As fuel prices soar to new heights, many industries are hiking prices—but Coles and Woolworths aren’t following suit, at least for now. Despite the strain on logistics, the supermarket giants have pledged to keep delivery fees steady, even as the cost of petrol and diesel rises. But can they keep it up?
Why Aren’t They Raising Prices?
You’d think that, with the cost of fuel reaching AU$2.50 per litre, supermarkets would have little choice but to raise delivery prices. After all, fuel is a major component of their supply chain. Trucks, delivery vans, and even home delivery drivers are all affected by these increases. However, both Coles and Woolworths have assured customers that, for now, they won’t be changing their delivery fees.
A spokesperson for Coles said to 9News the company was “keeping a really close eye on it,” but emphasized that no changes to delivery prices had been made. Woolworths echoed this sentiment, stating that they had no plans to increase prices at this stage. However, they did leave the door open for potential changes down the track. If fuel prices continue to rise, it could eventually force their hand.
The Bigger Picture: Rising Fuel Prices
So why the hesitation to increase prices? Well, supermarkets are trying to balance rising operational costs without losing customer trust. The price of petrol and diesel is forecast to average AU$2.02 and AU$2.50 per litre respectively, according to Westpac. This increase is largely due to global disruptions caused by the Middle East conflict, which has led to soaring oil prices. For many businesses—especially those relying on delivery trucks—this is a major headache.
The ripple effects are already being seen across other industries. Airlines, for example, have hiked airfares due to the cost of jet fuel, and rideshare company DiDi has introduced a fuel surcharge. But Coles and Woolworths are currently standing firm, hoping to keep prices stable for their customers.
What Does This Mean for Consumers?
For now, shoppers who rely on home delivery won’t feel the added financial burden of a price hike—at least not directly. However, higher fuel costs inevitably affect more than just delivery fees. Supermarket shelves may also see higher prices as suppliers pass on their increased logistics costs. As consumers, we’re likely to feel the ripple effects soon enough, even if the delivery charges stay the same.
While Coles and Woolworths aren’t raising delivery prices yet, they’ve indicated that if fuel prices continue to climb, they may have no choice but to pass some of that cost onto consumers. For now, though, they’re holding steady, hoping to weather the storm without alienating their loyal customers.
