Australians have been warned to brace for ‘Armageddon’ at the supermarkets, with prices set to soar and shelves to be stripped bare as soon as mid-April.
The nation’s escalating fuel crisis is threatening to choke supply chains and disrupt deliveries nationwide as the Middle East crisis drags on.
Transport operators have warned the situation is deteriorating rapidly, with some revealing fuel bills have skyrocketed by as much as 70 per cent.
Queensland truckie David told 4BC breakfast hosts Dean and Sofie the rise in expenses would have a domino effect that would hurt everyday Aussies.
‘It usually takes me $950 to fill up. My fill-up last week each day was $1,550 – a jump of $500-$600,’ he said on Monday.
‘The profit margins in trucks are not that great. They’ve got to pay me overtime, double time, triple time, living away allowances and tolls – it’s all adding up.
‘It’s all going to come to one place and that’s the consumer.
‘We deliver eggs, milk, bread, meat, and vegetables. They all have to go up. Prepare yourself for Armageddon, because if this keeps going, it has to go into the shops. There’s no other place it can go.’
The nation’s escalating fuel crisis is threatening to choke supply chains and disrupt deliveries nationwide as the Middle East crisis drags on (stock image)
National Road Transport Association chief Warren Clark said the situation has become so concerning some businesses that own their trucks outright are choosing to pull vehicles off the road, opting to wait out the crisis rather than operate at a loss.
He said consumers could start to see the effects as early as mid to late April, with noticeable price hikes on everyday essentials or empty shelves altogether.
‘The cost of fuel has to be worn by the end customer or people can’t actually operate in business,’ he said.
‘Some of our members are telling us they simply cannot keep going.
‘We are seeing long-term operators parking their trucks and walking away from businesses they’ve spent years building.
‘We are expecting to see more businesses make tough decisions on April 21, when the fuel card bills for March start landing.
‘That will be the moment many operators realise they simply can’t absorb these costs any longer.’
Mr Clark said the consequences of government inaction would extend far beyond the transport sector, flowing directly through to higher prices for groceries, fuel and essential goods
National Farmers’ Federation president Hamish McIntyre said dairy products will be among the first to see prices skyrocket, followed by fresh produce (pictured, empty shelves in Sydney in 2022)
Warren Clark (pictured) said rising fuel costs and the impact on Australia’s supply chains would soon be felt by consumers, likely from mid to late April
‘When trucking businesses collapse, supply chains suffer, and Australian households pay the price,’ he said.
With the closure of the Strait of Hormuz interrupting crucial shipments of fertiliser from the Middle East, farmers are also bracing for impact.
National Farmers’ Federation president Hamish McIntyre said dairy products would be among the first to see prices skyrocket, followed by fresh produce.
‘We estimate in a matter of weeks we’ll start to see the costs flow through to the consumers on supermarket shelves,’ he said.
‘It starts with dairy, then our fruit and veg, and in any of our intensive animal industries too.’
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 Middle East conflict.
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 to their major corporate clients.
These clients include Coles, Woolworths, Aldi, McDonald’s, Amazon and Dan Murphy’s owner Endeavour.
Transport operators have warned the situation is deteriorating rapidly, with some revealing fuel bills have skyrocketed as much as 70 per cent (pictured, drivers queue at a Melbourne petrol station)
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 5¢ 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 earnings increase of 6 per cent on average 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 driven by the Middle East war.
The amendments will scrap the current six‑month waiting period, enabling the tribunal to issue orders compelling transport clients to offer fair contract terms far more quickly.
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.