Cooking oil price surges hurt Australian takeaway outlets including fish and chips

Justin Quinton, the owner of Saltmine Fish and Chips in the New South Wales Hunter region, told Guardian Australia his Salamander Bay eatery previously used a blend of cottonseed, canola and sunflower oil.

But as cooking oil prices began to soar, it became difficult for the small business to afford all three.

The war in Ukraine, a drought in Canada, global shortages and record-high inflation have all heated up retail prices for cooking oil.

In the latest consumer price index data, the price of cooking oil has increased by 14% in the past 12 months.

Belinda Clarke, the chief executive of the Restaurant and Catering Industry Association of Australia, said the price of cooking oil, among other kitchen staples, has increased.

Unlike many other hospitality businesses, Saltmine was allowed to stay open as an essential service.

Thomas Elder Markets analyst Andrew Whitelaw said the record-high costs all tie back to everything getting more expensive for farmers.

Whitelaw said that when the cost of production increases, farmers have to raise prices to cover the costs.

Likewise, for small business owners like Quinton, raising food prices is the only way to absorb record-high costs.

But a reprieve may be in sight for takeaway businesses and consumers.

Whitelaw said while cooking oil prices have significantly risen at the consumer level, canola prices have actually dropped dramatically over the past two months.

According to Whitelaw, the prices being paid by consumers and takeaway retailers will likely reflect the input price of food products like canola oil from months ago.