gupta

Yajush writes for Dynamic Business and previously covered business news at Reuters.

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