Fuel surcharges bite into grocery bills as diesel prices soar. Keegan-Filion Farm, a South Carolina meat producer, added a $5 delivery fee to offset rising fuel costs, citing “already expensive” free-range products. The war in Iran has pushed Brent crude up 56%, with diesel prices climbing 44% since February.

Perishables like Chilean salmon, now costing $6.48 per pound (up from $6.25), face layered surcharges during transport. Wholesale distributors like UNFI, which raised surcharges from $35 to $65 per delivery as diesel hit $5.38 a gallon, warn of cascading cost pressures. Analysts note a 10% fuel price increase could drive 2-3% food price hikes, compounding existing inflation.

Grocery chains face a tightrope: pass costs to shoppers risking demand, but absorb them amid razor-thin margins. With food prices already 30% above pre-pandemic levels, consumers—particularly low-income households—may cut discretionary spending, straining businesses.