Petrol price rises could mean big trouble (From Free Press Series)

Petrol price rises could mean big trouble

SINCE the Free Press first investigated fuel prices in Monmouthshire back in October last year the cost of a litre of petrol and diesel has rocketed by as much as seven pence.

That could mean big trouble for local businesses and drivers.

One company has already admitted rising fuel costs are pushing it near breaking point, while a local driver has revealed she may have to reconsider her career if the cost at the pump goes up by just a fraction of the figures being suggested.

In October of last year a litre of unleaded petrol at Safeway in Llanfoist, near Abergavenny, would have set a driver back 74.9p. Now owners of a vehicle are having to fork out a massive 81.9p.

Spare a thought, though, for motorists in Monmouth where unleaded is now fetching a staggering 85.9p a litre at the UK Petroleum garage and 86.9p at the nearby Total service station on the M50.

Abergavenny journalist Kath Skellon works for the Free Press' sister paper Caerphilly Campaign. She admitted she is having to break the bank as prices stand, shelling out £45 a week on petrol to get to and from work.

If prices continue to rise by just a few pence then she might have to consider quitting her job.

"I struggle as it is," said Kath, 26. "I love my job, but I would have to contemplate is this an affordable career. Any further price rises would just be totally unworkable. I spend about a fifth of my wages on fuel as it stands. Anything else is just unrealistic," she added.

The statistics make for sore reading. A driver spending £20 on unleaded fuel at Safeway in Llanfoist near Abergavenny last October would get just over 26-and-a-half litres of fuel for their money compared to just under 24-and-a-half litres now - a loss of over two litres.

Robert Price Builders' Merchants are one of many local businesses feeling the pinch. The Abergavenny-based company is one of the biggest employers in Wales with a workforce of over 300 employees and a fleet of 57 vehicles.

Fuel for its haulage section alone accounts for over 25 percent of out goings.

"Fuel price increases are obviously a concern because our own direct costs go up and up very radically," said managing director William Godfrey.

"We can only plan so far. "For instance, with the expected hike in the budget we have made allowances, but for increases like those being experienced now there is just no planning.

"We will try and absorb the prices as much as possible without affecting our customers. What is a concern for me is whether the people who supply us will be able to absorb then and cope.

"What you have to remember is that we use fuel in many ways and not just for on the roads. Even the cost of fuel for mixers, generators and brick cutters has to be considered. It might be little, but it all adds up.

"It does put pressure on us. The galling thing is that the government can just sit back with all the tax and VAT coming in," he said.

Yet, while Robert Price Builders Merchants will be able to survive any major fuel price increase, other local firms won't like Chepstow-based haulage specialists Hicks Logistic Ltd.

The company has been operating for a quarter of a century, but owner Terry Hicks warned they could go bust if petrol prices rose any more.

"We spend £80,000 a month of fuel. Any more and we would be at breaking point. The customers would either have to take it on or we go out of business," said Mr Hicks.

"It's a major concern. What ever increase there is effects our profit margin. At the end of the day we have not got enough profit to sustain any sort of increase above one or two pence. Once it goes above that we are in a loss.

"We employ 45 people and their jobs could be at risk if we can not pass the rise in fuel costs onto our customers. It's whether our customers accept that, but if it does go up they will simply have to be passed onto survive. That's the only option left," he added.

Farmers too face feeling the brunt of a hike in fuel prices according to Peredur Hughes, Vice President of the NFU Cymru.

"No farming business in Mon-mouthshire will escape escalating costs if fuel prices rise," he warned.

"Increases in fuel prices will impact directly on all Monmouthshire's rural businesses. Arable growers in the county use significant quantities of fuel on and off farm for harvesting, haulage to stores and drying.

"Monmouthshire's livestock producers similarly face higher costs of haulage of stock to market or to abattoirs," he added.

What are your views? Has the cost of fuel grown out of control, or are we too reliant on vehicles? - Write to us at the Free Press, 7 Lion Street, Abergavenny, Monmouthshire, NP7 6PN.

Comparison of fuel costs in October 2003 and June 2004 in some of Monmouthshire's petrol stations.

Safeway Llanfoist October 2003 74.9p unleaded 75.9p diesel June 2004 81.9p unleaded 82.9p diesel

Esso Brecon Road Abergavenny October unleaded 74.9p diesel 75.9p June 2004 81.9p unleaded 82.9p diesel

Q8 Raglan October 2003 80.9p unleaded 81.9p diesel June 2004 84.9p unleaded 85.9p diesel

Esso Monmouth October 2003 81.9p unleaded 82.9p diesel June 2004 84.9 unleaded 84.9p diesel

UK Petroleum October 2003 81.9p unleaded 83.9p diesel June 2004 85.9p unleaded 84.9 diesel

Total Monmouth October 2003 82.9p unleaded 82.9p diesel June 2004 86.9p unleaded 87.9p diesel

Texaco Chepstow October 2003 76.9p unleaded 78.9 diesel June 2004 84.9p unleaded 85.9p diesel