SYDNEY, April 3, 2026, 08:25 AEDT
National Australia Bank Ltd has reached out to almost 200,000 business clients since early March, as wild swings in fuel prices hit agriculture, transport, manufacturing, construction, and regional supply networks. The bank noted that most of these customers haven’t come forward for financial hardship support, but business care executive Olivia Brosca flagged that “real pressure is on smaller businesses” with less cushion against surging diesel costs. NAB News
This comes into sharp relief now. On Thursday, Canberra rolled out as much as A$1 billion ($693 million) in interest-free loans targeting critical businesses, following energy supply disruptions from the Middle East conflict that have driven up costs across Australia, a country reliant on imports for over 80% of its fuel. For NAB—Australia’s biggest business lender—the move centers attention on customers in freight, fertiliser, and farming, sectors feeling the squeeze.
Farmers are already making changes. Reuters said Thursday that diesel in Australia has surged 88% since the war began, and urea fertiliser sits close to A$1,350 a tonne, up about 60%. Dennis Voznesenski, agricultural analyst at Commonwealth Bank of Australia, noted that growers are shifting away from “nitrogen hungry crops” like wheat and canola, turning instead to feed barley. Reuters
NAB is spotting more customers trying to limit their future fuel costs. The bank logged a 100% jump in EV loans in March, Reuters said on Wednesday, alongside an 88% surge in business queries tied to EV lending. Business banking executive Shane Ditcham noted operators are weighing electrification strategies to curb operating costs and protect their businesses down the line.
It’s a fierce environment. Back in February, Reuters reported that Commonwealth Bank of Australia and Westpac had been chasing customer gains while the country’s big four banks continued to jostle for share. NAB managed to lift its business banking volumes by 7% for the December quarter.
Higher borrowing costs are coming into play. NAB bumped up its variable home-loan rates by 0.25 percentage point effective March 27, after the Reserve Bank of Australia pushed its cash rate—the national benchmark—up to 4.1% this March.
But duration is now the key variable. According to a Reuters report Thursday, wheat planting in Australia may drop by 10% to 12% if current conditions persist. The RBA minutes from March 31 flagged that a prolonged conflict could have a substantial impact on both inflation and the broader economy. Markets are currently assigning a 60% probability to another rate hike in May.
Jacob Mahony, who runs Victorian logistics firm Mahonys Transport, pointed out that rising costs are squeezing smaller freight and agricultural operators, even though bigger players have kept up—at least for now. “Diesel is essential” to keep trucks on the road and supply chains running, he said. NAB News
