AUSTRALIA | A five percent surcharge could soon be slapped onto the bill at Australian cafes and restaurants as the fuel crisis deepens.
The Australian Restaurant & Cafe Association has outlined its concerns on the fuel crisis, warning customers that venues won’t be able to absorb the increased costs, and that businesses are already having to operate with “razor-thin” margins.
The surging price of fuel across Australia has had rippling effects on the economy.
Hospitality businesses are now being hit with fuel levy charges and increasing costs for transport, freight, supplier deliveries, utilities, refrigeration, and waste collection.
A spokesperson for the Australian Restaurant & Cafe Association said that these costs had been passed on by suppliers and that it had become a difficult situation for operators to manage.
“The Australian restaurant and cafe industry is giving the hospitality industry permission and our endorsement to charge a one to five percent fuel levy surcharge on cafe, restaurants and other hospitality business bills.”
Earlier in the month, the ACCC granted an urgent interim authorisation to the Australian Institute of Petroleum, its members, and other relevant industry participants to coordinate in managing impacts to Australia’s fuel supply chain stemming from the conflict in the Middle East.
“We have urgently assessed and granted this interim authorisation, received late Wednesday, because we recognise the impact of the current situation on consumers, businesses, and farmers,” ACCC Chair Gina Cass-Gottlieb said.
“We recognise how critical it is that industry is able to quickly and efficiently coordinate and respond to the supply chain disruptions we are experiencing.”
However, allowing the major fuel companies to coordinate raises a real risk of harm to competition.
“We are granting the urgent interim authorisation with conditions to mitigate this risk.”
In addition, the ACCC has imposed conditions to the authorisation that seek to maintain independent fuel distribution.
“We note that independent suppliers are part of their local, regional communities and have established relationships in their areas. They are a crucial part of supply chains in this market and need to be part of the solution to the fuel supply issues, including by receiving adequate allocations from the major suppliers.”
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