FIRMS in Yorkshire are paying almost £7million more for fuel today than they were a year ago.
The revelation has triggered a call today from Susie Cawood, boss of the 1,000-member York and North Yorkshire Chamber of Commerce, for “something to be done to bring fuel prices down.”
The region’s 345,000 small and medium-sized businesses are collectively paying on average £6,746,657 more on fuel today compared with 12 months ago, as the average price of a gallon of fuel has risen from £5.50 to £6.31, according to new research by invoice finance specialist Bibby Financial Services Its survey reveals that just under a third of firms, 30 per cent, who have been hit by the price rise will pass the extra cost on to the customer.
Nearly half (46 per cent) of firms in the region have been forced to make cuts in areas of the business and 27 per cent of business managers and owners are currently reviewing company vehicles and planning to introduce more efficient models.
The research calculated the number of small and medium-sized businesses in the region and how much fuel is consumed at average prices. It found that a total of £50.7 million will be spent this year based on current rates, compared to £43.9 million in 2010.
Mrs Cawood said: “This illustrates that fuel prices are a huge concern for businesses, particularly those in rural areas such as North Yorkshire.
“The fact that only 30 per cent of affected businesses are passing on the cost increase to their customers shows that firms are having to take an innovative approach to deal with cost pressures, for example developing niche markets and continuing to work harder and smarter.
“It is a balancing act. Do you put prices up and lose customers? Or do you take the hit and risk the viability of your business?
“Clearly something has to be done to bring fuel prices down.”
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