Fuel Crisis 2026: Your Workplace Rights When Petrol Hits $3/Litre

Australia is in the grip of its worst fuel crisis since the 1970s oil shock. Escalating tensions involving Iran and the Strait of Hormuz — through which roughly 20% of the world's oil supply passes — have sent global crude prices soaring. The flow-on effect for Australian motorists has been severe.

As of late March 2026, the national average petrol price sits at approximately $2.19 per litre, up from around $1.69/L just six months ago. In regional and remote areas where supply chains are longer, prices have breached $3.00 per litre in some locations, with parts of outback Queensland and Western Australia recording prices above $3.20/L.

Making matters worse, Australia holds only around 36 days of fuel supply in reserve — well below the 90-day minimum recommended by the International Energy Agency. The government has begun releasing strategic reserves and lowering fuel quality standards temporarily, but these measures have done little to ease prices at the pump.

For the average Australian worker commuting by car, this crisis translates directly into hundreds or even thousands of dollars in extra costs per year. That raises an important question: what can you actually do about it at work?

Under section 65 of the Fair Work Act 2009, certain employees have the right to request flexible working arrangements — and your employer must respond in writing within 21 days. However, fuel prices alone are not a standalone ground for making a formal flexible work request under the Act.

The eligible categories under s.65 include employees who:

• Are a parent or carer of a child who is school age or younger
• Are a carer under the Carer Recognition Act 2010
• Have a disability
• Are 55 or older
• Are experiencing family or domestic violence
• Support an immediate family or household member experiencing family or domestic violence

If you fall into one of these categories, you can absolutely cite rising fuel costs as a supporting reason in your request. For example, a parent might argue that working from home two days per week reduces commuting costs by $50/week, easing financial pressure on the household. Employers must have reasonable business grounds to refuse, and they must genuinely try to reach agreement on alternative arrangements.

Even if you don't fall into an eligible category, nothing stops you from making an informal request to your employer. Many employers are already recognising that forcing staff to commute five days a week during a fuel crisis is hurting retention and morale. It's also worth noting that Victoria's new WFH law, taking effect on 1 September 2026, will enshrine a right to work from home for at least two days per week for businesses with 15 or more employees — the first such law in Australia.

As of March 2026, the federal government has not introduced a direct consumer fuel rebate or subsidy. Despite calls from motoring groups and the opposition, there is no payment going to individuals to offset petrol costs at the bowser.

What the government has done includes:

• Released 762 million litres from the national strategic fuel reserves to ease supply constraints
• Temporarily lowered fuel quality standards for 60 days to allow a broader range of imported fuel to enter the market
• Established a National Fuel Supply Taskforce to monitor supply chains and prevent price gouging
• Directed the ACCC to increase fuel price monitoring and enforcement activity

Fuel tax credits exist but are a business-only scheme — they apply to heavy vehicles, machinery, and off-road equipment used in industries like mining, agriculture, and transport. They are not available to individual commuters filling up their car for the drive to work.

The government is reportedly considering a temporary fuel excise cut (similar to what was done in 2022 when excise was halved for six months), but no announcement has been made. Any cut would need to weigh the cost — fuel excise currently brings in around $11 billion per year in revenue.

This is one of the most common misconceptions during a fuel crisis: your daily commute from home to work is NOT tax-deductible. The ATO considers travel between home and your regular workplace to be private travel, regardless of the distance, cost, or whether public transport is available.

There are three exceptions where you may be able to claim your commute:

• Home is your base of employment: If your home is where you start and finish work duties (e.g., a visiting nurse or mobile tradesperson), travel from home to clients may be deductible
• Bulky tools: If you need to transport bulky tools or equipment for work and there's no secure storage at your workplace, you may claim the travel
• Itinerant work: If your work requires you to travel between multiple locations throughout the day, with no fixed workplace

If you do qualify for a deduction, you can choose between two methods:

• Cents per kilometre: Claim 88 cents per km (2025-26 rate) for up to 5,000 business kilometres = maximum deduction of $4,400. No receipts required, but you need to be able to show how you calculated the distance
• Logbook method: Keep a 12-week logbook to establish your work-use percentage, then claim that percentage of all car expenses (fuel, rego, insurance, depreciation, servicing). No kilometre cap — better if you drive a lot for work

Whether you're making a formal request under section 65 or an informal one, a well-prepared approach dramatically improves your chances. Here's a step-by-step process:

• Step 1: Check your eligibility. Review the s.65 eligible categories listed above. If you qualify, you have a legal right to request and your employer must respond within 21 days. If you don't qualify, you can still make an informal request — it just won't carry the same statutory weight.
• Step 2: Put it in writing. Always make your request in writing (email is fine). This creates a record and triggers the 21-day response clock for formal requests.
• Step 3: Cite section 65 explicitly. If you're making a formal request, reference s.65 of the Fair Work Act. State which eligible category you fall under and that you are making a formal flexible work request.
• Step 4: Propose a specific arrangement. Don't just say "I want to work from home." Propose something concrete — e.g., "I'd like to work from home on Tuesdays and Thursdays, attending the office Monday, Wednesday, and Friday." Show you've thought about how it works operationally.
• Step 5: Explain how it benefits both parties. Mention reduced commuting costs (be specific — e.g., "$52/week in fuel savings"), improved focus time at home, and continued availability via video and chat. Cite the fuel crisis as a practical supporting reason.
• Step 6: Keep records. Save copies of your request, any responses, and follow-up communications. If your request is refused, your employer must provide written reasons — and you may be able to dispute the refusal through the Fair Work Commission.

You can use our flexible work request template to get started — it's pre-filled with the right legal references and structure.

Let's put some real numbers to the fuel crisis impact on the average Australian commuter.

Assume a typical round-trip commute of 40 kilometres per day, driving 5 days per week, in a car that uses 10 litres per 100km (a mid-size sedan). That's 200km per week, or 20 litres of fuel.

• At pre-crisis prices ($1.69/L): 20L × $1.69 = $33.80/week = $1,757/year
• At current prices ($2.19/L): 20L × $2.19 = $43.80/week = $2,278/year
• At regional prices ($3.00/L): 20L × $3.00 = $60.00/week = $3,120/year

That's an extra $520/year at current metro prices, or a staggering $1,363/year at $3/L — and that's before you count parking, tolls, or vehicle wear and tear. For workers on the minimum wage ($24.10/hr), the extra $10/week in fuel represents almost half an hour of pre-tax wages lost to just getting to work.

Use our fuel crisis calculator to calculate your personal impact based on your actual commute distance, fuel consumption, and local prices. You might be surprised — or motivated to have that WFH conversation with your boss.

While you work on longer-term solutions like WFH arrangements, here are practical steps you can take immediately to reduce the hit:

• Carpool with colleagues: Even sharing with one other person halves your fuel cost. Check if anyone on your team lives nearby — many workplaces are setting up informal carpool boards
• Use public transport where possible: Even one or two PT days a week saves significant fuel. A weekly Opal/Myki/Go Card fare is often less than the fuel cost alone
• Negotiate WFH days: Even one day per week saves 20% of your commuting costs — that's $104/year at current prices for the average commuter
• Combine trips: Do grocery shopping, appointments, and errands on the way home from work rather than making separate trips
• Check tyre pressure: Under-inflated tyres increase fuel consumption by up to 3%. Check monthly and inflate to the manufacturer's recommended PSI
• Use fuel price comparison apps: Apps like FuelMap, Petrol Spy, and the NRMA app can save you 10-20c/L by finding the cheapest nearby station. On a 50L tank, that's $5-10 per fill
• Drive smoothly: Aggressive acceleration and braking increases fuel use by 15-30%. Maintain steady speeds and anticipate traffic flow
• Fill up early in the week: Fuel prices in metro areas typically follow a weekly cycle, with the cheapest prices on Tuesday or Wednesday in most capital cities

Every dollar saved on fuel is a dollar that stays in your pocket — and unlike a pay rise, it's tax-free.