Soaring fuel costs hit small businesses
It comes as fuel prices reach their highest since 2022, driven by conflict in the Middle East.
Soaring fuel costs are hitting small businesses hard
Noel Lewis, who runs a haulage company in Worcestershire, says he is facing more than £1,200 a week in extra fuel costs
Small businesses are taking the biggest hit from rising fuel prices, according to the owner of a haulage firm.
Noel Lewis, who runs Lewis Light Haulage & Storage in Stourport-on-Severn, Worcestershire, said he was having to absorb thousands of pounds a month in extra costs because of fuel prices.
His remarks come as fuel prices - pushed up by conflict in the Middle East - have climbed to their highest level since 2022, with diesel averaging £1.92 per litre, according to the RAC.
A Treasury spokesperson said the government continued "to protect the British people and businesses from this crisis".
"This means drivers benefit from the extension of the 5p fuel duty cut, with diesel 11p per litre cheaper until the end of the year than it would have been compared to plans inherited from the previous government," they added.
The spokesperson also said hauliers would benefit from a 12-month road tax "holiday".
With six vehicles operated by his company, Lewis said he was now facing about £1,200 in extra fuel costs each week.
He said smaller firms like his were struggling to compete with larger companies that have "bigger buying power on their fuel".
"They have the economies of scale working in their favour [...] if you put your prices up somebody might come in and be able to suffer that cost for a few weeks, just to knock you out the game," he said.
The price of diesel is nearly £2 a litre in Telford, Shropshire
Lewis said he and his wife had been forced to take wage cuts to keep money in the business and avoid passing price rises on to customers.
"With businesses, you want to keep custom coming back to you so you do not want to put your prices too high," he said.
According to the RAC, the cost of filling up a vehicle is now at a similar level to when Russia launched a full-scale invasion of Ukraine in 2022.
The US-Israel war with Iran has badly disrupted oil production and transport across the region, with the effects being felt around the world.
It is not only businesses that are being affected - individual drivers are also seeing sharp rises at the pumps. Susan Parkes from Telford drives a diesel car and said the prices she pays had become "extortionate."
"We went on holiday and we had to put in an extra £20 in the tank which, brought us up to about £120," Parkes added
"You have to cut your cloth accordingly. Where you are used to having a treat, you have got to think about your meals and shopping [because of money spent on fuel]."
Susan Parkes said the price of diesel had become "extortionate"
Katie Woollacott, also from Telford, said she used an app to find the cheapest fuel and often drove outside the town to find lower prices.
"Personally, I would rather travel about 20 minutes to 30 minutes going either towards Birmingham or Whitchurch, because it's like 20p cheaper," she said.
"I stopped to refill the other day and it cost me about almost £70 for my 1.6 litre Mini, so it's definitely a jump as I do not normally spend over 50.
A government spokesperson said they would "tackle the cost of living to make life's essentials affordable again and bring back hope", and pointed towards the Fuel Finder service, which uses data to help drivers find the cheapest fuel near them.