Businesses struggle to profit as fuel prices soar

**Businesses struggle to profit as fuel prices soar**

The price of filling a vehicle has climbed sharply as the conflict in the Middle East continues to disrupt global oil supplies.

Businesses across the West of England say they are finding it hard to turn a profit as petrol prices rise to almost £2 per litre.

Disruptions at key shipping routes such as the Strait of Hormuz have tightened worldwide oil supplies amid the ongoing conflict in the Middle East.

Retailers dealing with higher wholesale costs for fuel deliveries must either pass the increase on to customers or accept lower profit margins.

Pieter-Jon Allis, who owns Stroud Taxi in Gloucestershire, said he was under "continual pressure to lowball" his prices so he could keep customers and remain in business.

Petrol prices vary across the region, but rural locations are more expensive because of higher transport costs, lower sales volumes and less local competition.

Filling up in Bristol currently costs an average of £1.70 per litre, while some petrol stations in Hullavington in Wiltshire are charging £2.40.

Elsewhere, a petrol station in Upton Noble, Somerset, has raised prices to £1.86, and another near Whaddon will cost £1.96 per litre.

"Obviously it's a concern because our chief business cost on a day-to-day basis is fuel. I think we're headed for pretty tough times ahead," Allis said.

He said at least 50% of the calls he gets are requests for quotes, as customers compare his prices with other services, including Uber.

"We're under a continual pressure to lowball ourselves and do prices we were doing 15 years ago, even though fuel prices are at an all time high," he said.

"It's just a complete nightmare in that respect."

Susannah Moffat, who runs Ledbury Road Services in Tewkesbury, Gloucestershire, said "the last thing we want is to lose more trade" by raising prices.

"The only thing we can do is keep cutting our margin, time and time again, to try and keep the price increases to a minimum," she said.

Moffat said the petrol station was now "relying" on income from shop sales instead.

"It's a difficult business to be in at the moment. Seems like there's no end in sight really, but hopefully it won't be forever," she added.

Freewheelers Blood Bike charity say they may have to reduce the number of callouts if fuel prices continue to rise

Meanwhile, volunteer blood bike charity Freewheelers, which supports the NHS by delivering lifesaving medical products, said they are "sucking up the impact in our reserves".

The organisation covers an operational distance of more than 220,000 miles per year across Bristol, Somerset, Bath and west Wiltshire.

"We've spent £17,000 on fuel per year over the last couple of years," said Chris MacDonald, chair of the Bristol branch.

"This current year it's heading towards £22,000, so it's a significant jump."

The charity relies solely on public fundraising, and said if fuel prices continue to rise, they would have to reduce the number of "low priority" callouts.

"But we're not there yet. We can sustain the current situation for a while by digging into our reserves," MacDonald assured.