Tuesday, 21 May 2024
    Rising cost of diesel impacting regional businesses and customers

    Rising cost of diesel impacting regional businesses and customers

    If you’ve noticed you're paying a higher price for your fresh-cut flowers, the reason for this is likely that the national average price for diesel is at an eight-month high, and the costs are being passed along the supply chain. 

    Freight companies are passing on the charges to local businesses and are concerned that prices are going to increase even further. "We can't absorb that kind of hit," said transporter Gerard Johnson. “There would be a flow-on effect across the supply chain.” 

    Florist Rhiannon Matthews explains that her business' flowers have "travelled at least 1,200 kilometres by road. So we might have to pay three lots of freight charges before we can pass it on." 

    By looking at the stats, we can see just how much the price has jumped. The Australian Institute of Petroleum's August report shows the national average price for diesel is at 212.6 cents a litre, an increase of 5.7 from the previous week. 

    Taking into account the rental prices, electricity, and the cost of the flowers that are also impacting Matthews’ business, she said, “Everything is so tight now, and people are being so careful, which we have to do." 

    This kind of surcharge will have ripple effects across the business, Matthews goes on to say, "One surcharge in one area affects so much more because it's not just our flowers; it's our clothing, it's our food." 

    When regional businesses are struggling to absorb the rising costs, customers will have to put up with it and pay up for it. 

    That’s why we work closely with members to secure the best possible pricing on goods and services across dozens of categories and products. With transparent pricing and the power of aggregation, members can celebrate alleviated cost pressures, and so can the customers who rely on them.  

    Source: https://www.abc.net.au/news/2023-08-30/rising-diesel-costs-affect-transport-supply-chain-regional/102777254