Sector still 'fragile' amid further fuel cost rises

By Rebecca Weller contact

- Last updated on GMT

Sector still fragile: more than half of operators fear businesses will not survive next 12 months amid rising fuel costs (Credit: Getty/Image Source)
Sector still fragile: more than half of operators fear businesses will not survive next 12 months amid rising fuel costs (Credit: Getty/Image Source)

Related tags: Finance, Legislation, Petroleum

Continuously rising fuel prices have been feared to further impact supply chain issues and increasing food costs across the sector as petrol prices once again rocketed earlier this week.

The average price of petrol had risen to 180.73p per litre on Tuesday (7 June), while the average cost of diesel rocketed by almost 1.5p to 186.57p per litre in the biggest daily jump in fuel cost for 17 years, according to the RAC.

The Bath Pub Company managing director Joe Cussens said​: “The main impact will be the knock-on effect on prices charged by our suppliers.

Record high 

“If the cost of production and transport of their goods goes up due to higher diesel costs, then it’s likely that they’ll pass this on to us. We’ve increased our prices already and will no doubt do so again in the future.”

Largely attributed to Russia’s invasion of Ukraine, fuel costs have continuously hit record highs for some weeks, with the RAC having claimed the cost of filling a 55-litre family car stood at £102.61 as of Tuesday.

This comes as the sector​ has already experienced severe supply chain issues on top of “apocalyptic​” food price increases​, according to Bank of England Governor Andrew Bailey, so far this year with more than half of operators unsure if they will survive the next 12 months according to a recent survey​ by the Night-Time Industries Association (NTIA).

Furthermore, consumer spending has remained low, according to the latest Barclaycard​ Barometer, as households and businesses alike have suffered under the cost-of-living crisis​.

Untenable operating costs 

NTIA CEO Michael Kill said: “The situation is worsening day by day, with operating costs becoming untenable.

“We are starting to see the impact on customers through slowing tickets sales, bookings and frequency of visit.

“Our industry is still extremely fragile; many will struggle to survive another crisis.”

 

Related topics: Legislation

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