Fuel cost surge adds to mounting pressure on small businesses

The Council of Small Business Organisations Australia (COSBOA) says rising fuel costs and uncertainty around supply are adding to the pressure facing small businesses across the country, with impacts flowing through supply chains and affecting some sectors more than others.

COSBOA CEO, Skye Cappuccio said the impact is being felt across industries, particularly for businesses with limited capacity to absorb further cost increases.

“Many small businesses are feeling the impact of rising fuel costs and uncertainty around supply. It is hitting differently across industries and is often more pronounced in regional areas, but the effects are being felt right across supply chains,” Ms Cappuccio said.

“For businesses operating on tight margins, even small increases in fuel costs can have a direct impact on cashflow and day-to-day operations.”

For many small businesses, fuel remains a core and unavoidable operating cost.

“For tradies, delivery operators, farmers and regional retailers, fuel is not discretionary. It is a daily cost of doing business,” Ms Cappuccio said.

“When fuel prices rise, those costs flow directly into transport, logistics and service delivery, and, where they can, through to customers.”

COSBOA said the current environment reflects a broader pattern of cumulative cost pressures facing small business.

“Fuel is one part of a bigger picture. Small businesses are already managing rising energy, insurance, wage and compliance costs,” Ms Cappuccio said.

“When these pressures combine, it reduces the ability of businesses to absorb shocks, delays investment and places further strain on viability.”

Ms Cappuccio said practical flexibility across the system will be important while pressures remain elevated.

“We encourage banks and the ATO to take a practical and proportionate approach to recovery to help ensure small businesses can maintain cashflow,” she said.

“There is also a role for those contracting with small businesses to take a considered approach, including allowing for renegotiation where input costs have shifted.”

Access to clear and timely information will also be critical.

“Small businesses need as much insight as possible into fuel supply and market conditions so they can plan and make informed decisions,” Ms Cappuccio said.

Looking ahead, COSBOA said small businesses will need governments to be ready to respond if conditions worsen, alongside a continued focus on longer-term policy settings.

“If volatility persists, targeted and time-limited support may be needed to help businesses manage sudden cost increases,” she said.

“At the same time, it is critical we remain focused on the policy settings that support small business productivity, including reducing the cost of doing business, simplifying compliance and enabling investment.”

“Measures that support investment in more efficient vehicles, equipment and technology will help small businesses reduce their exposure to future shocks over time.”

Ensuring reliable fuel supply to regional communities remains essential, particularly for sectors underpinning food production, freight and essential services.

“Small businesses are resilient, but they cannot absorb sustained cost increases indefinitely,” Ms Cappuccio said.

“A stable and supportive operating environment is essential to ensure small businesses remain viable and continue to support their communities.”

-ENDS-

Notes to Editors:

Media contacts:

• Debbie Bradley, Group Account Director, Zadro | debbie@zadroagency.com.au | +61 420 761 189.

• Marlise Beasley, General Manager & Account Director, Zadro | marlise@zadroagency.com.au | +61 423 624 013

About Skye Cappuccio, CEO, COSBOA

Skye Cappuccio was appointed Chief Executive Officer of the Council of Small Business Organisations Australia (COSBOA) in February 2026. She brings extensive experience in stakeholder engagement and strategic advocacy, having worked across multiple peak professional and industry bodies to deliver practical reform outcomes. Skye is focused on ensuring small business voices are embedded in Australia’s economic and regulatory decision-making.

About COSBOA

Founded in 1977, and incorporated in 1979, the Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.

Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy.

www.cosboa.org.au