Small enterprises in Shropshire and Worcestershire are shouldering the burden of escalating fuel prices, with operators warning that rising costs threaten their viability against larger competitors.
Noel Lewis, who operates Lewis Light Haulage & Storage in Stourport-on-Severn, reported that his company is absorbing approximately £1,200 in additional weekly expenses due to the surge in diesel prices. With an average cost of £1.92 per litre according to the RAC, fuel expenditures have returned to levels last seen during the onset of Russia’s full-scale invasion of Ukraine in 2022.
Lewis explained that his business lacks the economies of scale enjoyed by larger firms, making it difficult to compete on price. He noted that raising charges could drive customers toward bigger rivals capable of absorbing short-term losses to eliminate competition. To keep the business afloat without passing costs onto clients, Lewis and his wife have taken personal wage cuts.
The price hikes are largely attributed to disruptions in oil production and transportation caused by the conflict between the US-Israel coalition and Iran. A Treasury spokesperson stated that the government remains committed to shielding British businesses from the crisis, highlighting the extension of the 5p fuel duty cut until the end of the year. Additionally, hauliers will benefit from a 12-month road tax holiday.
Individual motorists are also feeling the strain. Susan Parkes from Telford described pump prices as “extortionate,” recounting a recent holiday fuel stop that cost £120, a £20 increase over her usual spend. She added that households are now forced to reduce spending on meals and shopping to compensate for higher travel costs.
Other residents are adapting by seeking out cheaper fuel outside their immediate areas. Katie Woollacott, also from Telford, revealed she travels 20 to 30 minutes toward Birmingham or Whitchurch to save roughly 20p per litre. She reported paying nearly £70 to fill her 1.6-litre Mini, a significant jump from her typical £50 expenditure.
In response to public concern, a government spokesperson pointed to the Fuel Finder service, which utilizes data to help drivers locate the lowest prices nearby, as part of broader efforts to make essentials affordable again.
The 5p fuel duty cut is clearly not enough when diesel is nearly two pounds a litre.
Who has time to drive thirty minutes further just to save a few pounds? It feels unfair.
It is heartbreaking to see small business owners taking personal pay cuts just to survive.