1. The 2026 Fuel Crisis: What Happened
The closure of the Strait of Hormuz following the Iran conflict in February–March 2026 triggered the largest disruption to global energy supply since the 1970s oil crises. Approximately 20% of global oil supply transits the Strait. Its closure sent Brent crude surging from ~$78/barrel to a peak of $126/barrel — a 60%+ increase in under four weeks.
For Australia, 70–80% of our refined petrol and diesel arrives via Asian refineries dependent on Hormuz transit routes. The Australian Government halved the fuel excise from 52.6c/L to 26.3c/L from 1 April to 30 June 2026 — providing some relief, but not fully offsetting the 40–60% increase in underlying fuel costs.
| Fuel Type | Pre-Crisis (Feb 2026) | Current (April 2026) |
|---|---|---|
| Unleaded Petrol (AU) | ~$1.70/L | $2.35–$2.45/L |
| Diesel (AU) | ~$1.85/L | $2.73–$3.00+/L |
| US Gasoline | ~$3.01/gal | $3.96–$4.00+/gal |
| US Diesel | ~$3.89/gal | $5.37+/gal |
| Brent Crude (Global) | ~$78/barrel | $96–$126/barrel |
Sources: GlobalPetrolPrices.com, NRMA Weekly Fuel Report, IEA 2026 Energy Crisis Tracker, US EIA
2. Impact on Restoration Firms by Size
Fuel is a disproportionate cost for mobile service businesses. Every job requires driving to site — often with heavy equipment. Diesel powers the vans, truck-mounted extractors, trailer dehumidifiers, and generators. With diesel approaching $3.00/L (up from ~$1.85/L pre-crisis), a single van running 150km/day costs an additional $15–$25/day in fuel alone.
| Factor | Small (1–3 vans) | Medium (4–15 vans) | Large (16+ vans) |
|---|---|---|---|
| Fuel as % of revenue | 8–15% | 6–10% | 4–7% |
| Monthly fuel cost increase | $400–$1,200/mo | $2,000–$8,000/mo | $10,000–$50,000+/mo |
| Route optimisation capacity | Limited | Moderate | Strong — zone routing |
| Ability to absorb cost | Very low | Moderate | Higher — scale advantage |
| Recommended approach | Flat surcharge per job | Tiered % surcharge | Contract renegotiation + % |
3. Global Industry Response: What Others Are Charging
🇺🇸 United States
- USPS: 8% fuel surcharge on packages (March 2026)
- Amazon: 3.5% fuel and logistics surcharge
- HVAC/Plumbing: $10–$15 flat per service call
- Pest control: 3–5% surcharge on invoices, monthly review
- Construction: 8–10% surcharges now standard
🇦🇺 Australia
- Concrete suppliers: $8.10–$8.67 per m³ surcharge
- Construction: 8–10% fuel surcharges on projects
- Logistics/freight: Variable, tied to weekly diesel index
- ACCC position: Actively monitoring — surcharges must be justified by actual cost increases
Lesson from the 2022 Fuel Spike
When US gas hit $4.25/gallon in 2022, contractors split into two camps. Camp 1 added a visible fuel surcharge as a separate line item ($10–$15/call). Camp 2 quietly raised base rates by 5–8%. When prices dropped, Camp 1 could visibly remove the surcharge — generating client goodwill. Camp 2 never lowered rates back down, creating silent resentment.
Use a visible, separate line-item surcharge. It aligns with NRPG's "Who First" philosophy — transparency with the people you serve.
4. Fair Pricing: What to Charge
// The Formula
Fuel Surcharge = (Current Price − Baseline Price) × Avg Litres Per Job
• Baseline: price/litre when you last set your rates (~$1.85/L diesel pre-crisis)
• Current: this week's average diesel at your local station (check AIP or NRMA)
• Avg litres: total litres used per week ÷ total jobs per week (travel + equipment run time)
Worked Examples by Firm Size
Small Firm (1–3 vans, residential carpet cleaning)
- • Van uses ~60L diesel/week across 15 jobs → 4L per job
- • Baseline: $1.85/L | Current: $2.73/L
- • Surcharge = ($2.73 − $1.85) × 4L = $3.52
✓ Recommended: $5.00 flat per job (rounded to cover volatility + equipment fuel)
Medium Firm (4–15 vans, mixed residential/commercial)
- • Fleet uses ~500L/week across 80 jobs → 6.25L per job
- • Surcharge = ($2.73 − $1.85) × 6.25L = $5.50 (~1.6% on $350 job)
✓ Recommended: 2–3% of invoice OR $5–$10 flat (whichever fits your billing system)
Large Firm (16+ vans, insurance/commercial restoration)
- • Fleet uses ~2,000L/week across 150 jobs → 13.3L per job (heavy equipment, generators)
- • Surcharge = ($2.73 − $1.85) × 13.3L = $11.70 (~0.5% on $2,500 job)
✓ Recommended: 3–5% of invoice for insurance-billed work. Cap at $50–$75 for jobs $5,000+
| Firm Size | Method | Amount | On $300 Job | On $2,500 Job |
|---|---|---|---|---|
| Small (1–3 vans) | Flat per job | $5.00 | +$5.00 (1.7%) | +$5.00 (0.2%) |
| Medium (4–15 vans) | Flat or % of invoice | $5–$10 or 2–3% | +$6–$9 (2–3%) | +$50–$75 (2–3%) |
| Large (16+ vans) | % of invoice (capped) | 3–5% (cap $75) | +$9–$15 (3–5%) | +$50–$75 (capped) |
5. How to Implement Without Backlash
Rule 1: Name it honestly
Call it a "Temporary Fuel Surcharge" — never bury it in "service fees" or "admin charges." The word temporary is critical. It signals this will go away when prices normalise.
Rule 2: Show it separately
The surcharge must be its own line item on the invoice. Not bundled into the job cost. This makes it visible, auditable, and removable.
Rule 3: Tie it to a public index
Reference the AIP national average or the NRMA weekly fuel report. This makes it objective — not a discretionary markup.
Rule 4: Announce before you charge
Give clients 7–14 days notice. An email, a website notice, and a mention during booking confirmations. Never surprise someone on the invoice.
Rule 5: Remove it when it's over
When diesel drops below your trigger point, publicly remove the surcharge. The 2022 contractors who removed theirs saw measurable client retention improvements.
Invoice Line Item Format
| Service description | 3-bedroom carpet clean (steam extraction) | |
| Service fee | $320.00 | |
| Temporary Fuel Surcharge* | $5.00 | |
| GST (10%) | $32.50 | |
| TOTAL | $357.50 |
6. ACCC Compliance: Staying on the Right Side
⚠️ The ACCC is actively monitoring fuel surcharges across Australia.
Several businesses have already been served notices requiring them to justify surcharges, particularly those exceeding 70% in remote areas.
7. Beyond Surcharges: Reducing Fuel Cost Impact
Route optimisation
Cluster jobs geographically. A 20% reduction in driving = 20% reduction in fuel cost per job. Use routing software if you have 4+ vans.
Minimum job values
If a job doesn't meet a minimum revenue threshold for travel distance, decline it or add a travel fee. The crisis is the right time to enforce this.
Fuel tax credits
Businesses operating heavy vehicles (>4.5t GVM) for off-road use can claim fuel tax credits via the ATO. Diesel used in machinery (generators, extractors) earns a credit of 21.4c/L.
Bulk fuel purchasing
Negotiate bulk diesel delivery from Viva Energy, BP, or local distributors. Even 5–8c/L savings on 2,000L/week = $100–$160/week.
Fleet card programmes
Shell, BP, or Ampol fleet cards offer 2–6c/L discounts and consolidated billing — making fuel cost tracking easier for surcharge justification.
Frequently Asked Questions
Is it legal to charge a fuel surcharge to insurance clients in Australia?▾
How much fuel surcharge should a small restoration firm charge?▾
What index should I reference for my fuel surcharge?▾
When should I remove the fuel surcharge?▾
Can policyholders claim fuel surcharges through their insurance?▾
Bottom Line
A fair fuel surcharge for carpet cleaning and restoration firms in the current crisis sits between $5–$10 per residential job or 2–5% of invoice value for commercial/restoration work, capped at $50–$75 for large jobs. This is defensible, proportionate to actual cost increases, and aligned with what major industries are charging (USPS at 8%, Amazon at 3.5%, construction at 8–10%).
The key to avoiding backlash is transparency. Name it clearly. Show it separately. Tie it to a public index. Remove it the moment you can. That's how you pass on costs without losing trust — and it's exactly what "Who First" looks like in practice.
Sources & References
IEA 2026 Energy Crisis Policy Response Tracker · GlobalPetrolPrices.com Australia Diesel Prices (6 Apr 2026) · NRMA Weekly Fuel Report (Apr 2026) · ACCC Fuel Excise Cut Monitoring (Apr 2026) · Australian Government Fuel Excise Relief Fact Sheet (1 Apr 2026) · ATO Fuel Tax Credits 2025–26 · CNN Business Fuel Surcharge Report (7 Apr 2026) · CNBC Amazon Surcharge Report (2 Apr 2026) · IBTimes Australia Fuel Crisis 2026
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