HIGHER interest rates, soaring fuel prices and massive grocery bills are in order for regional Victorians already feeling the squeeze while the economy tries to recover from the impact of COVID-19.

Last week locals were coming to grips with unleaded petrol reaching $2.00 per litre and above, directly attributable to the invasion of Ukraine and the impact of the oil sanctions war between Russia and the United States, with warnings to expect prices to hit $3.00 by end of year.

Speculation only serves to fuel the tendency for some businesses to pre-empt inflation and put prices up and this week; it has already been widely reported that coffee lovers should expect their morning ritual takeaway to hit $7.00.

The struggle between consumer and business owners as to who absorbs the increasing financial pressure is real and already underway with locals feeling it at the bowser and supermarket.

Local coffee van owner Natalie Kalms said that the cost of beans has already gone up as a direct consequence of transport and fuel price increases.

“That’s just the start,” she said.

“There’s everything else that’s going to be impacted by rising costs as well.”

The agricultural industry is feeling the pressure from diesel prices rapidly escalating and although the industry will keep moving, producing and delivering goods, it’s inevitable that costs will be passed on to consumers.

This has compounded already rising transport and freight costs due to higher fuel prices associated with the pandemic and more recently the New South Wales and Queensland floods with interruptions to supply and staff shortages.

Local farmer Geoff Amery who has a farm at Culla, south west of Harrow, said the rise in the cost of diesel particularly is “certainly going to change things and I guess it is going to have to be passed on with produce going up a bit more”.

“That (ongoing high fuel costs) will have to be assessed as we go on.

“I’m not looking forward to when my 2000-litre fuel tank on the farm is empty – I probably won’t be filling it right up.

“Hopefully the conflict in Ukraine will be sorted out soon – but it’s a bit of an unknown going forward.”

Local business, Hamilton Mini Excavator and Dumper Hire operator, Steven Wheelhouse said all his machinery is run on diesel and the rising cost of diesel is noticeable.

“We do a lot of kilometres in our machinery and we’re starting to really notice the impact,” he said.

Although the Federal Budget is due to be handed down in under two weeks, the government is not speculating on cost absorbing measures yet or a cut in the fuel excise, but in response and in an election-sounding pitch, treasurer, Josh Frydenberg said that a Coalition government is better at managing the economy.