'CUT fuel duty' is the message to the Government from firms in Worcestershire and Herefordshire as rocketing petrol prices force bus fares up and increase the cost of transporting goods around the region.

Many companies are feeling the pinch from petrol now costing about £1 a litre after Hurricane Katrina knocked out much of US oil production on the Gulf of Mexico.

After steady rises in the price of fuel throughout the year due to soaring demand, Martin Pinches, director of logistics firm Pinches & Sons, in Worcester's Blackpole Trading Estate, said he felt the time was

now right for the Government to cut fuel duty.

"I think it's a disaster for everybody, not just for businesses, but for consumers as well," he said.

"Businesses can't keep absorbing it so the Chancellor should give us something back."

Martley-based distribution logistics service TM Logistics fleet manager Adam Purshall said it had special contracts with its major contractors to take account of hikes in fuel prices, but expressed sympathy for other firms.

"A lot of people are really suffering - particularly the smaller hauliers, who it's certainly had an impact on," he said.

"In an industry which is already hit with increasing legislation, the fuel prices are spiralling out of control and not making matters any better."

Christopher Harvey, policy and lobbying manager for the Chamber of Commerce Herefordshire and Worcestershire, said manufacturers and the haulage industry would be particularly hard-hit, as would many service businesses.

"The oil price rise will hit manufacturers in their raw material costs as well," he said.

"There are quite a few businesses in the county that use petroleum-based raw materials, for example companies producing plastics."

If prices go up it'll add to their difficulties as, in most cases, markets are very price sensitive and they'll not be able to pass all of that on to their customers."

Bus operator First Midland Red has already had to raise its fares in June because of rising fuel costs.

Spokesman Dawid Maciejewski: "It certainly has been a drain on us over the past year or so as it's a constant cost we've had to absorb.

"What happened in June was we found we couldn't absorb any more and had to put the prices up.

"I think it's hitting home in this area because it's been quite cheap for fuel traditionally.

"It is something that affects all companies, though, and it's a fact of life unfortunately."