Costs climbing

 

Pictured: Toodyay Hardward and Farm Supplies store manager Jeff Hudson.

The diesel shortage is starting to bite in Toodyay, with a local hardware store warning rising fuel costs, big price hikes on products made from oil-based plastic and disrupted deliveries could soon push up prices for residents and farmers.
Toodyay Hardware and Farm Supplies owner Damien said the flow-on effects were already being felt across its supply chain, with freight costs skyrocketing in the past few weeks.
He said the current diesel shortage was driving up costs and cutting down deliveries.
“Our freight supplier charges us a fuel levy on top of the standard pallet cost and at the end of February, this was a comfortable 17 percent,” he said.
“Today, it’s sitting at 60 percent and with seeding starting, I can only expect it to climb higher.”

Trying to keep the costs down

To combat the rising costs, some suppliers have added extra delivery fees and freight companies have scaled back deliveries to manage higher costs.
Damien said to date the business has done what it can to absorb these extra costs.
“But if this drags on past April, we may have no choice but to start raising prices.”
Damien said the fuel shortage was also causing price hikes on some PVC pipes and plastic fittings.
Simply because a huge portion of the oil used to make plastic resin comes from the exact same supply chain as the oil used to produce our fuel.
“It’s all connected.”
He said several suppliers had warned of price increases between 20 percent and 50 percent on certain products.
Despite this, several major suppliers have also indicated they do not plan immediate increases.

 A hit for farmers

Shadow Minister for Agriculture Lachlan Hunter MLA said the crisis was now hitting agriculture hard, with devastating consequences for farmers heading into one of the most critical periods of the year.
“Without diesel, tractors stop, seed stays in the shed and next year’s harvest is put at risk.”
Mr Hunter said without urgent action, the fuel crisis will quickly become a full-blown food crisis.
“When diesel does not reach the people who produce and move our food, the cost does not disappear, it lands squarely on the kitchen tables of Western Australian families,” he said.
“This is how a fuel crisis becomes a food price crisis, with higher freight costs, disrupted supply and more pressure on families already struggling with the cost of living.”

Taking steps to help

In response, the State Government has activated emergency powers to take control of fuel supply data and direct deliveries to the regions most in need.
Fuel for agriculture is being prioritised, to ensure seeding can go ahead in hard-hit communities.
Road train limits have also been relaxed to move more diesel and petrol into regional areas faster.
A taskforce led by Deputy Premier Rita Saffioti is working with regional suppliers, including Great Southern Fuels, and the Federal Government to find new ways to get fuel into affected areas.
The measures come after widespread reports of fuel shortages across regional WA.
For now, Toodyay residents are being urged to brace for slower deliveries and the possibility of higher prices if the fuel squeeze continues.

By Rashelle Predovnik