For Australia, the impact was immediate. With more than 90 percent of refined fuel imported, largely from Asian refineries reliant on Middle Eastern crude, the disruption has created significant supply chain bottlenecks, prompting diesel shortages and placing pressure on domestic supply.

The Federal Government convened a National Cabinet on 30 March and announced a four-step National Security Plan, including a temporary halving of the fuel excise for three months, reducing petrol prices by 26.3 cents per litre. The heavy vehicle road user charge has also been removed for the same period, alongside relaxed fuel quality standards for 60 days to allow additional supply into the domestic market.

At the same time, shipments into Australia have increased. According to Lurion De Mello of Macquarie University’s Transforming Energy Markets Research Centre, an additional 10 to 15 fuel shipments are expected to arrive through April on top of normal volumes.

Viva Energy, which supplies around 30 percent of the country’s fuel through its Geelong refinery and import terminals, said it had secured additional cargoes from the United States and South America in what it described as a “very challenging market”.

Chief executive Scott Wyatt said there was confidence in near-term supply. “We have a good flow of fuel heading into May and a good flow of crude oil heading into June for our refinery at Geelong,” he said.

Even so, industry sources note that the situation remains fluid. One distributor described it as changing “from one day to the next”, with too many variables to confidently predict how supply will stabilise, particularly given the extent of damage to global energy infrastructure.

On the water, the impact is already being felt.

Across Australia, the issue is not simply cost, but certainty. Marinas in key cruising locations are facing inconsistent deliveries, limiting their ability to guarantee supply to visiting vessels. For captains and operators, particularly those managing larger yachts, this introduces a level of operational risk that is difficult to manage.

Chris Stone, Operations Manager at the Marina Industries Association (MIA), said both marinas and the wholesalers supplying them are under pressure. “Of immediate concern is supply to facilities which home emergency services vessels for Police, Coast Guard, Customs and Port Authorities,” he said. “Many of these vessels are too small to use barge or bulk services and on busy weekends with rough weather and rescues the supply of service to marinas with these vessels is literally critical.”

At Gold Coast City Marina & Shipyard, Chief Operating Officer Andrew Chapman said the business is working to manage the situation as best it can. “We are working very hard to ensure that deliveries are available so that we can serve the needs of our customers,” he said. “We have fuel and we are open to serve as the supply allows us to. We apologise if this means from time to time we need to reduce the amount of fuel available to each customer, but just to make sure that all get the same benefit and can enjoy time on the water.”

Elsewhere, some operators are seeing more consistency. Rivergate Marina & Shipyard General Manager Andrew Cannon said deliveries have remained stable. “Deliveries have remained consistent, and we have been able to meet the needs of our customers without interruption,” he said. “In terms of pricing, our customers have generally been understanding of the need to pass on cost increases, recognising that this is an Australia-wide reality.”

At The Boat Works, vessels are ordering fuel through bunkering services, with on-site reserves used for machinery and operations, reflecting a broader shift towards contingency planning across the sector.

In some cases, operators are working together to manage supply constraints. Larger marina groups and regional facilities are sharing resources or assisting smaller operators, either directly or by connecting them with alternative suppliers. It is a practical response to a situation that, for now, remains uncertain.

From an insurance perspective, fuel security is now being treated as a material risk. Pantaenius Australia Managing Director, James MacPhail said clients are closely monitoring the situation, with some already delaying or cancelling cruising plans to the South Pacific.

Without a 100 percent guarantee of supply in the islands, powerboat and superyacht owners will not leave port,” he said. “Sailing yachts are also significantly affected.”

In the charter market, activity remains steady for now. Debbie Leenderts of Chapman Yachting said most commercial vessels operating in Sydney have not experienced interruptions. “Charter yachts specialising in day charters are still accepting bookings and running as scheduled,” she said. M/Y One World is continuing its plans to head north to the Whitsundays, with “bookings not changing at this stage”.

Internationally, demand remains strong heading into the Mediterranean season. Jeni Tidmarsh of Luxury Charter Group which deals with international clients said their bookings up on last year, although uncertainty is influencing sentiment. “Life goes on, but there’s always the worry that we don’t know what is going to happen tomorrow,” she said.

Beyond the luxury sector, disruption is filtering through the broader marine ecosystem. The cancellation of the WA Open game fishing tournament in Jurien Bay highlights the extent of the impact. When fuel availability begins to dictate whether vessels can leave the dock at all, participation across the industry is directly affected.

Regionally, the situation is becoming more complex. New Caledonia’s decision to restrict fuel supply to commercial fishing vessels only has removed a key refuelling point for private yachts transiting the South Pacific, raising concerns about routing and reliability for vessels entering the region.

At the start of the crisis, the Boating Industry Association (BIA) moved quickly to respond, engaging with the Australian Chamber of Commerce and Industry to brief the Federal Government on industry concerns.

The organisation pointed to the scale of the issue, noting that there are close to one million registered recreational boats in Australia, the majority of which rely on petrol or diesel. While cars running out of fuel on land is one issue, vessels running out of fuel on the water can quickly become a safety issue, even an emergency depending on location and conditions. In many communities, boats are essential for transport.

The BIA also highlighted the need for uninterrupted fuel supply for emergency response and essential services, including Water Police, Marine Rescue and Maritime Authority vessels, many of which rely on marina-based infrastructure around the coastline.

In that context, fuel security is no longer simply a supply issue. It underpins how the marine industry operates, from charter activity and marina networks through to safety, access and essential services, and highlights a level of vulnerability that can no longer be treated as theoretical.

Encouraging on the HVO front – which is proving a successful, though more costly substitute for marine diesel – the government aims to accelerate plans to boost domestic production of low-carbon liquid fuels, including Hydrogenated Vegetable Oil (HVO), also known as renewable diesel, and Sustainable Aviation Fuel (SAF), with a $1.1 billion investment in local infrastructure and capabilities.

The Cleaner Fuels Program aims to stimulate private investment to produce renewable diesel from Australian feedstocks (such as agricultural waste and cooking oil).

The initiative aims to have the first production of these “drop-in” cleaner fuels, which can substitute directly for traditional diesel, operating by 2029.

The funding is intended to address the current lack of commercial-scale renewable diesel production in Australia, reducing reliance on imported fuels and supporting the decarbonization of hard-to-abate sectors like construction, agriculture, and mining.

The move follows pressure from industry groups like Heavy Vehicle Industry Australia (HVIA) to enable local HVO refining, which is readily available overseas but not currently manufactured at scale in Australia.