Small businesses suffer as fuel prices rise (From Worcester News)

Small businesses suffer as fuel prices rise

11:40am Thursday 18th June 2009

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SOARING fuel prices are hitting small businesses in Worcester already struggling to survive the recession.

The average price of petrol rose almost 5p between mid-May and mid-June – the second highest monthly increase ever, the AA said.

The average cost of petrol is now 102.66p a litre compared with 97.68p in mid-May.

The average price of diesel has risen 1.36p since mid-May and is now 104.85p a litre.

Steve Cooke, owner of the haulage business Anything Goes in Worcester, said he was struggling to keep the impact of rising fuel prices away from his customers.

“The increase of fuel prices has dramatically made an impact and the increase of costs cannot be recovered. I don’t see why it should be increased,” he said.

Head of fleet at Taylors of Martley Adam Purshall agreed.

“Thirty-five per cent of our costs are fuel and it is definitely making an impact. When the fuel goes up, the prices goes up for customers,” he said.

A post-budget survey carried out by the Federation of Small Businesses found that 79 per cent of members thought the Government’s rise in fuel duty would have a negative impact on their business.

Spokesman for the federation Angela Smith said: “Any increase has a knock-on effect on all levels of supply chains whether it’s consumer or business-to-businesses.

“Small businesses struggle to compete with large businesses and this is due to the fuel price.”

The owner of an independent petrol station in Worcester blamed the Government’s increase in fuel duty.

Nigel Woodhouse, who owns Tolladine Service Station, has been in the petrol business for 35 years and says the rise in prices had infuriated him and his customers.

“Customers do not like it,” he said. “It’s not about the price, it’s what the Government does.

“We are the only independent petrol station in Worcester whereas the others in Worcester are privately owned. We would not be here if it was not for the (adjoining) workshop services.”

Last month’s 4.98p-a-litre rise in petrol is exceeded only by the 5.61p monthly increase endured by drivers between mid-May and mid-June last year.

AA president Edmund King said. “At a time of recession, seeing petrol prices rise almost as fast as they did last summer is a bitter pill for UK drivers to swallow – many of whom have lost their jobs, had their pay frozen or have seen savings income collaspe with falling interest rates.”

The AA said the petrol rise of 4.98p meant the cost of refilling a typical 50-litre fuel tank had gone up £2.49 in the past month; a family with two petrol cars is spending £10.80 more per month on fuel than in mid-May; and UK consumers are spending an extra £3,216,196 a day on petrol compared with a month ago.

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