Cafes Use Surcharges to Offset Fuel Crisis

Topic: Petrol Prices

Regulators are monitoring businesses with surcharges.

In short:

Some businesses add surcharges to offset petrol price hikes.

Sydney Fish Market has a temporary levy of 81 cents per kilogram of seafood.

What's next?

Consumer rights authorities are monitoring the situation.

Consumers may notice a fuel levy surcharge at some businesses.

The war in the Middle East has impacted oil supply, raising petrol prices.

The price hikes led to surcharges on some goods and services.

Sydney Fish Market introduced a temporary levy on seafood bought at auction.

The market said the levy would be passed on to commercial fishers.

Sydney Fish Market has a temporary levy on seafood.

'Survival mechanism'

The Australian Restaurant and Cafe Association advised cafes to introduce a fuel levy surcharge.

The surcharge should be implemented on a case-by-case basis.

The Australian Restaurant and Cafe Association says the surcharge should be on a case-by-case basis.

UNSW academic economist Timothy Neal said the shock to oil prices led to cost-push inflation.

Dr Neal said smaller companies would likely not absorb higher prices from suppliers.

They'll feel pressure not to increase their prices too much.

NSW Premier Chris Minns said businesses should hold off implementing surcharges.

Consumers will vote with their feet if they have to.

Samantha Cull introduced a 5 per cent surcharge on all food and drinks at her cafe.

Samantha Cull introduced a 5 per cent surcharge at her cafe.

The franchisee owner said it was an honest decision to make.

The cost of food and fuel levies is an ongoing domino effect.

Communication, transparency key

Nitika Garg says businesses risk angering consumers with surcharges.

Businesses need to communicate clearly to avoid consumer backlash.

The biggest thing is to communicate why you're introducing surcharges.

Regulators have a role to play in scrutinising price increase practices.

It will put off consumers emotionally and rationally.

Is it legal?

A NSW Fair Trading spokesperson said businesses can set their own prices.

The minimum total price must be displayed clearly and prominently.

The price of the item and the surcharge must be combined into a single price.

In restaurant settings, menus should display a single price for the item.

It should not be added to the bill at the end of the meal.

The removal of surcharges on debit and credit cards is one of the Reserve Bank's reforms.

The ACCC said they would take action in relation to fuel surcharging.

Surcharging could be concerning if the fee is not removed despite being temporary.

Businesses should give customers notice of planned price increases.

Individual business owners know their market and customer base better than anyone else.

They are best placed to make decisions on pricing and communication.

Consumers drive pricing

Some customers are willing to pay a fee for weekend service.

Rick Krever said people decide how much they're willing to pay for something.

A business makes its own decision to charge more on weekends.

They can because they worked out that people are willing to pay 10 per cent more.

Professor Krever said fuel levy surcharges would be harder to implement over the next three months.

It's just another name for price rise, but attributed to something else.