If you’ve opened a recent quote or invoice from a contractor and noticed a fuel surcharge you haven’t seen before — you’re not alone. Across SSKB’s portfolio, committees are flagging exactly this. It’s a direct consequence of the fuel crisis gripping Australia right now, and it’s worth understanding what’s driving it and what your body corporate can do about it.
What’s happening nationally
Australia is facing a serious fuel supply crunch in 2026, driven by geopolitical turmoil in the Middle East that has disrupted global oil flows and exposed the nation’s heavy reliance on imported fuel. The crisis has already begun flowing through to the broader economy, with industries such as trucking and logistics under acute pressure.
Petrol prices have jumped roughly 50 cents per litre since the start of the conflict. Average diesel prices in major cities reached 303.5 cents per litre in the week ending 25 March — up 27.8 cents in a single week — with regional prices climbing even higher.
The federal government has described the situation as a national crisis and has released emergency fuel reserves, while also temporarily lowering fuel quality standards to add roughly 100 million additional litres to the market each month.
In context: Australia imports approximately 90% of its refined fuel, leaving the country highly exposed to global supply disruptions of this kind.
Why does this affect your body corporate?
Strata communities rely on a steady stream of contractors — building managers, cleaners, gardeners, lift technicians, plumbers, electricians, pest controllers — many of whom are now operating at significantly higher costs. Fuel is a direct input for almost every service your building receives.
What this looks like in practice:
- Fuel surcharges being added to contractor invoices, sometimes with little notice
- Higher quotes on new maintenance contracts as businesses factor in elevated running costs
- Potential delays if contractors are consolidating runs or prioritising jobs by geography
- Cost increases flowing through to body corporate levies over time if not managed proactively
Which contractors are adding fuel surcharges — and why
Fuel surcharges aren’t limited to one trade. Almost every contractor your body corporate relies on has fuel as a core operating cost. Here are the most common scenarios committees are encountering right now:
Waste and recycling collection
Waste contractors run fixed routes across multiple sites and are among the first to apply fuel levies. You may see a line item on your invoice labelled ‘fuel adjustment’ or ‘energy surcharge’ — often calculated as a percentage of the base service fee.
Lawn, garden and grounds maintenance
Landscaping crews travel between multiple sites with trailers full of equipment. With diesel prices climbing sharply, many operators are now building a surcharge into both their regular maintenance invoices and any one-off quotes.
Cleaning contractors
Commercial cleaning companies — particularly those servicing multiple buildings in a single run — are absorbing higher travel and supply costs. Some are passing these on as a flat weekly surcharge; others are renegotiating contract rates at renewal.
Plumbers, electricians and trade callouts
Trade contractors typically charge a call-out fee that already includes travel — but with fuel costs at record levels, many are introducing a separate fuel levy on top, particularly for jobs outside metropolitan areas or where travel distance is significant.
Pest control
Pest management providers make regular scheduled visits across their client base. The travel-heavy nature of the work makes fuel a meaningful cost line, and surcharges are increasingly appearing on annual service invoices.
Lift and mechanical services
Lift maintenance and essential mechanical service providers — many of whom operate nationally or across large geographic areas — have been among the earlier adopters of formal fuel surcharge policies, often linked to a published fuel index.
Building and facilities management
Where a building manager is employed externally (rather than onsite), any site visits, inspections, or contractor coordination that involves travel may attract additional cost recovery.
What your committee should be doing now
This is exactly the kind of situation a proactive committee and a responsive strata manager navigate together. Here are the steps worth considering:
Review any new surcharges carefully
A legitimate fuel surcharge should reference a rate or formula and ideally tie to a publicly reported fuel index. If a surcharge appears without explanation, ask for one in writing.
Revisit your maintenance contracts
If you have contracts due for renewal in the next 3–6 months, consider whether locking in rates now (before further escalation) is in your community’s interest.
Communicate transparently with lot owners
If fuel surcharges are contributing to a levy adjustment or a budget variance, committees should explain the external context clearly. Lot owners who understand why costs have shifted are far less likely to dispute them.
Don’t defer essential maintenance
It’s tempting to push back spending during a cost crunch, but deferring maintenance typically results in higher costs down the track — and potential safety or insurance implications.
Remember: Cost avoidance now can create significantly larger expenses later. Your strata manager can help you distinguish between what can wait and what can’t.
What to expect going forward
There has been some recent relief. The federal government halved the fuel excise from 1 April 2026 — reducing the tax on petrol and diesel by 26.3 cents per litre — and prices at the bowser have begun to ease as a result. As of early April, national average unleaded prices had dropped to around $2.35–$2.45 per litre in major cities.
But experts urge caution about reading too much into this. The excise cut is a temporary measure running only until 30 June 2026, and analysts note that even with the cut in place, prices remain well above pre-crisis levels. Before the conflict escalated, Australians were paying roughly $1.60–$1.80 per litre for unleaded.
Industry view: “To get back to pre-war levels, we need the war to end. We also need the Strait of Hormuz to re-open. Until we get a resolution and until this war sorts itself out, unfortunately we just don’t have good news for people.” — NRMA spokesperson
Diesel in particular has proven stubbornly resistant to price relief, with some stations still approaching or exceeding $3 per litre in parts of the country. This matters for strata communities because diesel powers the trucks, utes and heavy equipment that most trade contractors operate.
Supply concerns also haven’t disappeared. Six fuel cargo ships scheduled for April arrivals have cancelled, and while replacements have been secured, the situation remains volatile. If the excise cut is not extended beyond June — and there is no guarantee it will be — prices could spike again almost overnight.
The bottom line for committees: some short-term cost relief may flow through as fuel prices ease at the bowser, but contractors who have already built surcharges into their pricing may be slow to remove them. It is reasonable to ask your contractors whether surcharges will be reviewed as conditions improve.
How SSKB is supporting committees through this
Our team is actively monitoring the situation and if you’ve received a quote or invoice with a fuel surcharge and you’re unsure whether it’s reasonable, your SSKB strata manager can discuss obtaining more information from the contractor with you.
We’re also keeping an eye on broader levy and budget impacts across our portfolio so that committees have the context they need to make informed decisions — not reactive ones.
If you’d like to discuss how this might affect your community specifically, reach out to your strata manager directly.
Want to stay ahead of issues like this?
Register for our next SSKB Strata Series event where we cover practical topics for committees navigating real-world strata challenges.
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