Why millions of Aussie families are being pushed closer to ‘breaking point’ – as fuel shortages threaten to send supermarket costs soaring
Soaring fuel prices could push millions of Aussie families to ‘breaking point’, with the weekly shop set to become even more expensive.
The US-Israel-led war on Iran, now in its fourth week, has seen fuel prices skyrocket as Iran continues to block oil supplies, with Australian farmers warning costs could flow through to shoppers within weeks.
CEO of food waste app Saveful, Kim McDonnell, said she expects fruit, vegetables and dairy products to be among the first grocery items to see prices surge.
‘Farmers are estimating grocery prices to go up another 16 per cent in the next month or so, which is staggering, and will be the tipping point for a lot of families,’ Ms McDonnell told the Daily Mail on Wednesday.
‘[Families] are already struggling with the rising cost of living crisis and increasing mortgage rates, and now rising grocery costs… it really is just going to be a critical breaking point for so many.’
Ms McDonnell said families will be forced to make some ‘heartbreaking’ compromises at the checkout, especially if supermarkets start to introduce temporary limits on goods to curb panic buying, as seen during the Covid pandemic.
‘Families are already making difficult decisions about nutrition and trying to balance healthy choices versus budgets,’ she said.
‘We’ve seen people start hoarding fuel when the war first broke out… I think people are very conscious when they go into supermarkets now and already see that the shelves aren’t as full as they used to be.
CEO of food waste app Saveful, Kim McDonnell, said she expects to see many families forced to make some ‘heartbreaking’ compromises at the checkout
Fruit, vegetables and dairy products could be among the first groceries to go up in price (pictured, empty shelves during the Covid pandemic in Sydney in 2022)
‘So frozen is always a good option, if you have to choose between fresh and frozen.’
For those who want to save cash at the checkout, Ms McDonnell said shoppers should plan their shopping list, take note of estimated shelf-life dates, and ensure they are storing food properly at home to make it last longer.
She also encouraged households to batch cook and meal plan for the week ahead.
‘None of us buy food with the intention of wasting it. Food is such a precious commodity. None of us can afford to waste it,’ she added.
The warning comes days after Australia’s peak farming body warned winter food production could be halved if there isn’t enough urea (which is used as fertiliser) transported to farms in time to secure the winter crop.
‘Diesel drives food production across Australia, so we need to make sure it’s available for our essential services, number one, but then our farmers and food producers after that,’ National Farmers’ Federation president Hamish McIntyre told ABC Radio.
‘If we can’t get our in-crop requirements after May, the winter crop in Australia could be halved.’
Meanwhile, corporate giants using subcontracted delivery drivers will front the Fair Work Commission on Wednesday as part of a union bid to force them to cover surging fuel costs caused by the conflict in the Middle East.
Australia’s peak farming body warned winter food production could be halved if there isn’t enough fertilser is transported to farms in time to secure the winter crop
The fuel crisis is threatening to choke supply chains and disrupt deliveries nationwide (pictured, empty fuel pumps at a service station in Melbourne)
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How should Aussie families cope with soaring grocery prices as farmers and transport costs hit breaking point?
The Transport Workers Union and the Australian Road Transport Industrial Organisation have made a joint application for gig workers, owner-drivers and transport businesses to be able to pass surging fuel bills back on to major corporate clients like Coles, Woolworths, Aldi, McDonald’s and Amazon.
Woolworths has already lifted the levy drivers can charge food and grocery manufacturers for transporting their goods to distribution centres. It has also changed its fuel levy reviews from monthly to fortnightly.
Coles will review its fuel levy for truck drivers every fortnight.
Rideshare giant DiDi has introduced a 5c per kilometre increase which will go directly to drivers. Uber said it was overhauling its fee structure so it could pay its drivers more, amounting to an average earnings increase of six per cent nationwide.
On Monday, Workplace Relations Minister Amanda Rishworth announced the Fair Work Act will be changed to fast‑track applications by unions and transport operators seeking ’emergency’ supply‑chain orders from the FWC, allowing rates to be lifted in line with soaring fuel costs linked to the conflict in the Middle East.
The amendments will scrap the current six‑month waiting period, enabling the tribunal to issue orders compelling transport clients to offer fair contract terms.
