Rising Fuel Prices Impacting Supply Chains
It’s no secret that fuel prices are causing frustrations at both home and abroad. This week everyday Australians are paying between $2 and $3 a litre for petrol. And with the high price of diesel, the pump is not the only pain point to be felt by consumers over the coming months.
Supply chains have been stressed over the last two to three years due to the global pandemic and increased demand, and with Russia’s invasion of Ukraine adding to already inflating crude oil prices, increased transport costs will, if not already, be passed on to consumers.
Commercial truckers have already felt the strain of rising fuel prices and have had to increase transport costs accordingly. Coupled with a limited supply of drivers and the recent floods affecting typical routes. The Transport Workers Union (TWU) have written to Prime Minister Scott Morrison urging for urgent action to this burden of transport businesses.
These increases will be felt throughout the supply chain with a flow on effect to consumers, from the grocery store to Uber trips. This trend is expected to persist over the next few months.