Haulage firm hit by soaring fuel costs

A haulage firm says it has had to spend thousands of pounds more on fuel this week due to rising prices.

John Reid Trucking Limited, based in Brigg, North Lincolnshire, has a fleet of 35 HGVs and typically buys more than 20,000 litres (4,400 gallons) of fuel every week.

Since the US-Israel war with Iran began, the price of a barrel of Brent crude - the global benchmark for oil prices - has risen from $73 to top $100 as of Thursday 12 March.

The company's operations director Oliver Reid said, before the prices rose, it spent about £25,000 per week on fuel but, in the last week, the cost had risen to £31,500 plus VAT.

Reid said: "We pay for fuel weekly, so it's a lot of money to try and find up front. It's a worrying time to be honest with you."

He said the company had also had to increase the fuel escalator on its deliveries, which rises as fuel prices do.

"I'll be honest and say, luckily, we've had positive conversations with customers so far, and most of them have been understanding and have said, it is what it is, we'll just have to deal with it," he said.

"But nobody really knows the true impact just yet. But it could be, potentially, quite dramatic, really."

The Hull and Humber Chamber of Commerce said it believed there was a "degree of profiteering going on" by petrol retailers, following feedback from its members.

David Hooper, the chamber's managing director, said: "The fuel that the petrol retailers have in their tanks hasn't suddenly gone up. That will have been paid for weeks, if not months ago.

"Obviously we might see some increases coming in if this conflict continues for any length of time.

"The markets are very reactive, but I don't think there's really any excuse for petrol retailers putting their prices up by the extent that we have seen in the last few days."

The petrol retailers association (PRA) said it would not he able to comment on the chamber of commerce's claims.

However, last week, PRA executive director Gordon Balmer said: "The conflict in the Middle East has increased the wholesale cost of petrol and diesel, which will mean pump prices will have to go up.

"Rising fuel prices hurt the economy in the form of higher inflation, impacting already hard-pressed household budgets. To help motorists and businesses, I am today writing to the Chancellor urging her to abandon the planned fuel duty increases."

Earlier this week, Chancellor Rachel Reeves said: "This government will not tolerate price gouging, and I will be meeting with petrol retailers this week to raise concerns and to get prices down at the pumps for all our constituents."

Listen to highlights from Hull and East YorkshireorLincolnshireon BBC Sounds, watch thelatest episode of Look North.

Download the BBC News app from the App Storefor iPhone and iPad orGoogle Play for Android devices