- Both the Bureau of Labor Statistics and the Economic Research Service track food price trends and inflation.
- ONS figures show a rise in grocery costs, prompting discussion on food manufacturer pricing and input costs.
Woolworths raises fuel levy on grocery suppliers amid rising diesel costs
What happened
Woolworths increased the fuel levy charged through its logistics network to food and grocery suppliers. The metro fuel levy rose from 17.47 per cent to 19.88 per cent, while the regional levy increased from 44.20 per cent to 50.30 per cent. This change affects major producers, including PepsiCo and Ingham's, who utilize Woolworths' logistics arm, Primary Connect, for transport.
From abc.net.au
Why it matters
The levy increases are a common method used by freight providers and retailers to recover additional operating costs when diesel prices rise sharply. This directly raises freight costs for suppliers like PepsiCo when delivering goods to Woolworths.
ONS figures indicate a rise in grocery costs, which is prompting discussion regarding food manufacturer pricing and input costs.
From abc.net.au
Who's involved
- WoolworthsRetailer that increased the fuel levy charged to suppliers.
- PepsiCoFood and grocery manufacturer that supplies Woolworths.
- InghamFood and grocery manufacturer that supplies Woolworths.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- PepsiCoSpeculative
PepsiCo could see increased freight costs when supplying Woolworths.
- InghamSpeculative
Ingham might pass increased fuel levy costs through the supply chain.
- Coles GroupSpeculative
Coles Group might face increased competitive pricing pressure due to higher input costs from Woolworths.