Skip to content
Search
AI Powered
Latest Stories

Surging fuel prices will make food costlier, lead to fewer deliveries in remote areas: FWD

Surging fuel prices will make food costlier, lead to fewer deliveries in remote areas: FWD
Fuel prices are seen at a petrol station on March 11, 2022 in Wimborne, England. (Photo by Finnbarr Webster/Getty Images)
Getty Images

Rapidly increasing fuel cost will eventually be passed on to consumers through hikes in food prices, Federation of Wholesale Distributors (FWD) chief has said.

Surging fuel prices are piling on top of other pressures on shops including labour shortages, retailers said.


With fuel prices hitting record levels, the trade body for UK wholesalers has told the BBC that its members will pass on increased transportation costs to their food shops and restaurant customers, who will in turn pass on those costs to consumers.

"Food price inflation is already happening, but this is going to make it worse, because there'll be charges passed on to customers and then obviously to end users as well," said James Bielby, chief executive of FWD.

"So, people buying food and drink in shops, when they're eating out, will be paying more because the cost of distributing those goods to the outlet has gone up so much."

Fuel prices are rising amid fears of a global economic shock from Russia's invasion of Ukraine. Oil touched 14-year-highest level this week before slipping slightly.

"If you're distributing goods around the network, fuel costs will be 25 percent to 30 percent of your distribution costs,” Bielby continued.

"Those wholesalers who are buying on what's known as the spot market are seeing their costs go up by as much as 50 percent per litre. So it's a huge impact, and that then leads to a surcharge on customers."

He said some larger businesses who had hedged, or bought their fuel in advance, weren't yet as affected, but were likely to feel the impact when current contracts came to an end.

"When you're thinking about all of the other pressures in the supply chain which have been going on for the last two years and beyond, it makes it really, really difficult.

"And that ultimately means that consumers are having to spend more on food and drink at a time when their energy bills are going up, at a time when the cost of living is going up hugely."

Bielby said that if prices remained high, operators which bought fuel on the spot would also choose to fill up tanks only partially, for cashflow reasons. This could mean some harder-to-reach areas would be supplied less frequently.

"So if they get deliveries every other day, that might go to once a week. This would mean the choice and range of products they get will go down.

"That would be typically be areas at the end of the distribution line, so rural communities or coastal towns," he said.

Many wholesalers had already been bracing for added costs from April, when they would no longer be allowed to use cheaper red diesel to run their refrigeration units or freezers, he added.

More for you

Mary Glindon

Mary Glindon

Labour MP cautions proposed vaping tax could hinder smoking cessation efforts

Labour MP Mary Glindon has cautioned that a new excise tax on vaping could discourage smokers from switching to less harmful alternatives.

Glindon, who also chairs the All-Party Parliamentary Group for Responsible Vaping, said the chancellor’s proposed tax, which will add £2.20 per 10ml of vaping liquid when it goes into effect on October 1, 2026, will “hurt working people”, who rely on vapes to quit smoking.

Keep ReadingShow less
Liverpool c-store license revoked after grave accusations

iStock image

Liverpool c-store license revoked after grave accusations

The alcohol license of Liverpool convenience store, which had become the “go to” location for illicit sales, has been revoked after a 13-year-old girl had to be taken to hospital after getting drunk on vodka she had purchased unchallenged from the store.

According to local media reports, members of Liverpool Council’s licensing and gambling sub-committee have taken a dim view of the levels of “wholesale breaches and criminal offences” at Old Swan Express on Prescot Road, stripping owner Sinnathamby Arumugasamy of his licence, despite him only gaining permission to trade at the former angling store in February of this year.

Keep ReadingShow less
Minor dip in footfall ahead of Golden Quarter
Hollie Adams/Getty Images
Getty Images

Minor dip in footfall ahead of Golden Quarter

October’s footfall figures declined marginally as compared to last year, shows latest industry data, highlighting concerns for a policy environment that supports growth and investment.

According to data by British Retail Consortium (BRC), total UK footfall decreased by 1.1 per cent in October (YoY), down from +3.3 per cent in September. High Street footfall decreased by 3.6 per cent in October (YoY), down from +0.9 per cent in September.

Keep ReadingShow less
SPAR supports spooktacular activity at Preston primary school

SPAR supports spooktacular activity at Preston primary school

Children at Ashton Primary School in Preston got into the spirit of Halloween with some spooktacular support from SPAR.

Thirty children in Reception class took part in a cookery session to concoct a healthy pumpkin and carrot soup with ingredients supplied by James Hall & Co. Ltd. SPAR recipe cards were also provided to children to take home alongside additional pumpkins, carrots, and onions, enabling them to recreate their bubbling broth together with their parents.

Keep ReadingShow less
Kepak Group acquires Summit Foods to expand convenience offer

Brian Farrell, CEO of Kepak Foods

Kepak Group acquires Summit Foods to expand convenience offer

Kepak Group has announced the acquisition of Summit Foods, a UK-based company specialising in chilled and frozen convenience foods. With annual revenues of £24 million and a team of 200 employees, Summit Foods is an established player in the UK’s convenience food sector. The acquisition, is part of Kepak’s strategic plan to further grow its food business organically and via acquisition.

“We are pleased to welcome Summit Foods to the Kepak Group," said Brian Farrell, CEO of Kepak Foods. "This acquisition aligns with our growth strategy, developing our presence in the UK convenience and out-of-home food channels. Summit's portfolio of fresher for longer sandwiches, chilled and frozen meals & snacks complements our existing micro snacking offerings and allows us to deepen our presence across these markets”.

Keep ReadingShow less