Australia: Fuel supply risks rise amid Middle East war, construction faces new price spikes

Australia is grappling with growing concerns over fuel supplies as the war in the Middle East intensifies, disrupting shipping routes through the Strait of Hormuz and the Red Sea, and damaging key refineries. Experts warn that domestic fuel reserves may only last until mid-April 2026, potentially leading to fuel rationing and petrol prices exceeding $3.00 per litre. The construction industry is also facing renewed price volatility and supply chain issues. ## Latest Update The home building industry is now experiencing COVID-like price spikes as suppliers of materials like sand and concrete introduce 'emergency fuel levies'. Manufacturers of plumbing infrastructure and PVC piping are also warning of potential shortages due to international shipping disruptions and raw material scarcity. ## Timeline * **2026-03-20:** Experts warn that Australia's fuel supply may only last until mid-April due to the Middle East conflict, potentially leading to rationing and price surges. * **2026-03-22:** The home building industry faces COVID-like price spikes and supply chain disruptions due to the Middle East war, with suppliers introducing emergency fuel levies. ## What to Watch * Monitor government actions regarding the potential release of emergency oil reserves and alternative supply chain establishment. * Track petrol prices and the cascading effect on the cost of goods and services. * Pay attention to potential project delays and increased costs in the construction industry.