Rising fuel prices are adding pressure to small businesses operating in Logan.
Chamber of commerce president, Arwen McGregor is warning higher petrol costs could push up expenses across deliveries, supplies and day-to-day operations.
Petrol prices across Australia have increased sharply in recent weeks, driven largely by conflict in the Middle East that has pushed global oil prices higher.
The surge has already lifted petrol prices by as much as 50 cents per litre since late February in some parts of the country.
The situation has prompted warnings from federal energy minister Chris Bowen urging motorists not to hoard petrol.
Federal treasurer Jim Chalmers said the government was monitoring fuel retailers for suspicious price increases.
Ms McGregor said sudden increases in petrol prices can quickly affect small businesses that rely on transport and deliveries.
“Any sudden or drastic fuel rises has a big impact on small businesses because of the increase in transport costs,” Ms McGregor said.
“You might have delivery companies that put their prices up because they’ve got increased costs.
“That affects supply and it can end up increasing the price of products.”
Ms McGregor said the extra costs are not always obvious to customers because suppliers sometimes include delivery increases in the price of goods.
“That might be a hidden cost that doesn’t show up as an increase in delivery fees, but a product cost might go up because their delivery costs have gone up,” she said.
Ms McGregor said businesses then face a difficult decision about whether to pass those costs on.
“It becomes a decision about whether to put your prices up and risk customers not buying the product, or absorb the cost yourself,” she said.
Ms McGregor said higher petrol prices can also affect customers’ spending.
“They’re paying extra fuel costs just to get where they’re going, so that affects what they can afford to spend.”
Ms McGregor said the impact would vary depending on how much financial buffer businesses had.
“Every business will be different. Some might absorb it for a while, others might adjust prices or reduce staff hours,” she said. “It will definitely have an effect.”
