Newsagent/Publisher contracts are stopping newsagents from passing on the high cost of petrol. These contracts restrict the control newsagents have in passing on reasonable operational cost increases. This means that newsagents have to carry the higher fuel costs and in some cases it is making the home delivery of newspapers unprofitable.
While News and Fairfax can increase advertising rates to cover higher operating costs, newsagents rely on publishers to adjust the cover price and to allow a fuel surcharge to be applied or delivery fees to increase.
This is an untenable situation as it leaves these independent and often cash strapped small businesses carrying an unfair burden while their much bigger suppliers benefit.
What newsagents want is an urgent and open discussion about fuel and agreement on reasonable trigger points for delivery fee adjustment reflecting the high price of fuel.