It’s hard not to feel the impacts of cost of living in the current environment. Increasing inflation, back-to-back interest rate rises and now the soaring price of fuel brought on by the war in the Middle East.
Supply, demand and the cost of fuel is worrying, and the global uncertainty has highlighted the fragility of our energy sovereignty, at a regional, state and national level.
Committee for Ballarat is currently engaged as part of a statewide network convened by the Department of Energy, Environment and Climate Action (DEECA) with peak bodies, industry groups and all levels of government, to closely monitor the impact and consider and assess local, regional, state, and national solutions. Our role is to provide insights based on the real-time experiences of our members.
We thank Regional Development Victoria (Grampians) for inviting our representation.
Following the initial 17 March forum, we reached out to our members for feedback and provided the following to government.
- Fuel supply constraints and extreme price volatility are having a significant impact on the workforce, service delivery, and the communities our members support. These pressures are contributing to hardship, particularly in areas already vulnerable to cost-of-living increases.
- The cost of fuel is rapidly driving up the cost of transport, which is driving up the cost of doing business across all sectors. All respondents are reporting the ‘passing on’ of the increases to the customer, either directly or indirectly.
- There is real concern that increasing transport costs will quickly translate to higher prices for essentials such as food and groceries, and that consumers will reduce their spend in other areas, thus reducing demand. Fears of ‘COVID Like’ conditions returning are real, especially in the construction, hospitality and Visitor Economy sectors.
- Ongoing uncertainty regarding fuel availability and pricing has created operational instability. In some organisations, quotes can now only be held for 24 hours, reflecting daily price movements and limiting the ability to plan with confidence. This affects organisations, clients, and community members who rely on services remaining accessible and affordable.
- While global oil price increases are a contributing factor, current market conditions appear to be amplifying existing cost pressures, including labour and other operational expenses. The combined effect is placing additional strain on essential services and frontline workers.
As we all know, the global situation is highly volatile, and it seems each day there is a different message coming from the warring parties.
Whilst our federal and state governments have demonstrated a National approach to respond and plan for fuel certainly, real concerns for our future remain across all levels of our regional community.
Committee for Ballarat will be involved in a further forum of statewide leaders on March 31 and we will again ensure our regional voice is heard.
The disruption to fuel and other inputs has the potential to severely impact our economy, and whilst the current war is one we have little capacity to influence, it is a crisis with significant consequences for many. We all hope for a ceasefire and a speedy return to the rules of fair trade.