Expert comment: rising fuel prices put supply chains under pressure, leaving consumers paying the price despite supermarket discounts
The University of Salford’s operations and supply chain expert, Dr Jonathan Owens, highlights why rising fuel prices put supply chains under pressure, leaving consumers paying the price despite supermarket discounts.
Jonathan comments: “While the fuel discounts offered by Tesco and Asda are welcome, they provide only limited financial relief for motorists facing diesel prices exceeding £2 per litre.
“Saving between £3 and £4.80 on a typical 60-litre tank may appear attractive, but requiring customers to spend £40 or £60 in-store to qualify raises legitimate questions about the actual benefit, particularly for households already struggling with the rising cost of living.
“The real concern is the growing cumulative financial burden on consumers. Households are effectively being hit twice: directly through higher fuel costs for commuting, school runs and essential journeys, and indirectly through rising prices for food and everyday essentials as businesses absorb or pass on increased transportation and distribution costs. These pressures are particularly acute for lower-income households, rural communities and those who have little alternative to using their vehicles.
“From a supply chain and logistics perspective, sustained increases in diesel prices have consequences far beyond the petrol forecourt. Transport operators, hauliers and smaller businesses operate on increasingly tight margins, with limited capacity to absorb significant increases in operating costs. As these pressures move through supply chains, they risk creating further inflationary pressures, ultimately leaving consumers paying more for essential goods and services.
“Although supermarket fuel promotions offer some welcome short-term relief, they should not distract from the wider economic consequences of persistently high fuel prices. A few pounds saved at the pumps can quickly be outweighed by higher weekly shopping bills and the increasing cost of everyday living.
“Ultimately, consumers need more than temporary discounts. They need greater stability and affordability in fuel prices, because when the cost of moving goods and people rises, the financial consequences are felt across the entire economy, with households ultimately bearing much of the burden.”
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