CPO Crunch: Oil and trouble as Pacific fuel supplies tighten - Procurement Leaders

CPO Crunch: Oil and trouble as Pacific fuel supplies tighten By David Rae 20 April 2026 As leaders in Australia and New Zealand manage the risk of fuel shortages, there are lessons for CPOs elsewhere The power of a global community like Procurement Leaders is the direct access it provides to the thoughts, concerns and ideas of executives across every industry and region. It’s an unparalleled barometer of the function and a global ecosystem from which clear signals can emerge amid the noise before they appear anywhere else. Sometimes our conversations provide therapy, at others they offer immediate decision support or spark strategic inspiration. The beauty is that at any point in time, someone in the community will be dealing with something that others will soon be confronted by. After all, there’s no such thing as an original idea – or an original challenge. A good example came last week, when we convened the CPO community in Australia and New Zealand to discuss the energy crisis that has embroiled the region since the start of the Gulf conflict. The two countries are the only ones that fall short of the International Energy Authority’s mandate for net importers of oil to maintain 90 days of oil reserves, which has led to serious fuel supply crunches and huge price hikes over the past few weeks. In a rare primetime television address to the nation in early April,  Australian prime minister Anthony Albanese warned of difficult times ahead , and how the economic impact of the war will be with the country for months. He asked citizens to adapt their behaviour. Similarly, on our call, CPOs described sharp increases in the price of fuel and petrochemicals. These are cascading into increased costs of transport, chemicals and critical construction, healthcare and mining inputs. At the same time, they have serious concerns about liquidity, supplier insolvency and the longer‑term economic effects. As a consequence, they are adapting behaviours, with a shift to short-term price indexing (often monthly) to address supply liquidity issues while ensuring prices can also flex down when appropriate. Contract variations are also being rejected to prevent longer-term increases being baked in. In the longer term, they are scenario planning over multiple time horizons and contemplating more foundational shifts to their supply chains. So, while CPOs everywhere will be in crisis-management mode and rolling out strategies to help them get through the coming weeks and months, the acuteness of the situation in Australia and New Zealand means there are many lessons to be learned. Image: ChameleonsEye / Shutterstock.com To receive weekly insights from the Procurement Leaders community, sign up to the  CPO Crunch  newsletter using the link at the top of this page . The CPO Crunch Inspiring CPO community insights – straight from the source into your inbox. Subscribe to your CPO newsletter: Thanks for subscribing to the CPO Crunch newsletter. Keep an eye on your inbox for your first one. More insights Being a CPO: Probably the best job in the world READ MORE Research – Beyond centre-led: The future of procurement operating models READ MORE World Procurement Congress 2024: We’re only just getting started READ MORE Thought leader: How to get early supplier involvement right READ MORE Procurement – much more than a job READ MORE CPO Crunch: The procurement culture club READ MORE New research: supply chain transparency – enabling insights into the invisible READ MORE CPO Crunch: A rewarding time READ MORE CPO Crunch: Hydrogen making its mark READ MORE CPO Crunch: Looking back on the ‘year of AI’ READ MORE 2024 planning: Supporting growth by expanding strategic procurement and optimising operating models READ MORE Research: Purpose-driven procurement: Entering an age of holistic value READ MORE Research: High-velocity procurement READ MORE Can brands save profits without squeezing suppliers? READ MORE Next generation category management READ MORE CPO Crunch: Cause for (cautious) optimism READ MORE CPO Crunch: Building for the next crisis READ MORE CPO Crunch: Putting procurement at the heart of rapid investment READ MORE CPO Crunch: Communication key to cyber response READ MORE