Small businesses affected by rising fuel costs, business group reveals
Following the news that both petrol and diesel fuel costs have increased considerably, the Federation of Small Businesses (FSB) has revealed that many small firms are being affected by rising operating costs as a result.
According to figures published by the government, December saw prices for petrol and diesel rise to their highest levels since 2014.
Petrol prices rose to 121.11p at the end of last year, whilst diesel prices reached 123.46p.
The increases can be partly attributed to a rise in the cost of oil. Commenting on the issue, Simon Williams, Fuel Spokesman for the RAC, said: ‘December was the month oil reached its highest point for over two and a half years – something which motorists are now feeling the effect of at the pumps.’
The FSB found that the proportion of its members reporting a rise in operating costs is at its highest in five years. Nearly a third of these members stated that fuel costs are a main contributor to the rise in operating expenditure.
Mike Cherry, National Chairman of the FSB, said: ‘Affordable travel on roads is absolutely vital to the success of small businesses and local economies. That’s why it’s critical that the fuel duty freeze set out in the Autumn Budget is continued in the future.
‘Over the coming year, we look forward to the government doing its utmost to help small firms battle the rapid rise in operating costs. Where vehicles are concerned, that also means taking a hard look at the ever-increasing Insurance Premium Tax (IPT).’