Fuel costs continue to pressure Queensland

Key takeaways: 

• Queensland exporters across fuel-intensive industries (including agriculture, mining and transport) remain exposed to elevated fuel costs driven by global market volatility. 
• Australia’s reliance on imported refined fuels continues to expose exporters to global market instabilities and rising operating costs. 

The Australian Government’s temporary fuel excise relief that was introduced in response to the Middle East conflict officially ended on 2 August 2026. The ceasing of this relief measure, combined with ongoing geopolitical tensions, has highlighted Australia's reliance on imported fuels and its exposure to disruptions in global fuel supply chains, oil markets and key shipping routes. 

Australia imports almost 80% of its refined fuel, much from refineries across Asian markets that rely on Middle Eastern crude oil. Domestic fuel prices remain highly exposed to disruptions in global fuel supply.  

Recent Australian Competition and Consumer Commission (ACCC) monitoring shows petrol and diesel prices have risen following fuel excise changes and ongoing conflict in the Middle East (ACCC; ABC). Regional areas are expected to be impacted the most, particularly across agricultural, transport and mining industries, that operate over large distances, rely heavily on diesel-powered equipment, and often face higher logistics costs than metropolitan-based businesses (ACCC). 

These cost pressures are beginning to flow through supply chains. Across, Australia, road freight prices increased by 15.5% in the June quarter of 2026, due to higher fuel costs. This indicates some of the increase is being passed onto businesses acquiring freight and logistics services. For exporters in regional Queensland, these increases may compound existing transport and logistics challenges.

What this means for Queensland exporters: 

• Fuel-price volatility can make transport costs and forward contract pricing less predictable, particularly for freight-intensive and regional exporters.
• Higher fuel costs are contributing to increased domestic freight and supply chain costs, as some logistics providers are beginning to pass on higher operating costs to businesses.
• Regional exporters face greater exposure to rising operating costs, where long distances, diesel-powered equipment and limited transport alternatives constrain fuel savings.

While fuel supplies remain stable, elevated prices and ongoing global uncertainty mean fuel-related cost pressures are likely to persist for Queensland exporters and businesses, particularly those with transport, freight or diesel fuel exposure.