A recent report by 7 News has highlighted the serious threat Australia’s ongoing fuel crisis poses to grocery prices, with farmers and freight operators warning that shoppers will feel the impact within weeks.
The article outlines how the disruption to global oil flows through the Strait of Hormuz has sent fuel costs soaring, with transport companies reporting increases of up to 70 per cent. Some trucking businesses have already begun parking their vehicles, unable to absorb the rocketing costs of diesel.
National Farmers’ Federation president Hamish McIntyre warned that without reliable access to fuel and fertiliser, the flow-on effect to consumers would be severe — with costs on perishable goods such as dairy, fruit and vegetables potentially rising by 40 to 50 per cent. Dairy, frozen meals, seafood, meat, and fresh produce are among the categories expected to be hardest hit.
MGA Independent Businesses Australia CEO Martin Stirling acknowledged that while supply chain pressures have not yet fully flowed through to independent grocers, smaller retailers will ultimately have no choice but to pass on any increases in transportation or wholesale costs. Passing on price increases, he noted, is always a last resort.
Master Grocers Australia continues to monitor the situation closely and will advocate on behalf of our members as this crisis develops. We urge government to ensure that support measures reach independent retailers and the supply chains they depend on, not just the major chains.
For media enquiries, please contact:
Kath Markov, Marketing & Partnerships Manager
kath.markov@mgaiba.org.au
0452 660 506
