Concerned motorists have been panic-buying petrol as fuel prices have skyrocketed, but drivers are not the only ones who “should be worried”.
Fuel is needed to keep Australia running, whether it is delivering food to supermarkets, keeping fishers out on the water or transporting construction supplies to help combat Australia’s housing crisis.
Industries you may not even consider could soon start passing on increased costs to consumers — like your local removalist.
Howe Tran, director of FindaMover, told Yahoo News it’s only a matter of time before the cost of moving rises as well.
A 40c per litre spike in diesel, which has already occurred in many parts of the country, could make a Sydney to Melbourne move $420 more expensive.
If the price of diesel surges by $1 per litre, the same move would cost the resident an extra $1,000.
“Everybody’s already feeling the pinch after the last couple of years with interest rate rises,” Mr Tran said.
“So to add up to $1,000 to the average family probably sets them back quite a bit.”
How the rising cost of fuel could impact your move in the near future. Source: FindaMover.com.au
How prices reacted when Russia invaded Ukraine
After the price of oil spiked when Russia invaded Ukraine in 2022, it took just weeks for the prices of diesel-dependent industries to rise in Australia.
Costs of removalists in Brisbane spiked by 24 per cent to $149 per hour, while Melbourne saw a sharp 27 per cent increase to $145 per hour.
Sydney’s hourly rates reached $140, while Perth was the most affordable at $130 per hour.
While the high prices didn’t last, they never fully returned to pre-spike levels in any city.
Aussies urged to lock in a price now
With the crisis in the Middle East in its third week, Tran fears a similar spike is about to hit the industry.
For those planning a move within the next six weeks, Tran is urging them to get in contact with their removalist as soon as possible.
“For people moving, I think the best thing to do is to try and lock something in, get it in writing and plan accordingly,” he said.
Price rises could impact other industries
Tran said it’s likely other fuel-reliant industries could increase their charges, including freight, taxis and postage — though it depends on how long the war lasts.
He recalled the dramatic price increase the construction industry saw during Covid.
“Materials actually started finding a new price and a lot of builders went out of business because they quoted fixed prices, and they could never foresee that would have happened,” he said.
“Hopefully we’re not going to see a mass exodus in logistics.”
He said the higher price of fuel is not only hard for everyday Aussies, but also difficult for removalist companies who face fewer jobs.
“We hope that doesn’t happen. I hope that the war doesn’t play out to be a very long one and things can actually calm back down a little bit.”
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