Expect prices of food and other imported goods to increase as global fuel prices surge following ongoing tensions in the Middle East, with wholesalers and retailers saying the impact has already reached shipping costs and consumer prices.

Higher fuel prices are flowing through the global supply chain, increasing freight charges, production costs, and the landed cost of goods arriving in Samoa, which relies heavily on imports.

Ah Liki Wholesale Commercial Manager Clyve Westerlund said the effects are already visible in the local market.

“This has already affected the costs of goods imported into Samoa as production costs have directly been affected on the supply side,” Westerlund said. 

“So we can expect more inflationary pressure from this over the coming months, and will perhaps only start decreasing again after sufficient time, if any.”

He said shipping companies have quickly adjusted to higher fuel prices by adding extra charges on top of normal freight rates.

“Shipping carriers are one of the first in the world to add extra fees on top of normal rates as they are also directly affected due to fuel pricing,” he said. 

“Importers have already started factoring this into their costs," said Westerlund.

Frankie Supermarket and Wholesale also confirmed that freight and shipping costs have increased in recent weeks as global oil markets remain volatile.

Marketing and Sales Manager Channa Wijethunga said geopolitical tensions are driving uncertainty in global energy and trade markets.

“Almost all imported goods are experiencing price increases,” Wijethunga said. 

“The Middle East conflict has disrupted energy markets, raising global oil prices and adding risk premiums to shipping and trade.”

He said shipping costs have risen due to higher bunkering fuel charges, tighter global shipping capacity, congestion at major ports, and supply chain pressure.

Wijethunga said the company is working to manage the impact through cost-saving measures and negotiations.

“We are closely monitoring international developments and working proactively to mitigate risks,” he said. 

“This includes transport efficiency, limiting non-essential operations while ensuring uninterrupted distribution, and actively negotiating with suppliers and shipping lines.”

He also said the company is exploring longer-term solutions, such as renewable energy options, to reduce reliance on fuel costs.

On future pricing, Wijethunga said consumers should expect further increases.

“Rising global fuel prices will inevitably increase consumer costs,” he said. 

“To support loyal customers, we are shrinking our margins and negotiating with suppliers to minimise the impact. However, consumers should expect gradual price increases in the coming months as global conditions persist," said Wijethunga.