Consumers should prepare for inevitable price increases as supply chains face significant disruptions due to the ongoing conflict in the Middle East, experts warn.

According to Elizabeth Jackson, a specialist in supply chain management and logistics, the question is not whether prices will rise, but when these higher costs will start affecting consumers.

“Every bit of food originating from Australian farms relies on diesel-powered vehicles for transportation,” Jackson explained.

She added, “Even the simplest foods, such as fresh fruits and vegetables that require no processing, as well as the most heavily processed exports, are fundamentally reliant on transportation systems.”

“These foods also depend on diesel for their production, particularly with mechanized farming equipment like tractors,” she noted.

The initial impact is expected to be felt in the prices of fresh produce, which have shorter supply chains and a constant dependence on transportation.

Increases were possible within two to three weeks with a “slow burn” most likely rather than one sudden spike.

“The fresher the produce, the quicker we’re going to see the prices increase,” Jackson said.

At least 107 petrol stations in NSW have run out of diesel, while more than 40 have reported having no fuel at all.

Jackson said the situation underscored the need for stronger fuel resilience in Australia, including greater investment in alternative energy sources such as biofuels, rather than continued reliance on fossil fuels.

In the short term, she said governments were limited in how much they could intervene beyond managing supply.

Coles said it would review how much it was paying companies transporting food and groceries to its stores more frequently.

The supermarket giant did not say whether this would lead to a price increase for shoppers.

“We will be temporarily increasing the frequency that we review the fuel component of our freight rates from monthly to twice per month — so that changing fuel costs are reflected more quickly and fairly,” a Coles spokesperson said.

“In the current climate, this means transport providers will be able to recoup more of the rising fuel costs.”

Commonwealth, state and territory leaders will meet next week for another national cabinet meeting on the shortages.

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