LORRIES run by an established Worcestershire haul-age company could soon switch to fuel made from vegetables in a bid to cope with rocketing petrol and diesel prices.

Adam Purshall, fleet manager of Martley-based distribution service TM Logistics, part of Taylors of Martley, said the business was 'seriously considering' running its vehicles on biodiesel - fuel made from vegetables.

The company runs 150 vehicles across the country. Mr Purshall said it has clauses within its contracts with customers to account for any increases in fuel prices, which are met by the customer. However, he said the cost had become so high that it was necessary for them to look at alternative fuel sources. It comes as both petrol and diesel have now hit £1 a litre in the region.

Mr Purshall added: "Ultimately the customer is ending up paying for a commodity, the cost of which seems to be rising incredibly at the moment. It also affects a lot of the small hauliers who we're working in partnership with and it's very much a widespread problem throughout the industry.

"Certainly, alternative fuel sources are something we're looking at both because of the environmental effect and from a cost perspective."

Meanwhile, other companies across the area have been feeling the pinch from the rising fuel costs. Martin Pinches, director of logistics firm Pinches & Sons, of Worc-ester's Blackpole Trading Estate, said they were also having to pass the cost on to the customer. He added: "It's a major concern but we can't do anything about it and we've had to charge the customer because we couldn't cope otherwise. I think the biggest problem we have is the competition from the European firms because our fuel is the priciest in the European Union and they're coming over here on cheap fuel with their products."

Christopher Harvey, policy and lobbying manager for the Chamber of Commerce Herefordshire and Worcester-shire, said it was having a significant impact on both manufacturing and service businesses. It recently organised an energy forum bringing together businesses with high energy costs, energy prov-iders and technology firms exploring energy saving to look at ways of helping those affected.

Mr Harvey added: "We're also lobbying the treasury over the development of the Chancellor's budget package to look at ways to help businesses go down this particular route of becoming an energy-efficient in terms of offsetting capital costs against tax."