‘We’re cautiously travelling now … but all bets are off if fuel hits $3 per litre!’

Published: March 20, 2026

While it is not yet clear just how big of an impact surging fuel prices will have on travel plans this year, one thing is obvious … the longer the crisis lasts the worst things will get.

Research by the largest holiday group in New South Wales, Reflections Holidays, shows that, if the price of fuel tips $3 per litre, Australian travellers will consider changing their plans.

Almost two thirds said they would instead choose to holiday closer to home.

A survey conducted by Reflections on March 18 of almost 9,000 of its members showed that less than 5% were currently looking to delay their plans due to the current fuel situation.

Fuel prices

However, the survey also found that if the fuel price shifts past $3 a litre, travellers will look to change their plans, with 62% saying they would change their booking to a destination closer to home or, if road tripping, reduce the number of destinations.

Comments from respondents in the survey included about their holiday sentiment included, “the only thing we might change is that we might holiday closer to home”, “We are now planning shorter breaks and less destinations”, “I’m travelling around Australia and staying longer in places to spread out the cost”, and “We are trying to reduce our fuel use to let farmers and others who need it have priority”.

fuel gauge

Will the fuel crisis eventually leave the drive tourism industry running on empty? PIC: Srattha Nualsate / Pexels

Reflections, which operates 40 holiday parks in New South Wales, is clearly concerned about the potential impact that travellers cancelling trips could have, and has announced it is offering its guests a $25 credit at all of its holiday parks.

The Fuel Offset Program will be applied from now until April 30, with each Reflections guest receiving the $25 in their account in the first week of May. The Program is subject to standard terms and conditions, with a limit applied to one credit per booking guest in this period.

Reflections Chief Executive Officer Nick Baker said that the holiday group was well aware that Australians were concerned by the leap in fuel prices, and cost of living, and wanted to make a difference.

“We are happy to offer this fuel offset voucher to any of our guests who are staying for two nights or more at any of our parks, starting from today until April 30, and this applies to those guests who already have bookings or are considering booking in this period,” Mr Baker said.

“We hope this credit brings some peace of mind to our guests who have already booked over Easter or are weighing up whether to travel in April, because we know that they – like all of our team – are concerned by the rise in the cost of fuel, alongside general costs in living.”

Mr Baker said that the Fuel Offset Voucher program was a first for the organisation.

“We are witnessing unique global circumstances which have impacted the travel plans of Australians, and this requires a unique approach from us as an industry leader,” he said.

  • What would you like to see tourism-dependent towns and businesses do to encourage you to keep travelling? Comment below.

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Tony Lee
26 days ago

I don’t care what the price gets to because all I do is plan 2000km trips instead of 10000km ones, drive less each day on average and stay longer in each camp (which for us are mostly free camps alongside a river or lake)

Shane
26 days ago

I have just started my Lap of Australia for a second time as I had started last time just as Covid started and they started closing the borders. I had to jump back to my home state. This time I am nearly 1/4 into my trip and if petrol (91) goes beyond $3 then I will have to make a hard decision as I have budgeted everything nearly to the dollar for the trip and that would basically nearly double what I had for fuel. I have already slowed down substantially to try and see what happens before I get too far away from home. Currently I am 2 states away from home in NSW.

Mari Linn
25 days ago
Reply to  Shane

It’s already $3 and over in Sydney and the central coast.

Annie
26 days ago

80klms per hour has become our friend. Our vehicle is already very fuel efficient but we’re determined now to not use any more than we absolutely have to!

Joe
26 days ago
Reply to  Annie

80 is fine so long as you constantly pull over to let other traffic go, not just hold everyone up or traffic accidents will sky-rocket.

Tony
26 days ago

*****News flash****
Diesel has already hit $3:00 /litre and gone beyond.
It jumped from $2:85 to $3:20/l in Cooma NSW overnight (20/3/26)

Markev
26 days ago

Caravan parks along the cost in Qld are asking for full site payment a month in advance with a declared policy of no refunds over our winter stay for 8-12 weeks in two parks. Given the fuel circumstances, it’s terribly difficult to know if fuel will be available and at what cost a month ahead of each bookings. Travelling from Victoria means fuel is a significant cost, even in a normal year. Hopefully the various caravan park chains will be reasonable and either reduce their payment timeline or offer a refund if needed. They accommodated unusual circumstances during COVID times and this would justify flexibility again: although our loyalty in the past decade doesn’t count for much nowadays.

Robert
26 days ago

Fuel in Port headland WA is just below $3, right now, and is going up 16c a litre tomorrow, so will be well over the magic $3 and if demand remains high, we will see $3.50 for 91 and just under $4 a litre for diesel and 98 fuels by end of April.

Tony Bicknell
26 days ago

Friday night news finally revealed that 80% of the fuel refined in Singapore is sourced from the Middle East and accounts for most of Australia’s imported fuel. Why didn’t this idiot government tell us weeks ago??

Tony Bicknell
26 days ago

It’s only revealed yesterday that Australia’s 90 % of imported fuel from Singapore is 80% sourced from the Middle East! Only 20% of world fuel passes the straits of Hormuz but what is the federal government doing to guarantee Australian supply?

Robert Smpson
26 days ago

We are luk we are at HOME NOW & have made the decision to just sit it out at home, & only use the Car as & if necessary, and if (as Like, Traveling into Wollongong ) on Monday 23/03/2026 ) for my Appointment with my Oncologist [ a return distance of 25klm it will be a SLOW TRIP keeping speed down to90 kph on / FREEWAY this then increases my Fule usage per 100 K form 10 / Litres / Hundred to only 8 Litres / Hundred .

Max O
25 days ago

The fact that the fuel companies started ripping us off from the first news is a disgrace, the fact that the ACCC knew all about it from the start says a lot about all the successive governments that have told the ACCC not to interfere with the fuel prices, this was confirmed on the media a few days ago. The excise(TAX) plus the GST on top of the rip off prices has cause the panic buying from the start. If prices were kept the same the public would not have started to panic and there would be plenty to last for a longer period. The servo I always got my fuel from was mostly cheaper than the others but the day it was mentioned the prices went up to be the highest in the region, guess I wont be using that mob again because of the immoral practice, The ACCC said we can only act when there is collusion but we need evidence, look at the way prices went up and by how much it was obvious it was collusion.

John Kellow
25 days ago

when I was towing with a 4 speed Falcon I found that towing in third gear was most economical. To test this drive with van at about 90 kin 3rd gear then change to 4th gear and note that it takes a lot more gas to maintain speed . This woud probably apply to other vehicles with a top gear overdrive

Rob Jones
20 days ago
Reply to  John Kellow

in my 200 series I only tow in sequential and it never goes higher than 4th.

Colin T
25 days ago

We are putting our trip to Townsville on hold for the time being.
The uncertainty of diesel availability in towns on the way is unnerving. Besides that, I would not like to think I have taken diesel out of a small town, which possibly could run them low or possibly contribute to them running out. Farmers depend on this diesel for their lively hood, so I don’t mind putting my plans on hold for now, as after all it is only a get away for us to the warmer weather.

Brenton
25 days ago

We have booked the Spirit of Tasmania in early May along with B&Bs and hotels, mostly on the West Coast. This was all done before this war started, our dilemma is will there be diesel available even if rations apply we are concerned if we will get caught out. Then there is the cost now as I’ve done the trip before and we spent close to $600 in diesel but you could triple it now.

GeeGee
24 days ago
Reply to  Brenton

I’m in the same situation and heard we have enough diesel until mid-April plus, 6 oil ships have now been cancelled. I’m booked on at end of April and wonder if Spirit of Tasmania have diesel to travel across to Davenport, or will I get stuck in Geelong, for months or years.

Rob Jones
20 days ago

If you’ve only got a few years left in your tank then another few thousand in fuel and you can afford it, go for it. You’re a long time dead. The kids will spend it. Before the war I was paying $1.80 for diesel in Busselton. My vehicle gets around 5km/l. 30,000@5km/l =6000 litres x $ 1.80 = $10,800.
6000 @ $3 = $18,000. 6000@ $3.60 = $21,600 ,6000 @ 4 = $24000. We have 2018 200 series and tow a 21.6 Jayco Silverline. I drive at around 95km/h. It doesn’t drive the truckies mad because I travel on CH 40 and talk the trucks around. Some of them anyway; those from the sub continent don’t talk to us Aussies. Those figures I quoted are how I budgeted in 2023-2024 when we went Busselton – Cooktown – Busselton. We didn’t do 30,000 kms but you get the picture.

DAVE
12 days ago

I believe it is high time goverments woke up to the fact that we are an island. WE have massive amounts of oil in the ground and under the sea. So lets build a refinery in each state and produce our own fuel, then we would not have to really on Singapore. Im not sure , but I believe it was stated in 1978 to store fuel in Australia, but consistant goverments have done nothing, which is why we have a problem today. I won’t to head to the east coast next month and its looking like it will cost me $700 more this trip and maybe no fuel avaliable, fair enough ill wait. As long as the farmers are looked after.

Gerrit
12 days ago
Reply to  DAVE

Under both sides of government refineries have shut down. When I migrated to Aus there were 8 refineries. Go figure. Instead of bringing those up to speed they took the easy way and let them close down. We are living with the consequenses now. No use fingerpointing to the current government both had a hand in it

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