SYDNEY, April 3, 2026, 08:25 AEDT
National Australia Bank Ltd said it had proactively contacted nearly 200,000 business customers since early March as fuel volatility rippled through agriculture, transport, manufacturing, construction and regional supply chains. The lender said most of those customers were not seeking financial difficulty assistance, though business care executive Olivia Brosca said the “real pressure is on smaller businesses” that lack buffers against volatile diesel costs. 1
That matters now. Canberra on Thursday unveiled up to A$1 billion ($693 million) in interest-free loans for critical businesses after the Middle East conflict disrupted energy supplies and pushed up costs in a country that imports more than 80% of its fuel. For NAB, Australia’s top business lender, that keeps the focus squarely on freight, fertiliser and farm customers now under strain. 2
The squeeze is already altering decisions on the farm. Reuters reported on Thursday that Australian diesel prices were up 88% since the start of the war, while urea fertiliser was around A$1,350 a tonne, up about 60%; Dennis Voznesenski, an agricultural analyst at Commonwealth Bank of Australia, said growers were moving out of “nitrogen hungry crops” such as wheat and canola into feed barley. 3
NAB is also seeing customers look for ways to cut future fuel exposure. Reuters reported on Wednesday that the bank saw a 100% uptick in EV loans in March and an 88% rise in business enquiries for EV-related lending, with business banking executive Shane Ditcham saying operators were exploring electrification to manage running costs and future-proof operations. 4
The backdrop is competitive. Reuters said in February that Commonwealth Bank of Australia and Westpac were pressing for customer growth as Australia’s big four banks fought for market share, even as NAB’s business banking volumes rose 7% in the December quarter. 5
Higher borrowing costs are adding another layer. NAB said it raised variable home-loan rates by 0.25 percentage point from March 27 after the Reserve Bank of Australia lifted the cash rate, the country’s benchmark interest rate, to 4.1% in March. 6
But a lot now turns on duration. A Reuters report on Thursday said Australia’s wheat planting could fall 10% to 12% under current conditions, while RBA minutes released on March 31 said a longer conflict could materially affect both inflation and economic activity; markets are pricing a 60% chance of another rate rise in May. 3
Jacob Mahony, chief executive of Victorian logistics company Mahonys Transport, said smaller operators across freight and agricultural supply chains were under increasing pressure even if larger businesses had, so far, managed rising costs. “Diesel is essential” to keep trucks moving and supply chains functioning, he said. 1
