Survey highlights fuel crisis cost pressure on business

Victorian businesses are being forced to cut costs, change operations and brace for further disruption as the fuel crisis continues to ripple through the economy, the survey finds.

Key findings

• Nine in 10 businesses say fuel shortages have already driven up costs
• 37 per cent are experiencing increases of more than 25 per cent – a burden many say they can no longer absorb.
• Less than half of businesses (47 per cent) say they feel confident managing the next four weeks, while 32 per cent say government support is needed immediately.

Businesses across transport, construction, manufacturing, retail and services are adapting quickly, but the impacts are becoming harder to contain.

Many have already passed costs on to customers, changed delivery models or reduced operating hours. Others report they are delaying jobs, scaling back production or considering workforce reductions if conditions persist.

Behind the data is a growing sense of concern from business owners and operators on the ground.

Some warn supply chains are slowing to a crawl, with freight costs “going through the roof” and delivery delays threatening their ability to operate. Others say rising fuel prices are making it harder for staff to get to work, putting service delivery at risk.

For industries reliant on mobility – including in-home care, construction and transport - the situation is particularly acute, with some businesses warning they may not be able to continue operating if fuel becomes unavailable.

There are also growing fears about the broader economic impact, with businesses pointing to rising inflation, falling customer confidence and the risk of a wider slowdown if conditions continue.

Businesses have been clear on what they need most – immediate cost relief and clearer, more coordinated communication from government.

At the same time, many are calling for more decisive action to stabilise supply, manage price pressures and ensure essential industries can continue to operate.

The Victorian Chamber will continue to provide daily updates to government based on direct feedback from businesses, ensuring decision-makers have real-time insight into the evolving impacts of the crisis.

Businesses are strongly encouraged to continue participating in the survey every 3-4 weeks, with ongoing engagement critical to shaping practical, targeted responses that reflect what is happening on the ground.

View the updates and survey link

Victorian Chamber Chief Executive Sally Curtain said: “Victorian businesses are doing everything they can to adapt, but the reality is this crisis is now biting - and it’s biting hard. We’re seeing businesses cut hours, absorb costs where they can and make difficult decisions just to keep operating.

“What’s coming through clearly is that this is no longer a future risk - it’s a current, real and escalating challenge. Supply chains are slowing, costs are rising rapidly and confidence waning.

“With Easter this weekend, we’re already hearing from tourism and hospitality operators who are at the pointy end of this – facing last-minute cancellations and growing uncertainty during what should be one of their busiest periods.

“Economists are already warning that broad-based responses which add to inflation will ultimately hit every household – particularly mortgage holders – through higher interest rates. There is also growing concern that this could tip the economy towards a broader slowdown if not handled carefully.

“Victoria is particularly exposed. We are the freight, logistics, manufacturing, agricultural and construction capital of the country – industries that rely heavily on fuel, diesel and petrochemical inputs like plastics, fertiliser and bitumen. When these sectors are under pressure, the impact doesn’t stay contained – it flows through the entire economy.

“The decision to reduce the heavy vehicle road user charge to zero is a welcome and practical step that will provide some immediate relief, particularly for transport and logistics operators, but we need to go further.

“Rather than broad, economy-wide measures, the focus now needs to shift quickly to targeted, industry-specific support and place-based measures, particularly for sectors that keep goods moving, projects underway and communities functioning."