Hidden 45 per cent fee about to hit online shoppers from fuel surcharges

Australians who are already feeling the pinch may soon see their online shopping costs soar as delivery companies impose fuel surcharges of up to 45 per cent on retailers struggling to absorb increased charges.

New data from Shippit’s 2026 Fuel Surcharge Matrix reveals fuel surcharges average 13 percent, with some reaching as high as 45 percent.

The figures showed that 83 percent of carriers said fuel volatility was their biggest challenge, while half implemented temporary fuel surcharges in the past year.

While many businesses have quietly absorbed these costs, industry insiders have warned this situation will not last for long.

“Retailers are absorbing costs left, right and center, which is reflected in higher prices of goods sold,” Shippit co-founder and co-CEO Rob Hango-Zada told NewsWire.

The logistics technology platform works with thousands of retailers and hundreds of delivery carriers across Australia, including Kmart, Woolworths and Myer.

“There’s no doubt we’ll see an impact on inflation across the board,” he said.

The pressure has intensified as carriers moved from monthly fuel surcharge reviews to weekly updates; This is a sign of how volatile the market has become.

“The weekly changes in fuel prices are pretty dramatic,” Mr. Hango-Zada said.

“The market landscape is changing so quickly and the impact on their bottom line is so great that they need to make sure they pass that cost on to their customers as quickly as possible.”

Shoppers are likely to see hidden costs in higher product prices or increased free shipping thresholds.

While consumers previously had to spend $49 for free delivery, that figure could soon rise to $65 or higher.

Even an average surcharge of 13 percent is a big hit for retailers who sell products at a margin of just a few dollars per item.

With surcharges reaching up to 45 percent on some routes, businesses face an impossible choice: absorb costs that erode profits, or pass them on to price-sensitive consumers and risk losing sales.

Urban deliveries benefit from density; Making multiple deliveries on one street causes fuel costs to be spread over many deliveries.

But rural deliveries, with drops every few kilometers, mean fuel costs per delivery increase significantly.

This means regional shoppers will be hit the hardest.

Those purchasing heavy items such as furniture, dishwashers and large appliances will also face higher costs as fewer items will fit in delivery vehicles.

Pressure is mounting on small businesses, especially those that do not have the financial support of large retailers to weather the surge.

“We are seeing more pathways leading to more pressure on local businesses and we don’t see them easing in the near future,” Mr. Hango-Zada said.

Although one in three carriers identifies electric vehicles as a major trend, less than 10 percent of carrier fleets currently operate on alternative fuels.

With capital investment cycles lasting eight to 10 years, carriers cannot quickly replace newly purchased diesel vehicles.

“Even if every carrier tomorrow decided to replace their entire fleet with electric vehicles, they couldn’t do it because there wasn’t enough supply,” Mr. Hango-Zada said.

For now, shoppers can expect the squeeze to continue, as retailers are caught between taking on unsustainable costs and passing them on to consumers who are already watching every dollar.