A HAULAGE boss has blasted a predicted increase in petrol prices — saying it will be the ʻnail in the coffinʼ for smaller companies.
Robin Fenn, managing director of RG Fenn Ltd, in Guinevere Avenue, Stretton, said it was ‘pretty disgusting’ that forecourts were increasing their prices, particularly in the current climate.
Mr Fenn spoke out after it was revealed that fuel prices were set to soar past 110p a litre - or £5 a gallon - in the run-up to Christmas. Meanwhile, BP recently announced profits of more than £1 billion a month, a 60 per cent rise on the £1.9 billion profit it made between April and June.
Fuel prices are set to reach their highest point since September, 2008, rising by 26 per cent since the start of the year.
The Government is also set to impose its planned 2.5 per cent increase in VAT.
Industry experts say recent price increases have been prompted by supply companies stockpiling oil.
Tax rises and the falling value of the pound are also said to have contributed to the increases.
The motoring consumer website petrolprices.com has calculated the costs of petrol at 28 stations within a 10-mile radius of the Mail offices.
Yesterday, the highest price for diesel in the area had already passed the 110p a litre mark at 110.9p, above the local average of 108.7p. The UK average was at 109.8p. Locally, the highest price of unleaded was 109.9p, while the average was 107.6p. The UK average was 108.6p.
With prices set to soar past 110p, the cost of filling an average family car with unleaded fuel will be almost £65.
Prices peaked in July, when petrol reached 119.5p a litre and diesel was 133.1p.
Mr Fenn said: “This is another nail in the coffin for smaller haulage firms, as many cannot pass costs on because their customers won’t accept the rate increases —there is no sliding scale for these smaller firms.
“It is pretty disgusting that in the current climate, the forecourts are increasing their prices. They need to be more sympathetic, but you can’t control them — you can’t enforce legislation on them, so they can change what they like and hold customers to ransom.
“My company is not badly affected as we have a major contract with Nestle and many blue chip companies.
We have a sliding scale with them with so we can negotiate and set rates annually, depending on the fluctuating market. Many major hauliers have this sliding scale.
“We haven’t struggled as such, but even a 2p or 3p increase can make a massive difference to everyone — as everyone is affected.
“We have 44-tonne trucks and fuel costs us about £150,000 a year, or £12,000 to £15,000 a month, for between five or six vehicles, so a 2p rate increase is quite significant.”