Australians warned to expect a new surcharge as Iran crisis drags on: What you need to know
Hospitality operators will consider imposing a five per cent surcharge on customers as transport and delivery costs soar during the ongoing fuel crisis.
The Australian Restaurant and Cafe Association has urged businesses to introduce a temporary surcharge on all meals, including takeaways.
The proposed levy would see an extra $5 added to the bill for every $100 spent.
Australia’s fuel shortage is worsening with 500 service stations across Australia now out of one form of fuel.
Almost 200 petrol stations across NSW have run out of diesel, while at least 32 reported not having any fuel at all, Energy Minister Chris Bowen told parliament on Wednesday.
In Victoria, 134 are without one or more grades.
'Fuel touches everything in hospitality - every delivery, every supplier, every ingredient and every collection truck that pulls up behind a venue,' ARCA chief executive Wes Lambert told the Herald Sun.
'This is happening rapidly as petrol stations around Victoria, NSW begin to run out of diesel … what we're hearing from restaurants and cafes and some pubs around the country is they are now being hit with a fuel surcharge.
Hospitality operators will consider imposing a five per cent surcharge on customers
'If government won't stabilise costs, businesses must be allowed to survive them.'
Mr Lambert stressed that the proposed levy would only be temporary and warned that hospitality operators would otherwise shut down without 'practical relief.'
Celebrity chef Shane Delia is among the industry leaders who backed the move.
'The fact of the matter is that as an industry we absorb the bottom of the food chain all the time and we find it really hard to pass on anything,' he said.
Delia conceded that the proposal will only work unless the industry as a whole joined forces an came on board.
It comes as Aussies are warned to brace for inevitable price hikes with supply chains facing major oil disruptions as the conflict in Iran drags on.
It was no longer a question of if, but when, higher costs will flow through to consumers, supply chain management and logistics expert Elizabeth Jackson said.
'Every kilojoule of food that comes from an Australian farm is moved by a diesel-powered vehicle,' Dr Jackson told AAP.
Takeaway coffees would not be exempt from the five per cent surcharge
'Even the most basic of foods - fresh fruit and vegetables that don't go through any sort of processing - right through to the most processed exported foods, are dependent upon transport systems.
'They are also dependent upon diesel for their manufacture in terms of mechanisation that goes into food production, like tractors.'
Price rises are likely to begin with fresh produce because of its short supply chains and constant need for transport.
Increases were possible within two to three weeks with a 'slow burn' most likely rather than one sudden spike.
'The fresher the produce, the quicker we're going to see the prices increase,' Dr Jackson said.
