How widespread are fuel surcharges?<\/p>\n
Almost a month into the US-led war in the Middle East, there are escalating concerns about Australia’s energy supplies as Iran restricts ships travelling through the crucial oil pipeline, the Strait of Hormuz.<\/p>\n
Fuel surcharges are becoming widespread here, with builders through to retailers reporting that they are receiving them on a range of goods and services from their suppliers.<\/p>\n
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Rideshare companies have increased prices, with Didi adding a fuel surcharge of 5 cents per kilometre (which is provided entirely to the driver).<\/p>\n
From next week, Uber will be increasing fares by an average of 6 per cent across Australia, according to a spokesperson. However, they have not specifically called it a “fuel surcharge”.<\/p>\n
“These changes build on work already underway and reflect our ongoing commitment to better supporting driver earnings over time,” the spokesperson said.<\/p>\n
“We know operating costs, including fuel, remain front of mind for many driver partners, making continued support more important than ever.”<\/p>\n
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This Melbourne store is getting fuel surcharges on everything from gluten-free bread to coconut yoghurt. (ABC News: Darryl Torpy)<\/p>\n
A wholefoods store in Melbourne’s inner north has already received fuel surcharges from several of its food suppliers, including one that supplies its gluten-free bread.<\/p>\n
“We’ve actually had a 9 per cent fuel surcharge,” Wholefoods Fitzroy’s operations manager Nick Grimshaw told ABC News.<\/p>\n
“We’ll have to charge [our customers] more.”<\/p>\n
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Nick Grimshaw says shelf prices will have to rise due to the introduction of fuel surcharges. (ABC News: Darryl Torpy)<\/p>\n
A cup of coffee or a meal out could also get more expensive soon, with the association that represents restaurants and cafes urging its 56,000 members to impose temporary fuel surcharges of up to 5 per cent.<\/p>\n
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Australia Post has applied a fuel surcharge fee to customers’ accounts. (Supplied)<\/p>\n
Even online shopping is under pressure, as freight and logistics companies that deliver parcels nationally battle the surging price of fuel.<\/p>\n
This week, Australia Post notified 30,000 of its business customers that it would significantly increase existing fuel surcharges on parcels that it delivered from late April.<\/p>\n
Wesley Blundy owns an online website that sells plus-size lingerie. He said the higher Australia Post fuel surcharge would work out to about $1 extra for every package Curvy sent.<\/p>\n
“That’s a big cost to our business that we need to solve,” he said.<\/p>\n
What could happen to inflation?<\/p>\n
Inflation was ticking up even before the outbreak of war. The overall measure is officially sitting at 3.7 per cent, with housing costs and food prices some of the biggest ongoing contributors.<\/a><\/p>\n The current data released by the Australian Bureau of Statistics does not include the impacts of surging fuel prices linked to the war. Economists warn official inflation will spike as that impact is revealed.<\/p>\n AMP has increased its inflation forecasts for 2026, predicting inflation to soar to 4.3 per cent for the March quarter, and then above 5 per cent in the June period.<\/p>\n “People are already starting to pay higher amounts right now for the increased oil prices. And I think we’re going to see a broader increase to prices in the next few weeks,” AMP’s Diana Mousina said.<\/p>\n “We’ve seen some transport companies, like the airlines as well as Uber, announce that they’re going to be increasing prices.<\/p>\n “Even if the conflict resolves itself the next few weeks, it could still take a while to play out in the market.”<\/p>\n Diana Mousina says there is now a 30 per cent chance of a recession in Australia in the next 12 months. (ABC News: John Gunn)<\/p>\n Ms Mousina is also wary about “excuse-flation”, where businesses may also use high prices as a reason to simply jack prices and engage in “price gouging”.<\/p>\n “We could just see businesses passing on costs even if they are a bit unjustified or unwarranted,” she added.<\/p>\n What will the RBA do?<\/p>\n Soaring inflation poses a problem for those doing it tough, especially when it hits essential or “non-discretionary” items like food.<\/p>\n The Reserve Bank has already raised interest rates twice this year in a bid to cool down demand in the economy. The cash rate is now sitting at 4.1 per cent.<\/p>\n The rate hike for the month of February alone added an extra $95 to monthly repayments on a $600,000 mortgage on a variable rate of 5.6 per cent.<\/a><\/p>\n Mortgage repayments calculator<\/a><\/p>\n Our mortgage repayment calculator will show you how much your loan repayments may change.<\/p>\n Many economists are tipping another rate hike in May.<\/p>\n “We can’t rule out another rate rise later down the year either,” AMP’s Ms Mousina added.<\/p>\n Another firm, Capital Economics, believes the RBA will raise the cash rate even higher than its post-pandemic peak of 4.35 per cent, going as high as 4.6 per cent this year.<\/p>\n “The RBA will respond by moving policy into restrictive territory, given the overheating economy and the risk of inflation expectations becoming unanchored,” Capital senior economist Abhijit Surya wrote this week.<\/p>\n Home building industry facing ‘COVID again’<\/a><\/p>\n From sand to concrete, suppliers are bringing in “emergency fuel levies” as petrol prices soar due to the war in the Middle East.\u00a0<\/p>\n However, the RBA has a delicate balance on its hands. If demand for goods and services slows down too much as a result of higher fuel prices and interest rates, the economy could go backwards.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/da5431ea1c2be5912b961b9980642e2e.jpeg\")
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