Melbourne, April 1, 2026, 08:36 AEDT
National Australia Bank Limited said Wednesday it has reached out to nearly 200,000 business clients since early March, aiming to assess the impact of fuel-price swings—especially across agriculture, transport, manufacturing, construction, and regional supply chains. The bank noted that most customers are handling the situation themselves, with few requesting hardship assistance.
Australia is moving to cushion the impact of a fuel price spike linked to the Iran war. This week, Canberra announced it would cut fuel excise by half and pause the heavy road-user charge—applied to trucks—for three months, following Brent crude’s 59% jump in March and Australian diesel averaging over A$3 a litre last week.
NAB, the country’s biggest business lender, finds itself navigating tricky timing. On Tuesday, the Reserve Bank of Australia hinted that calling the rate path is unusually difficult. Back in March, the central bank raised the cash rate by 25 basis points, taking it to 4.1%. For May, markets are pricing in a 60% chance the RBA hikes again.
Household strain isn’t just theoretical. NAB’s Consumer Stress Index, which tracks cost-of-living pressures, climbed to 59.1 for the March quarter, hitting a level last seen in 2014. Over the past year, 57% of Australians reported switching at least one provider as they grappled with rising prices.
“Households are clearly under strain, but what’s striking is how proactive people are being,” said Dean Pearson, NAB’s head of behavioural and industry economics. Families aren’t just cutting out purchases altogether; instead, Pearson noted, they’re downgrading choices and hunting for better deals. Plans for big-ticket buys—appliances, renovations, holidays—have all taken a hit. NAB News
Olivia Brosca, business care executive at NAB, noted that under 2% of recent calls fielded by the bank’s business care team dealt with fuel price pressures. She pointed to a sharper vulnerability among small businesses lacking reserves or storage: “The real pressure is on smaller businesses who haven’t been able to build that buffer.” NAB News
Jacob Mahony, who heads Victorian logistics firm Mahonys Transport, pointed out that diesel is still a huge expense, squeezing smaller freight outfits and the agricultural sector’s supply chains. “Diesel is essential to keeping trucks moving and supply chains functioning,” he said. NAB News
NAB moved quickly, raising variable home-loan rates by 25 basis points from March 27 after the RBA’s March hike. Commonwealth Bank and ANZ matched the increase on the same day. Westpac’s rate bump landed a few days later, on March 31. That put all four major banks under the same pressure.
Ana Marinkovic, who heads up personal banking at NAB, called the prospect of another rate hike “challenging for many Australians” amid ongoing cost-of-living strains. Over at CBA, Angus Sullivan echoed that concern, while Westpac’s Carolyn McCann and ANZ’s Pedro Rodeia all pressed customers to reach out sooner rather than later if they’re struggling with repayments. NAB News
The outlook could shift quickly. RBA minutes indicated policymakers saw inflation hitting roughly 5% for the June quarter, assuming oil sticks near $100 a barrel. On Tuesday, a Reuters poll found analysts now expect Brent prices in 2026 to be 30% higher than what they predicted back in February. That scenario puts extra strain on smaller players if fuel prices remain elevated and rates climb again.
NAB posted cash earnings of A$2.02 billion for the first quarter in February, a 16% jump over the same period last year, as business banking volumes climbed 7%. The new quarter opens with business clients largely hanging on, though households are feeling more pressure, and fuel expenses continue to tick up.
