CPA Australia has warned that rising fuel prices and the latest interest rate increase are creating fresh pressure for households and small businesses, particularly those dependent on transport and mobility.
The accounting body said the combined effect of fuel costs, persistent inflation across essential goods and weaker consumer confidence is creating a tougher operating environment across multiple sectors, with transport, trades, logistics, agriculture and regional businesses among those most exposed.
Fuel-heavy sectors feel immediate impact
Gavan Ord, Business Investment Lead at CPA Australia, said businesses reliant on fuel are already seeing costs flow directly through their operations.
“These businesses are feeling bruised by higher fuel costs that are flowing through every part of their operations,” Ord said.
“Fuel isn’t optional – it’s fundamental – and when prices spike, costs rise immediately with very little room to hide.
“For many small businesses, fuel is now one of their largest and most volatile expenses. Combined with higher interest rates and persistent inflation, it’s making an already difficult situation worse.”
Ord said the latest increase comes at a time when economic sentiment remains fragile.
“Households are pulling back, businesses are losing confidence, and yet costs keep rising,” he said.
“This rate increase adds fresh pressure just as many were hoping for some relief.”
Image: Gavan Ord
Cost pressures expected to reach consumers
CPA Australia said many businesses may soon have little choice but to pass costs through to customers as margins tighten further.
“Borrowers who might have believed last month’s rate rise was a one off will be deeply disappointed – at the same time as fuel, food and energy bills continue to climb,” Ord said.
For businesses operating across transport and service delivery, the pressure is being felt daily.
“Every trip, delivery and service call now costs more,” he said.
“Businesses can’t absorb these increases indefinitely, and many are running out of options.”
CPA Australia said consumers should expect broader flow-on effects if current cost trends continue.
“When costs rise this sharply and this quickly, prices at the checkout inevitably follow,” Ord said.
“Many small businesses will be forced to pass on higher costs, while others will delay investment, reduce services or scale back employment.”
Calls for long-term reform
The organisation said the current environment reinforces the need for broader structural reform to support business resilience.
“Short-term relief won’t fix a system where small businesses are burdened by high costs, excessive red tape and uncertainty,” Ord said.
“What is needed is decisive action to cut unnecessary regulation, lift productivity and restore confidence.”
Ord also urged businesses and households facing financial strain to seek advice early.
“In conditions like this, early decisions can make a positive difference,” he said.
“Accountants help businesses manage cash flow, plan for volatility and navigate heightened financial risk.”