Rising fuel costs threaten economic recovery warns Chamber
SPIRALLING fuel prices threaten to damage the economic recovery in Coventry and Warwickshire, business leaders in the area have said.
Prices at the pumps have risen to new highs since the turn of the year because of duty, VAT and rising international oil prices.
Many firms are now I the uncomfortable position of trying to resist passing on the increases to their customers. However, small firms in particular, are likely to find this difficult.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce said the Government must follow through on its promise to look at a fuel stabiliser.
This would see duty rise and fall depending on oil prices and help to keep costs at the pump more consistent than in recent years.
“It’s hurting business and it’s hurting consumers too. We cannot afford for prices to keep rising, and for Governments of all colours to simply shrug their shoulders and blame it on the international prices,” said Ms Bennett.
“We know international oil prices are volatile and we can’t change that but the Government has control of duty and that is where it can make a difference to businesses across the country, including here in Coventry and Warwickshire.
“When times are tough and the private sector is being asked to take on more people to make up for the jobs being lost in the public sector, spiralling fuel costs are real burden.”
She said haulage firms would be the first to be affected but this would eventually filter down through the whole of industry.
“At a time when the Government would like to curb inflationary pressures it seems ludicrous to allow pump prices to keep rising because that only serves to accentuate the problem,” added Ms Bennett.
“We cannot afford for an empty promise – we need action to address this issue or it has the potential to throw the economic recovery off course.”
To make matters worse, she said the sustainable energy infrastructure was not in place that could help offset the rises.
