Higher Fuel Costs Following Invasion Of Ukraine May Soon Impact Prices At Bay Area Grocery Stores
PLEASANTON (KPIX 5) – As Russia's invasion of Ukraine is being blamed for higher gasoline prices in the Bay Area and across the country, logistics experts predict increasing costs could soon be felt at supermarkets.
It seems like every day the price of gas is going up across the state, with big jumps happening in the last two weeks.
On Wednesday, the average price of a gallon of regular unleaded in California jumped up $0.13 from the day before to $5.57 and diesel went up $0.15 to $5.99.
Logistics experts said the cost of shipping goods and food across the country is going up as well.
"I'm a coupon lady, I'm a crazy coupon lady," Yasmin Mukhtar told KPIX 5, laughing.
Mukhtar said she is already watching her grocery budget and tries to buy store brands instead of name brands and plans meals to ensure her family doesn't waste any food.
"The pay is not going up. Only the inflation is. So where do people get the money from to cover their daily needs?" she said.
Lance Chadwick said he's probably going to play less golf. His grandchildren live in Santa Cruz and he sees them often. He says those trips are already getting more expensive due to rising gas prices, and if the cost of food goes up as well, he'll have to save money somewhere.
"It's just a luxury really. I'd have to play three days a week instead of seven," he said.
According to the USDA, 5% to 10% percent of the cost of dry goods at the grocery store is transportation costs, and for refrigerated or frozen foods that can be up to 20%.
"It is a challenge. Every day seems like a new day, there's new fees coming out," said Melissa Perry. She works for Pleasanton-based HA Logistics, which helps companies ship their products - mostly with truckers.
According to Perry, transport prices have jumped as much as 20% in the last year, and the current fuel price increases are raising rates yet again.
"Anywhere from say $200-$300 to $1,000 more a load going across the country," she said.
Perry points out that if the cost of shipping goods goes up, the stores will have no choice but to pass that added cost on to consumers. She said the prices of shipping went up in the last year partly due to inflation, supply chain issues, and trucker shortages.