Food prices not rising evenly as fuel costs begin to flow through system
As fuel prices rise and global supply pressures continue, attention is turning to what this could mean for food costs in the weeks ahead.
Community food network Box Divvy says it has seen a noticeable increase in questions from members about how petrol prices may flow through to the weekly shop.
“People are joining the dots,” said Box Divvy co-founder Anton van den Berg. “Fuel touches every part of the food system - from farms to transport - so it’s natural people are asking what comes next. What we’re seeing so far is not a uniform increase, but pressure building in different parts of the system.”
Diesel prices are now sitting close to $3 per litre in many areas, with higher prices already being reported in regional locations. This is increasing transport costs and contributing to fuel levies across parts of the supply chain. Fertiliser prices have also lifted, adding further pressure at the farm level.
At the same time, softer demand for fresh produce is offsetting some of these increases, creating a more uneven pricing environment across categories.
“It’s not a straight line,” Anton said. “Some costs are rising, others are being absorbed. That’s why the weekly shop can feel a bit less predictable, rather than simply more expensive.”
Box Divvy operates as a network of more than 350 local Hubs across NSW, ACT and Victoria, where members order groceries online and collect them from a neighbour. The model connects people with fresh, seasonal produce and pantry items from mostly Australian suppliers, while keeping supply chains shorter and more transparent.
“About half of our produce is sourced locally, so it doesn’t travel as far,” Anton said. “When fuel prices rise, distance matters. Shorter supply chains help limit how much of that cost gets passed on, and help maintain supply.”
Across its Hubs, Box Divvy is also seeing early shifts in behaviour, with members planning more carefully, focusing on seasonal produce, and reducing waste.
“We’ve definitely been thinking more about what we buy each week,” said Leigh Lind, a Box Divvy member in Sydney’s Inner West. “There’s a bit of uncertainty around fuel and food, so we’re planning more and sticking to what we need. I feel glad we’re part of a system that’s a bit closer to where food is coming from - it just feels more stable week to week.”
Farmers are already feeling the pressure more directly, with higher diesel prices, rising fertiliser costs and increased transport charges affecting margins.
Box Divvy says it has already responded by offering many of its growers a 10–15% increase in farmgate prices to help offset rising costs, though this is not applied uniformly.
“In many cases that increase covers most of the cost pressure growers are facing,” Anton said. “But where supply is strong, there’s also a need to be careful not to push prices too far and risk dampening demand.”
“These pressures are real, and over time they do flow through,” Anton said. “What we’re seeing now is the early stage of that. The next few weeks will be telling in terms of how much of this starts to show up more clearly in prices.”
For households, the impact may not always show up as immediate price spikes, but as a grocery shop that varies more depending on supply, seasonality and distance.
“These are structural pressures,” Anton said. “They don’t hit all at once, but they do build. What it shows is how exposed the food system can be to fuel and global disruption. There’s a growing need to build more resilient, locally connected systems so communities are better prepared when these kinds of shocks occur.”
Issued by Lanham Media on behalf of Box Divvy
Media Contacts:
Fleur Townley | [email protected] | 0405 278 758
Greg Townley | [email protected] | 0414 195 908
Available for interview:
- Anton van den Berg, Box Divvy Co-founder
- Leigh Lind, member from Sydney’s Inner West (also has a connection to the Southern Highlands).
- Local members or Hubsters in NSW, VIC or ACT on request. Check locations here
General media assets available here
About Box Divvy
Box Divvy is a free, community-driven food co-op that connects households with fresh, seasonal produce and healthy pantry staples. With over 350 local Hubs across NSW and the ACT, and expansion into VIC, it’s a simple and affordable way to shop - no membership fees, just a regular commitment to order. Each Hub is run by a neighbour, and members collaborate to reduce waste, share deliveries, and keep costs low. By supporting mostly Australian and local suppliers, Box Divvy helps families eat well, live more sustainably, and make food choices they can feel good about. Find out more at boxdivvy.com
