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⚠️ PVC pipes up 36% from 17 April. Diesel at $3.25/L nationally. Scroll down for your action plan.
Supply Chain Crisis — Australia Wide

Your costsjust went up.Here's the fix.

The Strait of Hormuz is closed. Fuel is scarce. Material prices are skyrocketing. Here's exactly what every trade business owner in Australia needs to do right now to stay profitable.

Published 7 April 2026
By Tradewise Group
⏱ 4 min read
📍 Australia-wide
What Happened

The short version

💥
US & Israel strike Iran
28 Feb 2026
→
🚢
Strait of Hormuz closed to shipping
→
⛽
80% of Aus fuel supply disrupted
→
📦
Material costs surge 10–36%
→
💸
Your job margins take the hit
Fuel & Reserves
Australia's Fuel Reality

How empty is the tank?

🛻 Diesel reserves
30
days of supply left
IEA target: 90 days
⛽ Petrol reserves
24
days of supply left
IEA target: 90 days
💰 Diesel price/litre
$3.25
national average
Was ~$2.10 pre-crisis
Temporary relief: The fuel excise was halved from 52.6¢ to 26.3¢ per litre from 1 April. It expires in June — after that, pump prices could spike again. Plan for it now.
Material Prices
Material Price Increases

What's going up & by how much

Confirmed or in effect as at April 2026. Sorted by impact.

🔵
Polyethylene (PE) pipe
+36%
Plumbers · Civil
Critical
🚧
HDPE drainage pipe
+36%
Civil · Plumbers
Critical
🔶
Polypropylene (PP) fittings
+31%
Plumbers
Critical
⛽
Diesel (plant & transport)
+55%
All trades
Critical
🪠
PVC pipes & fittings
+27%
Plumbers · Builders
High
🧱
Foam insulation
+22%
Builders · HVAC
High
🛣️
Bitumen / asphalt
+20%
Civil
High
🔌
Copper wire & cable
+16%
Sparkies · Plumbers · HVAC
High
🎨
Paints & solvent coatings
+15%
Painters
Medium
🏗️
Concrete & cement
+12%
Builders · Civil
Medium
🚚
Freight / delivery surcharges
+10%
All trades
Medium
🏠
Steel reinforcement
+8%
Builders · Civil
Medium
Source: Altus Group Q1 2026, Iplex supplier notices, Housing Industry Association, Australian Bureau of Statistics.
Hidden Risk
📋
Your old quotes are costing you money right now
Any quote sent more than 3 weeks ago is now underpriced. Major Tier 1 contractors have cut their quote validity to just 15 days. Still running 30–90 day fixed prices? Every material price rise between signing and buying is coming out of your pocket.
Your Numbers
Know Your Exposure

Calculate your real hit

Job cost impact calculator
Plug in your numbers — see your actual exposure in seconds.
0%PVC/PE pipes: 27–36%40%
0%Diesel up ~55% from pre-crisis70%
What To Do
Your Action Plan

What to do & when

In order of urgency. Just work through the list.

1
🔴 Do this today
Fix your quotes — right now
  • Shorten all quote validity to 7–14 days maximum
  • Call back any open quotes older than 3 weeks — reprice them
  • Add to every new quote: "Prices valid 14 days. Materials subject to supplier adjustment."
  • Ring your 2–3 main suppliers — get current price lists in writing
2
🔴 Do this today
Recalculate your diesel cost per job
  • Diesel is $3.25/L+ — your fuel line is almost certainly undercosted
  • Update your quoting template with the real number
  • Add a visible "Fuel & freight levy" line to all new quotes
3
🟠 This week
Pre-order materials for confirmed jobs
  • Signed contract in hand? Buy the materials today at today's prices
  • PVC, copper and PE pipes especially — next price move hits 17 April
  • Holding stock for 2–3 weeks beats paying 28–36% more next month
4
🟠 This week
Tighten up your cash flow
  • Move to 30–40% upfront deposits on all new jobs — you need cash to pre-buy materials
  • Chase outstanding invoices — tighten debtors to 7 days
  • Review your 5 largest active jobs — still profitable at current material costs?
5
🟠 This month
Talk to your clients early — don't go quiet
  • Clients have seen the news — most will understand a straight conversation
  • Email or call before a quote expires — explain the market, offer an update
  • Tradies who communicate early maintain trust. Tradies who absorb costs quietly until they can't are the next insolvency statistic
6
🟠 This month
Find substitute materials now
  • Talk to suppliers about alternatives before shortages force your hand
  • Consider pooling orders with another local tradie for better pricing and priority access
7
⚫ Next 90 days
Shift larger jobs to cost-plus pricing
  • Fixed-price lump sum is too risky for jobs over $30K right now
  • Move to cost-plus with an agreed margin — explain this is now industry standard
  • Build a 15–20% materials contingency into all new job cost templates
8
⚫ Next 90 days
Plan for the June cliff
  • The fuel excise cut expires in June — prices could spike again
  • Any job starting after June needs an escalation clause and a fuel buffer baked in
  • Watch the RBA — rising inflation could lift interest rates, slowing client demand
Track Your Progress
Your Checklist

Tick 'em off as you go

0 of 12 actions completed — get cracking!
🔴 This week — urgent
🟠 This month
⚫ Next 90 days
The Numbers
36%
PE pipe hike from 17 Apr
30
days diesel left nationally
$3.25
diesel per litre nationally
15
days max quote validity, big builders
3,596
building insolvencies in 2025
Free Download

Free Resource — Tradewise Group

Supply Chain Action Kit 2026

Price tracker by trade · Quote clause wording · Job cost calculator · 12-point checklist · June cliff guide

📥 Download Free →
The tradies who come through this will be the ones who repriced fast, communicated early, and protected their cash flow. The ones who absorb costs silently and hope it blows over are the next insolvency statistic. Take action today.
Need help managing your margins, quoting, or cash flow? Tradewise Group embeds a team of business specialists into your trade business — finance, HR, systems, and growth. Book a free Strategy Call →