Tips for small businesses responding to 2026 fuel shortages

What the latest surge means for SMEs and four practical ways to protect margins

Fuel prices rose sharply in late March 2026 and we believe the pressure will fall hardest on smaller and newer businesses that are still building stable margins, pricing discipline and cash reserves.

That matters because small businesses made up 97.3 per cent of Australian businesses in June 2025, according to ASBFEO, while ABS data shows more than 437,000 business entries in 2024–25. In other words, a large number of operators are still in the early stages of building sustainable businesses and may be especially exposed when a core running cost suddenly climbs.

The figures behind this update draw on ASBFEO and ABS business data, ACCC fuel monitoring for the week to 25 March 2026 and broader RBA commentary on cash-flow pressure for smaller firms. Together, they point to a simple reality: rising fuel prices are not just a transport issue. They can affect delivery economics, supplier costs, freight pricing and the viability of everyday service work.

Why this matters for small businesses

Miralda Ishkhanian, Chief Operating Officer of Honcho, says the latest rise should be treated as a genuine operating pressure rather than a passing headline.

"Rising fuel prices are not just another unpleasant headline for Australia's small business sector. They are a stress test, especially for businesses less than two years old that have not yet built the pricing discipline, customer base or cash reserves to absorb repeated cost shocks," Ishkhanian said.

"For large corporates, cost increases can often be absorbed or spread across the business. For sole traders, family-run businesses and newer operators still finding a stable footing, there is much less flexibility," Ishkhanian said.

"That is why the issue deserves more attention than a simple petrol-price lament. Fuel affects how a business moves, what suppliers charge, how freight is priced and whether service economics still stack up."

Four practical responses to rising fuel costs

Businesses in their first two years are often still refining pricing, managing uneven demand and juggling tight cash flow. With that in mind, these are the four areas we believe are worth reviewing now.

1. Review current outputs and reprice

Ishkhanian says businesses should first review work that is no longer commercially viable. Delivery jobs, call-out services and low-value appointments may need updated fees, tighter service radiuses or revised minimum job sizes.

"Repricing doesn't have to mean losing customers; it means understanding your cost base and pricing with intention," said Ishkhanian. "The businesses that navigate this well are the ones that make timely adjustments rather than absorbing costs in silence."

2. Consolidate or reduce scope

The second step emphasises the need to optimise travel and logistics processes first, ensuring inefficiencies are addressed before making changes to growth plans.

"Second, reduce wasted kilometres before cutting growth plans. Grouping appointments by area, consolidating deliveries and avoiding low-value trips can improve efficiency without undermining customer demand", said Ishkhanian.

3. Make use of the tools available

Fuel price transparency tools can help businesses make better weekly decisions. Even relatively small differences per litre can add up quickly for operators who travel regularly.

"Third, use fuel price transparency tools more consistently. The ACCC has pointed consumers and businesses to apps and schemes that improve price visibility, and even relatively small differences per litre can compound over time for businesses with regular weekly travel," said Ishkhanian.

ACCC monitoring for the week to 25 March 2026 showed diesel prices across the five largest cities averaged 303.5 cents per litre, while diesel across more than 190 regional locations averaged 307.6 cents per litre.

"Staying across market volatility will support operational outcomes," Ishkhanian said.

4. Check whether you are eligible for relief

The final area to review is whether any tax treatment, relief or efficiency support is being missed. While that will not fix an unprofitable model, it may reduce avoidable leakage at a time when every operating cost counts.

"Fourth, check whether any tax treatment, relief or efficiency support is being missed. While that will not solve an unprofitable model, it can reduce unnecessary leakage at a time when every operating cost matters."

Protect your margins before pressure builds

For us, this is a reminder that fuel price rises can quickly become a broader profitability issue for small businesses, particularly those still finding their footing. The earlier operators review pricing, delivery patterns and operating efficiency, the more options they are likely to keep.

If you are reviewing how your business is set up to handle changing costs, Honcho can help you launch, manage and grow your business with the tools and support needed to stay on top of key operational decisions.