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Whilst there was a lot of negative impacts of the Covid-19 pandemic in 2020, this global and national challenge taught Australians about the importance of proactively planning and adapting to their working conditions to suit economic conditions.
With news of a looming ‘fuel crisis’ in 2026, it is of the importance of being prepared with a business continuity plan in place for our businesses to ensure that we can continue to operate in a time of crisis
In this blog, we discuss the potential impacts a fuel crisis may have on Australian businesses, consideration for business owners to ensure they can adapt to changing business conditions and prepare for the unexpected.
What Is the Australian Fuel Crisis?
The Australian fuel crisis commenced in early March 2026 as a result of the escalation of the hostilities between the United States and Isreal coalition. The key turning point was the closure of the Strait of Hormuz, a critical global oil shipping route witch a large portion of the world’s fuel supply passes. This closure caused immediate disruptions to oil and gas exports from the Middle East, which flow through to Australia. To date, Australia has suffered from cancelled or delayed fuel shipments and rapid price spikes to the cost of fuel.
As Australia largely imports most of its fuel supply, many businesses are concerned about fuel supply shortages. . News sources are already reporting the fuel reserves are becoming more limited as these disruptions continued. A number of regional areas within Australia are already experiencing shortages and even running dry.
Impact on Business
Should the fuel crisis continue, industry experts and news sources are predicting impacts on Australian businesses may include
- Rapid cost escalation and margin pressure, particularly for the transport, logistics, mining, construction and agriculture industries requiring diesel to operate (The Courier Mail, 2026) (ABC News, 2026).
- Supply chain disruption and delays for freight which may lead to reduced inventory availability (9News, 2026) (ABC News Australia, 2026).
- Workforce restructures and whether there is a need to reduce hours, stand down staff or lay offs due to rising costs and reduced activity (The Advertiser, 2026).
Whilst the news media is not always the most reliable source for predictions and information the reports should not be ignored. Businesses should carefully evaluate the information and consider how it relates to them. First and foremost, businesses should ensure that they are prepared should further impacts need to occur.
Preparing In Uncertainty
Whilst continued impacts from the fuel crisis are not guaranteed, having a risk management plan to consider business continuity is crucial.
Reducing Fuel Dependency
As one of the most likely to be impacted industries, transport and logistics businesses should assess how they may reduce their fuel dependency where possible. Reducing fuel consumption may be done by:
- Optimising routing, scheduling and kilometres travelled
- Consolidating deliveries to be less frequent but higher volume runs
- Exploring alternative coverage such as enlisting subcontractors with different fuel exposure.
Risk Management Plan
Our consultants recommend management teams come together to discuss the ‘what if’ scenarios for their business, considering;
- What would our operations look like with we had ½ the fuel supply we currently have?
- What might happen if our employees have no access to fuel?
- What trigger points should we watch out for to change our operations?
- Do we have an ability to pause current projects?
- When do we decided our services need to be reduced or temporarily shut down?
Compiling these questions and answers, we recommend the development of a Fuel Shortage Response Plan to detail your approaches to overcome these challenges.
Importance of Consultation and Psychosocial Risk Management
Regardless of the choice you may make to respond to the fuel crisis, including the changing of rosters or travelling arrangements, consultation plays an important role in managing change effectively.
In light of the obligations provided for in the Work Health Safety Act 2011 (Cth) and Fair Work Act 2009 (Cth), employers have the responsibility to consult their employees regarding changes that could potentially impact their health and safety. Moreover, in accordance with the code of practice titled ‘Managing the Risk of Psychosocial Hazards at Work’, employers have a positive responsibility to proactively eliminate or mitigate risks to the psychosocial health of their employees. A Psychosocial Risk Assessment can help your company assess the risks associated with the fuel crisis.
It is highly likely that your employees may be concerned about the future fuel crisis. Communication is essential to managing their psychological health.
Jurisdiction | Main legal framework | What stands out |
Victoria | Occupational Health and Safety (Psychological Health) Regulations 2025 (Vic); Compliance Code: Psychological Health (2025) | Victoria has a standalone psychological health regime outside the harmonised WHS system, with specific duties to identify psychosocial hazards, control risks, and review and revise controls. (WorkSafe Victoria) |
New South Wales | Work Health and Safety Regulation 2025 (NSW); Code of Practice: Managing Psychosocial Hazards at Work | NSW has explicit psychosocial risk provisions supported by an approved Code of Practice, with a strong regulator focus on education, compliance and enforcement. (NSW Legislation) |
Queensland | Work Health and Safety Regulation 2011 (Qld); Managing the risk of psychosocial hazards at work Code of Practice 2022 | Queensland places clear emphasis on managing psychosocial risks through practical, work-based controls and consultation, supported by a dedicated Code of Practice. (WorkSafe Queensland) |
South Australia | Work Health and Safety Act 2012 (SA); Managing Psychosocial Hazards at Work Code of Practice (February 2026) | South Australia now has an explicit psychosocial risk framework supported by an approved code and practical regulator guidance. (SafeWork SA) |
Western Australia | Work Health and Safety Act 2020 (WA); Work Health and Safety (General) Regulations 2022 (WA); Psychosocial hazards in the workplace: Code of practice | WA operates under its own WHS framework and supports psychosocial risk management through a dedicated code of practice and regulator guidance. (WorkSafe WA) |
Tasmania | Work Health and Safety Regulations 2022 (Tas); Managing psychosocial hazards at work Code of Practice | Tasmania supports compliance with practical tools and guidance, including resources to help businesses identify, assess and manage psychosocial hazards. (WorkSafe Tasmania) |
Northern Territory | Work Health and Safety (National Uniform Legislation) Regulations 2011 (NT); Managing psychosocial hazards at work Code of Practice (approved 2024) | The NT manages psychosocial risks through its National Uniform Legislation framework, supported by an approved code and clear regulator guidance. (WorkSafe NT) |
Australian Capital Territory | Work Health and Safety (Managing Psychosocial Hazards at Work Code of Practice) Approval 2023 (ACT); Work Health and Safety Amendment Regulation 2023 (ACT) | The ACT has a formally approved psychosocial hazards code backed by regulation changes and regulator guidance on implementation and compliance. (WorkSafe ACT) |
Commonwealth | Work Health and Safety Regulations 2011 (Cth), regs 55A–55D; Commonwealth Work Health and Safety (Managing Psychosocial Hazards at Work) Code of Practice 2024 | The Commonwealth regime creates an express psychosocial risk duty for Comcare-regulated employers, giving a consistent federal framework. (comcare.gov.au) |
Consultations regarding the fuel crisis can be made up of:
- Transparent communications regarding any worries that the business may have before making their decisions,
- Toolbox meetings to address any psychosocial hazards,
- Meeting with the team to consider any solutions to the problem,
- Sending out emails detailing any changes made and important information, and
- Sending out surveys to gain employee feedback.
Early involvement by the employees tends to result in a better solution and improved morale when working through difficult times.
Workforce Planning & Flexibility
With changes to the price and availability of fuel, businesses should consider how they can make their workforce more agile.
Flexibility measures that may suit your business, may include:
- Adjusting rosters to reduce travel (i.e., clustering jobs geographically, reduce number of days in office)
- Cross training employees to maintain coverage should a particular area be disrupted
- Prepare contingency plans for reduced hours should workload drop
- Request employees work remotely from home.
Changes to working hours and conditions should always be consulted with your workforce along with a clear policy to provide clarity and guidelines.
If your business can have employees working from home it is important to ensure that this can be covered under your WorkCover insurance policy and that all employees complete a Working from Home Risk Assessment.
Temporary Shutdown
Should supply shortages and availability worsen, do you know whether your business has the legal capability to temporarily shut down or stand down its employees in the worst-case scenario?
Now is the perfect time to review your Company Manuals, Shut Down Policy and employment agreements to ensure there is an ability already in place and communicated prior to any stand downs or shutdowns.
If your business does not have stand down provisions or a shutdown policy, you cannot action this without exposing your business to significant legal exposure.
Feeling Unsure On How to Approach Preparation? We Are Here For You
If you’re navigating the impacts of the fuel crisis and considering changes to your workforce, now Is the time to prepare to get it right before risks escalate. The Bramwell Partners team can deliver tailored advice for your business to prepare and ensure that your plan remains legally compliant,
Simply contact us by calling 07 3630 5695 or emailing enquires@bramwellpartners.com.au for a free consultation on how we can support you.
Reference List
ABC News (2026) Government agency found fuel supply crisis would have ‘significant impact’ months before Iran war, 22 March. Available at: https://www.abc.net.au/news/2026-03-23/fuel-shortage-warning-from-government-agency-before-iran-war/106471528 (Accessed: 14 April 2026).
9News (2026) Experts warn of 50 per cent food price spike as fuel crisis deepens, 20 March. Available at: https://www.9news.com.au/national/experts-warn-of-50-percent-food-price-spike-as-fuel-crisis-deepens/2a78bc14-b7c8-470d-9515-751baa999b51 (Accessed: 14 April 2026).
ABC News Australia (2026) Experts warn fuel rationing could be just days away, YouTube video, 15 March. Available at: https://www.youtube.com/watch?v=uj4VQMWq_5U (Accessed: 14 April 2026).
The Courier-Mail (2026) ‘Running out of money’: NT industries on the brink, 9 April. Available at: https://www.couriermail.com.au/news/northern-territory/nt-industries-warn-they-are-at-the-brink-amid-fuel-crisis/news-story/3ac4e4594d5fc49813d4983aff2ba661 (Accessed: 14 April 2026).
The Advertiser / Adelaide Now (2026) Jobs cull looms as crippling effects of fuel crisis bites SA businesses, 9 April. Available at: https://www.adelaidenow.com.au/news/south-australia/sa-business-chamber-survey-finds-22-per-cent-of-businesses-surveyed-may-axe-staff-over-fuel-crisis/news-story/c88dba3e310dc33fe8a14f27b91f845e (Accessed: 14 April 2026).
