The Impact Of High Fuel Costs

Fuel costs are rising to record highs every week, and it's the very high cost of fuel which is going to threaten companies and the economic recovery as a whole. 


One scary piece of information the BBC News website featured the other day was that it now takes up to £75,000 a year in diesel to fill a HGV. If your a manufacturer or transport company of medium size, say with 10 HGV's, three quarters of a million pounds is way too much to be spending on fuel. This is the reason why your bread, meat and cereal is costing you more!

• Food costs are now at all time highs worldwide
• Energy price rises are set to add £560 million to household costs this year
• Wholesale goods and raw material prices are rising fast

Because fuel plays such a massive part in every size of economy, the recovery of these economies depends hugely on the price of oil. But every step every business and household takes to get out of the mire, it's offset every time oil and fuel goes up.

So what are we to do? The public needs to put as much pressure on the government to do something about the costs. The situation I feel is coming to a head, and I think David Cameron sees this, hence his recent comments about a fuel stabiliser. But we have to keep this issue on the minds of the people in government to make sure it doesn't fade away. On a personal level, we all need to be looking at ways to streamline our spending to lessen the impact of the high fuel costs, and the same goes with businesses. 

The end result by the end of the year could be plenty of small to medium size businesses closing their doors due to unsustainable costs.