FUEL prices in the York area have soared towards a record high, with a further 3.5 pence hike in the cost of a litre looming next month.

The increasing costs at the pump have sparked warnings from private hire and taxi drivers that fares are set to rise next year, while hauliers said some companies will be put out of business.

A filling station survey by The Press has revealed a litre of unleaded petrol now costs between 118.9 pence and 123.9 pence in our region – about 11 pence more than at the start of the year.

Experts said they will rise again in the new year because of increases in both duty and VAT.

Barry Hamer, chairman of the York Private Hire Association, said today: “We cannot keep on soaking up these increases indefinitely. They are terrible and are crucifying the business. Drivers are having to work ever longer hours just to make the same amount of money.”

Alan Rowley, chairman of the York Hackney Carriage Drivers Association, said struggling drivers would have to bear the brunt of the soaring costs until the next review of their council regulated fares next May, when a heftier-than-usual rise looked inevitable. “We cannot keep absorbing these increases,” he warned.

Train companies in the York area have already announced their fares are going up next month by more than five per cent.

But there was one ray of hope today for public transport passengers, with York’s biggest bus operator First saying it would do its utmost to avoid fare increases.

A spokesman said it was protected for the time being against fuel price increases by a decision earlier this year to “hedge” its fuel costs. “We struck a deal to buy our fuel for a period at a fixed rate, which will remain even if prices generally are going up.”

The increase in fuel prices is partly caused by a rise in the cost of crude to $90 a barrel, although this is still well below its peak of $145 in July 2008.

The AA said a key factor was the pound’s lower value against the US dollar. “For every ten cent decrease in the pound’s value, we will be paying 3p at the pump,” said a spokesman. He warned: “Freedom of the road will be lost for a lot of people.”

Hauliers have also warned that increasing diesel prices will be disastrous for the industry, with more companies going out of business.

Steve Biddle, northern regional director of the Road Haulage Association, said: “Diesel prices have risen by four per cent in a fortnight. These continuing cost increases hurt when you are already working on very tight margin. A number of operators will fail because of these continuing costs and other factors.”


Prices at the pumps

• Cooperative, Tadcaster Road, York: Unleaded: 123.9, Diesel: 127.9

• Millgate, Selby: Unleaded: 122.9, Diesel: 126.9

• Tesco, Clifton Moor, York: Unleaded: 120.9, Diesel: 124.9

• Morrisons, Foss Islands Retail Park, York: Unleaded: 119.9, Diesel: 123.9

• Jet, Lawrence Street, York: Unleaded: 119.9, Diesel: 123.9

• Sainsburys, Jockey Lane, York: Unleaded: 119.9, Diesel: 123.9

• Shell, Hull Road, York: Unleaded: 118.9, Diesel: 123.9

• Sewell service station, Barmby Road, Pocklington: Unleaded 122.9, diesel 125.9

• Hayton service station, Hayton, near Pocklington: Unleaded 121.9, diesel 125.9

(Survey conducted Monday and Tuesday)