Originally published by Matthew Denholm and Brad Thompson of The Australian
10.03.2026
Regional Australia could permanently lose independent petrol stations and transport companies due to fuel supply turmoil, as farmers report fertiliser shortages and price hikes, and mining companies warn of disrupted operations.
The fallout from fuel price volatility and shortages across parts of regional Australia due to the Iran war continues to grow, with fears emerging of potentially lasting effects across numerous sectors.
ServoPro, the industry body for independent petrol stations, said some were “seriously concerned” they would not survive a cashflow “squeeze” caused by fluctuating fuel prices and supply.
“Operators are genuinely worried about survival … worried they may not get through this financially,” ServoPro founder Dan Armes told The Australian.
“These aren’t people who are prone to panic. They are experienced small business owners who can see the numbers and are seriously concerned about what the next few weeks look like for their businesses.
“Regional sites that close may not reopen. If independents are forced to shut down for an extended period due to supply denial, the losses … mean some will not have the financial capacity to restart.
“That is permanent loss of fuel infrastructure in communities that have no alternative.”
Mr Armes said the problem for many of the 2100 independent service stations his organisation worked with was a “cash flow squeeze” during the time lag between buying wholesale fuel at inflated prices and being able to sell it.
“When terminal gate prices jump 45 to 50 cents per litre in under two weeks, an independent operator buying a standard 36,000-litre load of diesel is now paying roughly $18,000 more per delivery than a fortnight ago,” he said.
“Unlike the majors (big oil companies) with corporate balance sheets, these are small business owners funding that out of cash flow while their retail revenue lags behind.
“With the RBA potentially hiking rates again on 17 March, operators carrying site debt or fuel credit facilities are about to get hit from three directions at once – higher wholesale costs, tighter supply and more expensive debt.”
Mr Armes said small regional fuel retailers were also at risk if prices fell suddenly again.
“If an operator buys a load at today’s elevated price and the wholesale market corrects before they’ve sold it, they’re selling below replacement cost,” he said.
Sunshine Coast service station owner Steve Amos said price shocks and supply shortages were creating cash flow issues for his Aussie World Garage, at Palmview on the Sunshine Coast.
“Our cash flow situation is tight and it’s struggling but we’re still trading and still able to pay for the product in the ground,” he said.
“If it (fuel) carries on going out at the rate it’s been going out, that is going to cause some major problems.”
Mr Amos said his service station, which employs 10, had run out of fuels on several occasions in recent days for hours at a time, and he urged people to stop panic buying.
“There’s been people coming in filling up multiple jerry cans, and utes with fuel tanks on the back,” he said. “Apart from draining what’s available, they’re just saving a couple of dollars on the bowser price.”
Regional transport companies also warned the rapid increase in diesel prices was “placing immediate pressure” on “already extremely tight margins”.
“For many transport businesses the jump of 30 to 60 cents per litre represents a 10 to 20 per cent increase in operating costs almost overnight,” Australian Livestock and Rural Transporters Association president Gerard Johnson said.
“With industry margins typically sitting between 3 and 7 per cent, that level of cost escalation places enormous pressure on the viability of small and medium regional operators.”
Some farmers, meanwhile, reported difficulty obtaining key fertilisers, the supply of which is heavily reliant on shipping through the war-impacted Strait of Hormuz.
National Farmers Federation president Hamish McIntyre said the cost of urea had surged almost 30 per cent in the past month.
“That’s deeply concerning as farmers prepare for winter cropping because tightening supply and soaring costs could mean fewer crops planted and ultimately higher food prices,” he told The Australian, while urging against “panic”.
The Association of Mining and Exploration Companies, with 575 members across Australia, said fuel suppliers were warning its industry to brace for the worst.
“Junior and mid-tier mining companies are reporting they have around five days fuel supply – and are being advised to expect significant disruption from their suppliers,” AMEC chief executive Warren Pearce said.
“These companies are now having to decide how to manage going forward – limit fuel use to part of their plants or continue unchanged, hoping that fuel will become available shortly.
“The mining industry runs on diesel and an interruption to fuel supply will potentially see mines having to shut until fuel becomes available.”
Minerals Council of Australia chief executive Tania Constable said smaller miners and exploration operations in remote Australia were “already facing pressure on fuel supplies and price”.
The Western Australia government is holding a fuel security roundtable on Wednesday, including leaders from mining and LNG industries.
Mr Pearce urged the federal government to talk to major trade partners to ensure there was as little disruption as possible.
“We have always met their needs for reliable supply of energy products, and we now need the same in return,” he said.
“The WA Premier’s roundtable is critical to bring together industry, business and government to prioritise and plan as best we can for what comes next.”
Qantas declined to comment on its fuel supplies but said the volatility in prices was driving up costs, while the government said the nation had a 32-day reserve of jet fuel.
Australian Airports Association chief executive Simon Westaway said airports were monitoring fuel supplies and engaging with the federal government and industry partners.
Additional reporting: Robyn Ironside
