Organizations across the North East are reporting significant financial pressure due to soaring diesel prices, which have crossed the £2 per litre threshold for the first time in the UK. The spike follows severe disruptions to global oil production and transport caused by the ongoing conflict in Iran over the past seven months.
Scott Jobson, head of income generation for the Newcastle-based cancer charity Daft as a Brush, revealed that the charity is spending £15,000 monthly on fuel—a £5,000 increase from last year. The organization, which operates a fleet of 30 vans covering 600,000 miles annually to transport patients to hospital appointments, had hoped to transition to electric vehicles. However, rising fuel costs have diverted funds that were earmarked for those upgrades.
Volunteer driver Davey Hall highlighted the dramatic increase at the pump, noting that filling a tank from half-empty previously cost between £40 and £45. Last week, the same task cost £94. Jobson emphasized that the charity receives no discounts on fuel, meaning every pound spent on diesel is a pound taken away from donated funds.
In Middlesbrough, Billy Johnson, director of Teesside Minibus Hire, described the current pricing environment as unsustainable. The company frequently enters into long-term contracts with schools and businesses based on historical fuel costs. While Johnson stated they are not yet operating at a loss, the margin is so thin that passing costs on to customers is difficult, as those clients are also grappling with inflation.
Johnson warned that some customers are turning to cheaper, unlicensed operators who do not bear the same overheads. He admitted that if fuel prices remain elevated, the long-term viability of his business is in question.
Meanwhile, the government has extended its freeze on fuel duty until the end of the year, maintaining the tax cap at 5p per litre for both petrol and diesel. This policy was originally introduced following the Russian invasion of Ukraine in 2022. Officials have stated that despite the war in Iran, the UK maintains a diverse and resilient fuel supply and there is no cause for concern regarding shortages.
I’m surprised the government hasn’t done more. Keeping the duty freeze until the end of the year feels like too little, too late.
Unlicensed operators cutting corners is dangerous. If legit businesses fail, who’s left to provide safe transport for vulnerable people?
Six hundred thousand miles a year in diesel? Those charities should be pushing hard for government grants to switch fleets to electric sooner.
It’s heartbreaking that charity funds are going to fuel instead of helping patients. They need relief now.