NCOSS Update: Fuel Cost and Supply Security 

This update provides a snapshot of the feedback received from essential community service organisations across NSW regarding the rapid escalation of fuel costs and supply challenges.

It outlines the current and projected impacts on service delivery and proposes policy responses to ease economic and social risks.

Context 

• Global Drivers: Ongoing conflict in the Middle East continues to disrupt global fuel supplies and prices.
• Current Pricing: As of 2 April 2026, the average price for E10 in NSW was $2.29. This represents a decrease from the peak of $3.38 on 29 March 2026, but remains significantly higher than the $1.75–$1.82 range recorded in mid-2025. Diesel prices were $2.98, compared to around $1.90 in 2025.
• Government Intervention:
  • Excise Cut: A 50% reduction in the fuel excise (equivalent to 26.3 cents per litre) began on 1 April 2026 for a three-month period.
  • Federal Response: The Australian Government announced a four-level National Fuel Security Plan on 30 March to coordinate a national response to the fuel crisis.  Additional $11.7 million in funding to bolster emergency relief and financial counselling across Australia, including $8.5 million amongst 196 Commonwealth-funded Emergency Relief providers. Relief measures for businesses announced on 1 April.
  • State Response: The NSW Government established a Fuel Security Roundtable, taking measures to resolve supply chain pressures, particularly for diesel and regional areas.  The Government also released Fuel security in NSW:Stakeholder communication toolkit to help services to raise awareness of fuel security measures in their communities. FuelCheck app provides real time price of fuel at NSW service stations.

NCOSS Actions to Date 

NCOSS has been actively representing the sector through the following channels:

• Sector Consultation: In the week commencing 30 March, NCOSS hosted two sessions with members and the wider NSW community services sector to understand localised impacts and desired responses.
• NSW Government Engagement: Through March, NCOSS has engaged in direct discussions and correspondence with the Premier, Treasurer, Minister Washington, Minister Sharpe, and the Department of Communities and Justice.
• NSW Government Fuel Security Briefing: NCOSS represented the sector at a stakeholder roundtable hosted by the NSW Government on 1 April.
• Commonwealth Advocacy: Partnered with ACOSS and the COSS Network to meet with Minister Plibersek and provided feedback to the Department of Social Services (DSS) to inform their national strategy.

Current and Emerging Impacts tabled at NCOSS online sector forums

Through discussions with individual members and the two online sector forums hosted by NCOSS, below is a summary of the critical pressures we are hearing:

• Social and Economic Wellbeing: Escalating costs are driving food insecurity, financial distress and psychosocial hazards for community members and sector workers. This is compounded by rising risks of domestic violence and mental health crises linked to financial pressure and isolation.
• Access to essential services: Community members are increasingly cancelling or scaling back attendance at critical medical and community support appointments due to rising costs and limited access.
• Supply Chain Disruptions: Diesel shortages are severely impacting transport and supply chains, risking regional, rural, and remote communities being left isolated and without essential supplies and support.
• Service Delivery Strains:
  • Demand for support is increasing rapidly, putting further strain on already stretched services. This includes emergency financial support, food relief, and mental health support.
  • Unbudgeted costs are straining organisations with already thin financial reserves.
  • Organisations are already reducing outreach and in-home support.
  • Staff are declining additional shifts, and volunteers are withdrawing due to escalating costs, threatening the continuity of support.
• Limited Relief: There are concerns that current fuel excise cuts may not be sufficient to significantly reduce cost pressures for the most vulnerable communities and services.

Proposed Policy Responses

NCOSS is advocating for the following measures to support the sector and the community in the immediate future:

1. Targeted Support: Deliver financial relief to low-income individuals and those most vulnerable to economic shocks.
2. Essential Workforce: Ensure that critical community services are included in the definition of “essential” should fuel rationing or restrictions be put in place.
3. Emergency Surge Funding: Deploy disaster-response style “surge funding” to frontline services to maintain continuity of care.
4. Contractual Flexibility: Ensure that commissioning agencies provide NGOs with flexibility regarding funding and Key Performance Indicators (KPIs).
5. Community Sector Input: Ensure the community sector is directly involved in the design of government communications and responses.
6. Prioritise Supply for Essential Services and Regional Areas: Guarantee fuel supply to essential services to regional and remote areas to prevent disruption to vital support for vulnerable communities.

Next Steps

NCOSS will continue to provide the NSW Government with evidence-based recommendations from the sector. We will issue further updates as the situation develops.

Get Involved:

To share how your organisation or community is being impacted, or if you are willing to speak with the media, please contact: fuelsecurity@ncoss.org.au.