British consumers purchasing Vegemite from UK supermarket chain Asda are paying just £1.85 ($3.61) while Australians shopping at Coles are paying $5 for a comparable 220g jar.

That is 32 per cent more in Australian dollars in the UK, revelations that have drawn the ire of social media users in recent days amid ongoing public anger about grocery prices Down Under.

Australians are questioning why an Australian product like Vegemite can cost less halfway across the world?

“Think it is deeply evil that something (famously) made in Melbourne is cheaper to buy in the UK than it is here,” X user @caneyehoe posted.

It comes after earlier posts purporting to show Tim Tams and beef in Japan being sold for much lower prices than Australian consumers face at supermarkets.

University of Technology Sydney associate professor Sanjoy Paul said over the long term there’s no good reason products made in Australia should cost less at supermarkets overseas.

But in particular instances there may be a range of reasons goods like Vegemite and TimTams are cheaper at an overseas supermarket than at Coles, Woolworths or Aldi.

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Why goods might be cheaper overseas

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Pricing differences between businesses in different countries occur for a range of reasons on both the demand and supply sides of the economy.

Grocery prices also change frequently.

Paul explained that on the supply side businesses in different markets have varied cost structures that affect the prices they offer consumers, including wages and capital costs.

“There is a significant difference here in terms of warehousing for retail and salaries,” Paul said.

“This could be one of the reasons that the costs overseas are lower.”

Other factors

Average full-time earnings in Australia are above the OECD average and the United Kingdom, which is below average.

The higher salary paid by companies in Australia is to some extent reflected in local prices.

Additionally, the prices supermarkets charge for products like Vegemite and Tim Tams can depend on how and when they acquired shipments of those products themselves.

That is one factor economists point to for prices being generally lower in markets like the UK, compared to Australia.

But it’s not necessarily the case that this is a definitive factor in Asda selling Vegemite cheaper than Coles.

Discount offer

Sometimes manufacturers sell products at a discount, or under larger contract arrangements that could result in a jar of Vegemite or packet of Tim Tams being cheaper for a retailer to buy.

Supermarkets can also purchase products from third-party suppliers or other retailers, who may offer them different terms on certain goods than the actual manufacturer of that product might.

There are also a range of demand factors that can potentially explain price differences between markets.

Paul explained that the competition supermarkets face in their market for goods like Vegemite and Tim Tams plays a role in the size of retailer margins, in addition to relative demand for those products among consumers in those markets.

In other words, in a market with a larger level of demand for Vegemite and Tim Tams it may be easier for retailers to command a relatively higher price than in a market such as the UK where those products may not be as sought after.

“The UK is a more competitive [supermarket] industry than Australia,” Paul said.

“That competitive pressure might make their profit markets lower compared to Australia.”