The conflict in the Middle East is continuing to place pressure on global fuel and freight supply chains, creating flow-on impacts for Australian businesses.
While the Australian Government has confirmed that Australia’s fuel supply remains secure in the short term, businesses – particularly those in regional areas – may experience localised disruptions, higher costs and longer delivery times over coming weeks and months.
For regional businesses that rely on freight, fuel, imported goods, fertiliser, machinery, or overseas supply chains, now is the time to plan ahead.
What Could This Mean for Regional Businesses?
Businesses may experience:
- Higher fuel prices
- Delays in freight and deliveries
- Increased costs for imported goods and raw materials
- Reduced availability of some products or transport services
- Greater uncertainty and volatility across supply chains
The global supply chain is now facing its most significant period of instability since the COVID-19 pandemic. Australian exporters and importers should expect:
- Higher international sea and air freight rates
- Reduced shipping and freight service options
- Longer transit times
- Ongoing volatility across major trade routes, including Asia, Europe and the Middle East
Support Available
Economic Resilience Program
The Australian Government’s Economic Resilience Program is providing interest-free loans to businesses involved in critical supply chains, including:
- Fuel suppliers
- Fertiliser businesses
- Other businesses essential to keeping supply chains moving
These loans are designed to help businesses manage cash flow, maintain stock and respond to short-term disruption.
Fuel Excise Reduction
To help offset rising fuel prices, the Australian Government has temporarily reduced the fuel excise on petrol and diesel by 32 cents per litre. This reduction will remain in place until 30 June.
Heavy Vehicle Road User Charge Relief
To support freight operators and businesses relying on road transport:
- The Heavy Vehicle Road User Charge has been reduced to zero for three months
The next scheduled increase to the charge has been deferred by six months - This may help reduce operating costs for transport businesses and businesses dependent on freight.
If Your Business Ships To or Through the Middle East
If your business imports, exports, or ships goods through the Middle East, there are several steps you should take now:
Speak With Your Logistics Providers Early
Engage with freight forwarders, shipping companies and transport providers as early as possible to understand:
- Potential delays
- Alternative shipping routes
- Changes to pricing
Available capacity
Review Your Insurance Coverage
Check your business, freight and cargo insurance policies to understand whether conflict-related delays, losses or increased costs are covered. You may wish to speak with your insurer or broker about whether additional cover is needed.
Communicate With Customers and Suppliers
Be proactive in letting customers and suppliers know about:
- Potential delays
- Cost increases
- Changes to delivery timeframes
- Any alternative arrangements you may need to make
Clear communication can help manage expectations and reduce disruption.
Practical Steps Businesses Can Take Now
Regional businesses can improve resilience by:
- Reviewing stock levels and ordering critical supplies earlier
- Identifying alternative suppliers or transport routes
- Building additional time into delivery schedules
- Monitoring fuel and freight costs closely
- Considering whether higher transport or input costs need to be reflected in pricing
- Staying informed about changes to supply chains and government support
Stay Informed
The situation is evolving quickly, and advice may change as the conflict develops. Businesses are encouraged to regularly check the latest updates, support measures and information through business.gov.au
By planning ahead and staying informed, regional businesses can reduce risk and better navigate ongoing disruption.
