The escalating conflict in Iran and the broader Middle East is casting a long shadow over the daily lives of Australians, creating a palpable sense of unease and financial strain. From the everyday struggle at the petrol bowser to the looming anxieties of small business owners and farmers, the ripple effects are being felt across the nation. Consumer confidence has plummeted to its lowest point since records began in the 1970s, a stark indicator that times are indeed tough, even more so than during the initial stages of the COVID-19 pandemic.
The ANZ-Roy Morgan consumer confidence figures have seen a significant drop, falling 5.4 points to 63.1. This decline is directly attributed to a confluence of factors including soaring energy prices, widespread cost-of-living concerns, and growing fears of fuel shortages. These anxieties are not merely abstract economic indicators; they are translating into real-world challenges for ordinary Australians. Here are just a few of the personal stories illustrating how this crisis is unfolding:
The Freight Carrier Caught in the Crossfire
Dennis Maddock, a small business owner from Canberra operating an interstate furniture removal and delivery service, is grappling with the dual pressures of escalating fuel costs and unreliable supply. “Our fuel costs have increased significantly and supply in both capital cities and regional towns is not guaranteed,” he stated. He shared a recent experience where Tarcutta on the Hume Highway ran out of diesel, highlighting the precariousness of the situation.
“Our customers continue to want cheap prices,” Mr. Maddock explained. “With fuel prices moving upwards daily, we are caught in the middle with no information coming from the federal government either about price or surety of supply. The current lack of information means we cannot quote accurately as we don’t know what our costs will be.” This uncertainty makes forward planning and maintaining competitive pricing an almost impossible task.
A Luxury Service Facing Steep Cuts
Astrid Fuster Griggs, who runs a massage and alternative health care business in Murwillumbah, NSW, believes the prevailing uncertainty is forcing people to cut back on non-essential spending. Her industry, often considered a “luxury” by working individuals, has been hit particularly hard. “From this week compared to the previous one, I had 80 per cent less clients coming in,” Ms. Griggs reported. “Lots of cancellations and no new bookings.”
Having recently opened a new clinic in a burgeoning suburb, Ms. Griggs had anticipated growth. However, the escalating fuel prices, coupled with a 35-40 minute commute to work, have created significant financial headwinds. The rising cost of travel directly impacts her ability to attract and retain clients who are also feeling the pinch.
The Diesel Dilemma for a Fleet Operator
Derick Brosnan, from Arundel in Queensland, operates a fleet of diesel-dependent vehicles and describes the current uncertainty as “killing” his business. He has been informed that diesel supplies are dwindling, with indications that only emergency services might have priority access. This prospect threatens to bring his entire operation to a standstill. “The uncertainty is killing me. Are we running out? Are we not?” he questioned.
The 56-year-old has witnessed a substantial increase in fuel prices, estimating a nearly 40 per cent jump since the conflict began. He is currently absorbing an additional $1 per litre in fuel costs daily just to keep his business afloat. “If I can’t drive the vehicles, I can’t deliver products, how can I pay my staff their wages? My biggest fear is having to put the price up,” he admitted.
National Price Hikes and Historic Peaks
The impact on Australian fuel prices has been dramatic. National average petrol prices reached an unprecedented $2.38 per litre for regular unleaded in the week ending March 20, according to the Australian Institute of Petroleum (AIP). This figure surpasses the previous record of $2.19 set the week before and represents a 27 per cent increase since the conflict commenced on February 28.
Diesel prices have also hit historic highs, exceeding $3 per litre in almost every major capital city across the country. These price surges are a direct consequence of geopolitical events that have disrupted global oil trade routes, particularly the closure of the Strait of Hormuz, which accounts for approximately 20 per cent of global oil shipments.
Wildlife Rescuers Feeling the Pinch
The strain is even being felt by volunteer wildlife shelters. Heidi, a wildlife rescuer in Ballarat, Victoria, explained that her organisation, like many others, relies heavily on fuel for emergency animal welfare call-outs. “Wildlife shelters and rescuers already go through tanks of fuel each week just responding to call-outs for emergency animal welfare,” she said.
The vast majority of wildlife rehabilitation efforts are self-funded by volunteers, supplemented by public donations. However, with the current economic climate, donations have dwindled as people have less disposable income. “Even before the current crisis, fuel vouchers were the most needed assistance but now donations have stopped coming in because people no longer have disposable income,” Heidi noted. The difficult reality is that some shelters may be forced to refuse call-outs, a heart-wrenching prospect for those dedicated to animal welfare.
Farmers Facing a Seeding Crisis
In Western Australia, crop farmer David Butcher is confronting a critical shortage of diesel that threatens his upcoming seeding period. “If we are on rations like the 3,000 litres of diesel we got 10 days ago, that will only do two days of seeding for us,” he explained. His farm requires an estimated 135,000 litres of diesel over a 40-45 day seeding period.
“We’re going to put a $4 million crop into the ground and if we can’t take it out in three to four months time due to no diesel, that money will stay in the ground,” Mr. Butcher said, describing the situation as “so scary.” The combined impact of fuel and fertiliser shortages is expected to significantly affect the winter cropping season, inevitably leading to higher prices for consumers at the supermarket.
The Olive Press and the Diesel Surcharge
Arnaud Courtin, an olive farm owner in WA, has been compelled to implement a diesel surcharge to offset the increased fuel costs. His operation uses off-road diesel to generate electricity for his olive press, as grid power is not available. “Our 2026 price list for contract processing was published in December 2025,” he stated. “The net cost of off road diesel has since jumped from $0.95/L to $2.20/L today, an increase of 220 per cent.”
To mitigate these extraordinary expenses, a 5 per cent diesel surcharge has been introduced. Mr. Courtin also highlighted the growing challenge of fuel supply and storage. “Supply and storage of extra fuel is becoming an issue: no diesel, no processing of mum’s and dad’s olives.”
A Nursery’s Tourist Trade Hit Hard
Merilyn Harris, who owns a small retail nursery in NSW, has also experienced a noticeable decline in customer numbers as fuel prices have surged. Her business is heavily reliant on tourist trade, particularly from retired or semi-retired individuals during weekdays, and a broader demographic on weekends. “The road [a main highway in the Southern Highlands] is quiet, with little traffic outside of morning and afternoon commuters,” she observed. “At the current trajectory of fuel prices, life is looking grim.”
The Outlook for Fuel Prices
The question on everyone’s mind is whether fuel prices will decrease anytime soon. Malcolm Roberts, chief executive of the AIP, described the price impacts from the Strait of Hormuz closure as “astonishing.” He noted that the wholesale price of diesel from Singapore more than doubled from 82 cents per litre before the war to $2 per litre recently. Similarly, petrol prices have risen from 72 cents to around $1.40 per litre.
Mr. Roberts warned that if the Strait remains closed for an extended period, refineries in Asia, which supply approximately 80 per cent of Australia’s refined fuel, will struggle to replenish their inventories. “The big uncertainty is how long production in the region will stay at normal levels and what we have seen is some refineries are trying to conserve their crude oil stocks and reducing their output,” he explained. He added that these refineries may also prioritise their domestic markets, creating further pressure on global supply. “These refineries will also come under pressure to prioritise their domestic market … we all know it’s exceptional circumstances, so we’ll just have to wait and see.”
Current Fuel Stock Levels Across Australia
Energy Minister Chris Bowen provided an update on fuel station stock levels across the country:
- New South Wales:
- 178 stations without diesel.
- 48 stations without any fuel stock.
- Queensland:
- 55 stations without diesel.
- 33 stations without regular unleaded petrol.
- Victoria:
- 45 stations without diesel.
- 75 stations without unleaded petrol.
- Western Australia:
- 40 stations without diesel.
- 14 stations without unleaded petrol.
- South Australia:
- 9 stations without diesel.
- 10 stations without unleaded petrol.
- Tasmania:
- 5 stations without diesel.
- 9 stations without any fuel.
- Northern Territory:
- No reported outages.
