Businesses across the West of England say they are struggling to make a profit as fuel prices soar, driven by Middle East shipping-lane disruption that has tightened global oil supplies. Taxi firms, petrol stations and a volunteer medical charity are absorbing higher costs rather than pass them fully to customers.
Businesses across the West of England say they are struggling to make a profit as petrol prices soar to nearly £2 per litre. Disruptions around shipping lanes such as the Strait of Hormuz have tightened global crude oil supplies amid the ongoing conflict in the Middle East, and retailers facing higher wholesale fuel costs must either pass the increase to customers or forfeit their margins.
Prices vary sharply by location. Filling up in Bristol currently costs an average of £1.70 per litre, while some stations in Hullavington, Wiltshire, are charging £2.40. A station in Upton Noble, Somerset, has raised its price to £1.86, and one near Whaddon now charges £1.96 per litre.
Taxi firms squeezed on both sides
Pieter-Jon Allis, owner of Stroud Taxi in Gloucestershire, said he faces continual pressure to lowball his prices to retain customers while still covering fuel as his chief business cost. He added that at least 50% of the calls he receives are requests for quotes, as customers compare his pricing against services such as Uber. According to BBC News, Allis said: "It's just a complete nightmare in that respect."
Susannah Moffat, who runs Ledbury Road Services in Tewkesbury, Gloucestershire, said the only option is to keep cutting her margin to limit price increases, since losing more trade is the last thing she wants. Her petrol station is now relying on shop sales instead of fuel income to stay viable.
Charity fuel bill climbs toward £22,000
Volunteer blood bike charity Freewheelers, which delivers medical products for the NHS across Bristol, Somerset, Bath and west Wiltshire, said it is absorbing the cost from its reserves. The charity covers more than 220,000 miles per year, and according to Chris MacDonald, chair of the Bristol branch, its fuel bill is heading toward £22,000 this year, up from £17,000 in recent years. Freewheelers relies solely on public fundraising and said it would have to reduce "low priority" callouts if fuel prices keep rising, though it can sustain its current situation for now by drawing on reserves.
Source: BBC News
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