Petrol costs are fuelling pressure on business

Jun 25 2009 By Sam Wood, The Journal

INCREASING petrol prices are putting pressure on businesses in the North East and experts warned last night that the cost is set to get higher.

After falls at the pump at the end of 2008, the cost of fuel has been rising steadily for the last few months. Although still below the peaks of last summer, prices have risen by around 18% since the turn of the year.

The average price of unleaded is now at around 102.7p in the region, up from 87.4p at the beginning of the year, according to figures from website PetrolPrices.com.

The rises were blamed on higher crude oil prices by petrol companies, driven by the beginnings of a recovery from the global recession.

Fuel duty has also been increased twice by the Government since last December.

Cab driver Terry Gorman, a member of the Newcastle Hackney Forum, said livelihoods were being put at risk by the increases.

He said: "It has got to the stage where it has become hard for many of us to live, it is creating huge problems for us.

"Petrol is now over a pound at most places you go, a big increase from the end of last year. I don’t know what is going to happen in the coming months. I blame the Government. They have put fuel duty up and they have done nothing for us."