States to seek consistent reporting of fuel shortages<\/a><\/p>\nState and territory leaders are also expected to push for a national approach to any further measures including fuel rationing.\u00a0<\/p>\n
Australia’s national fuel supply remains at the same level as before the Middle East war began, but future shortages remain a risk depending on how long the conflict disrupts the international flow of oil.<\/p>\n
Even with sufficient fuel in the country, operators across the transport, agriculture and building sectors have warned higher costs are challenging the viability of their businesses.<\/p>\n
The national average price of diesel reached $3.14 a litre and unleaded was $2.56 a litre on Thursday, according to the NRMA.<\/p>\n
Civil construction contractors to seek government top-ups<\/p>\n
As a first step to understand the extent of the cost impact, the Civil Construction Federation (CCF) has created a tool to help companies calculate the impact of soaring fuel prices so they can then negotiate extra funds to deliver the infrastructure.<\/p>\n
CCF chief executive Nicholas Proud told the ABC the sector was highly reliant on diesel, which was the source of about 79 per cent of its energy usage.<\/p>\n
He said high diesel prices meant it was “inevitable” there would be some slow down in projects starting, but for builds already underway a “cost recovery option” was needed.<\/p>\n
Mr Proud said about 7.75 per cent of any tender was the cost of diesel, which meant on a billion-dollar project the adjusted price equated to about an extra $46 million.<\/p>\n
“That impacts the viability of a project at low percentage, and we need to talk to government, obviously with national cabinet next week, to consider about how we’re going to recover that through working with governments and flexibility in contracts,” he said.<\/p>\n
Mr Proud said once government projects were shored up the sector would have to consider how to get private developers to contribute to the extra diesel cost.<\/p>\n
“We know it’s going to be a challenge there,” he said.<\/p>\n
‘Existential’ threat sparks panic buying<\/p>\n
Housing Minister Clare O’Neil said the government was seeing “real challenges” across the economy arising from the situation in the Middle East.<\/p>\n
“That of course is hitting the building sector,” she said.<\/p>\n
“I’m meeting regularly with industry leaders to understand the conflict’s impact on home building and understand what assistance government can provide.”<\/p>\n
![\"Lady](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/d4850795afc9a85174d3fb13723cd0e1.jpeg\")
<\/p>\n
Clare O’Neil says she is meeting regularly with the industry.\u00a0 (ABC News: Luke Stephenson)<\/p>\n
Ms O’Neil said while there was a general increase in operating costs and materials, the “most immediate vulnerability” was PVC piping sourced from Asia.<\/p>\n
“We’re exploring potential alternative providers in other global markets, but we remain clear-eyed that this supply crunch is being experienced around the world,” she said.<\/p>\n
Gold Coast man Peter de Luca runs a plumbing business and told the ABC he had decided to stockpile enough plastic pipe for the next 12 months.<\/p>\n
“Not being able to fulfil our contractual obligations is a real worry for us,” he said.<\/p>\n
Asked if he thought this amounted to panic buying, Mr de Luca said he could “understand” people viewing it that way.<\/p>\n
“But the reality is that it’s an existential issue for us,” he said.<\/p>\n
“If we’ve got contractual obligations and if we were to not meet those, we would be out of business and gone.”<\/p>\n
Builders want ‘flexibility’ on completion dates<\/p>\n
Master Builders Australia chief executive Denita Wawn said the flow-on impact of high oil prices was significant across the construction sector.<\/p>\n
“Builders are reporting surcharges of $8 per cubic metre for concrete, $3 per cubic metre for skip bins as examples, with increases of above 28 per cent to plastic piping products,” she said.<\/p>\n
“These figures may seem small however when dealing with invoices worth hundreds of thousands, they quickly compound.”<\/p>\n
![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/1774557670_975_626f50e050ba8b1d357c94131ca63e5c.jpeg\")
<\/p>\n
Denita Wawn says “flexibility” on projects was needed during the crisis.\u00a0 (ABC News: Stuart Carnegie)<\/p>\n
Ms Wawn said risings costs were placing pressure on suppliers and subcontractors who are imposing fuel surcharges.<\/p>\n
“Due to fixed price contract arrangements, most builders are being forced to absorb these cost increases,” she said.<\/p>\n
“This could flip many home building projects from profitability to being loss making for the builders concerned.”<\/p>\n
Ms Wawn said builders needed “flexibility” from government and private sector clients on completion dates, while where possible contracts must enable the sharing of unexpected cost increases due to the oil crisis.<\/p>\n
“Building and construction must be a priority for decision-makers in terms of ensuring supply,” she said.<\/p>\n
“If you stop the construction of homes, we’re going to go further backwards than we already are in meeting those housing supply targets.”<\/p>\n
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