{"id":95158,"date":"2026-04-23T00:00:00","date_gmt":"2026-04-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=95158"},"modified":"2026-04-23T06:11:58","modified_gmt":"2026-04-23T06:11:58","slug":"fuel-price-surge-drives-up-freight-logistics-costs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2026\/04\/23\/fuel-price-surge-drives-up-freight-logistics-costs\/","title":{"rendered":"Fuel price surge drives up freight + logistics costs"},"content":{"rendered":"<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>The<\/strong><strong> pressure of higher fuel costs is already being felt by businesses, but most of the <\/strong><strong>impact is still working its way through the economy. <\/strong>The knock-on effects of higher fuel costs on freight, aviation, as well as foot and retail pricing are expected to unfold over the coming weeks rather than show up all at once, CIO at Century Financial Vijay Valecha told EnterpriseAM.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>ICYMI- <\/strong><a href=\"https:\/\/enterpriseam.com\/uae\/2026\/04\/01\/fuel-prices-spike-as-much-as-72-4\/\" target=\"_blank\" rel=\"noopener\">This month<\/a>, UAE fuel prices rose sharply, with diesel rising 70% and petrol around 30%, in line with global spikes in oil and gas prices.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Diesel\u2019s sharp hike has already increased the cost of moving goods<\/strong>, causing rises in freight rates and delivery pricing, which is where the impact tends to surface first, Valecha added. Couple that with shipping disruptions, which are also raising the cost of moving fuel and goods, adding to ins. and transport expenses \u2014 and the pressure has definitely started hitting supply chains, even if it has not fully reached consumers yet.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Transport and logistics are the first pressure points. <\/strong>\u201cCertain transportation and logistics providers have already rolled out fuel surcharges, while industrial companies, including those exposed to petrochemicals and packaging, are also raising prices,\u201d Valecha added.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Sectors like transport, logistics, construction, and delivery services are particularly <\/strong><strong>exposed<\/strong>, as fuel makes up a large share of their operating costs, head of trading (MENA) at Saxo Bank Hamza Dweik told EnterpriseAM. Fuel-intensive sectors \u2014 which also include retail \u2014 can see fuel account for 20-40% of operating costs, Dweik noted. Deliveroo declined to comment on the impact of higher fuel prices on its operations, while EnterpriseAM was unable to reach other players like Talabat or Noon ahead of publishing.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Retail and food are next in line, especially with food being exposed due to the UAE\u2019s <\/strong><strong>reliance on imports.<\/strong> Supermarkets are facing higher delivery and packaging costs, while global increases in fertilizer and transport are feeding into food prices, though with a lag, Valecha added.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>A lot of businesses are still absorbing part of the increase to remain competitive, <\/strong>but that\u2019s unlikely to hold if costs remain elevated, especially for those in food distribution and logistics, Dweik said.<\/p>\n<p class=\"tag-border-left\">So where will you, as a consumer, feel the pain first?<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>This is unfolding as a staggered cost-push cycle. <\/strong>Fuel feeds directly into transport and utilities, which together account for roughly 10% of the consumer basket, Valecha added. The broader macro effect is likely to remain contained in the near term, but Valecha warned that prolonged pressure can lead to second-round effects as higher transport and logistics costs gradually filter through to consumers.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Airlines are also facing higher jet fuel costs<\/strong> \u2014 which are expected to feed into ticket prices over time, Valecha said.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Even if conditions stabilize, it may take time for supply chains to normalize and for <\/strong><strong>pricing pressure<\/strong> <strong>to ease<\/strong>, Valecha said. Fuel price volatility is likely to remain part of the operating environment rather than a temporary disruption, Dweik added.<\/p>\n<p class=\"tag-border-left\">How does pricing even work?<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>\u201cCrude oil sets the base for prices, but the industrial fuels market is seeing a shortage in <\/strong><strong>fuel supplies for a number of reasons<\/strong>, including limited refining capacity, tight inventory levels of products, and delays in logistics that have magnified the severity of each shortage,\u201d he added.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>With parts of the regional refining system offline and shipping constrained<\/strong>, the downstream chain compressed much faster than crude supply, he noted.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>That means that despite the ceasefire helping oil prices ease slightly<\/strong>, we\u2019re unlikely to see prices go down to pre-war levels for a while.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\">\n","protected":false},"excerpt":{"rendered":"<p>Retail and food are next in line \u2014 especially with food being exposed due to the UAE\u2019s reliance on imports<\/p>\n","protected":false},"author":1,"featured_media":95159,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[305],"tags":[17,304,32,129],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-95158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-macro-picture","tag-enterprise-logistics","tag-macro-picture","tag-trade","tag-uae","wpautop","entry"],"acf":{"mongo_id":"4d02d18f-030f-44cb-b23b-fa861b851496","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/4\/1147.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Fuel spikes hit freight, delivery costs first","related_issue":[95150],"teaser":"Retail and food are next in line \u2014 especially with food being exposed due to the UAE\u2019s reliance on imports","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Fuel price surge drives up freight + logistics costs - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/04\/23\/fuel-price-surge-drives-up-freight-logistics-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fuel price surge drives up freight + logistics 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