The Rising Fuel Costs: A Challenge for Teesside Businesses
The ongoing conflict in Iran has sent shockwaves through the business community in Teesside, with rising fuel prices becoming a major concern. As the cost of diesel and petrol soars, local businesses are feeling the pinch, and some are even questioning their long-term sustainability.
One of the most affected industries is transportation and logistics. Jacob Francis, owner of Cleveland Tree Services, is feeling the impact firsthand. He recently spent £95 to fill up his van, a significant increase from the previous £60. This is a stark reminder of the financial strain that rising fuel costs can have on small businesses.
"It's been immense," Francis said. "You're on the road all the time with our job, you use far too much fuel anyway, [it] just doesn't help."
The situation is not unique to his business. Steve Howe, a driving instructor in Hartlepool, shares similar concerns. With the pandemic already hitting his industry hard, the prospect of rising fuel costs is a double blow. Howe warns that businesses relying on vehicles may eventually have to pass on the increased costs to their customers.
"Here we go again," he said. "Unfortunately, it will get to the point where any business which relies on a vehicle, where there is a larger price increase, eventually we will have to pass that on."
The impact of rising fuel prices is not just financial. It also affects operational strategies. Francis suggests that getting jobs closer together can help reduce fuel consumption and costs. However, he is also aware that raising prices could drive clients away, making it a delicate balance to strike.
"It's just something we're going to have to absorb and try and work through," he said. "If you get jobs near each other, try and do them all on the same day so you're not driving about."
The situation is not confined to Teesside. The RAC reports that the cost of diesel has risen to £1.82 per litre on average, the highest level since 2022, while petrol now averages at £1.52 per litre. This trend is likely to have a broader impact on businesses across the UK.
Despite the challenges, some businesses are adapting. Howe, with over 30 years of experience, advises a pragmatic approach. He suggests regular car maintenance to save fuel and encourages car sharing, public transport, and walking where possible. These strategies can help businesses and individuals alike weather the storm of rising fuel costs.
However, the lack of immediate support from the government is a concern. Chancellor Rachel Reeves has refused to promise any immediate support for drivers, emphasizing the need to keep public finances under control. This decision could further strain businesses already struggling with rising costs.
As Teesside businesses grapple with the rising cost of fuel, the future remains uncertain. The conflict in Iran shows no signs of abating, and the economic fallout is likely to persist. It remains to be seen how businesses will adapt and whether the government will provide the necessary support to help them through this challenging period.
