Fuel costs have risen sharply in recent weeks, with RAC data showing petrol is up by around 25p per litre and diesel by as much as 50p per litre since the start of the year.
Pump prices, which stood at roughly 135p per litre for petrol in January, climbed to around 158p by mid‑April, while diesel approached 191p per litre over the same period.
The RAC said most of the increase occurred over a six‑week period from late February to mid‑April, making it one of the fastest fuel cost rises in recent years as tensions in the Middle East continued to disrupt global markets.
The surge has added further strain for pub operators already working to tight margins, from rural venues facing reduced footfall to ongoing caution in consumer spending.
At the same time, suppliers have increasingly begun introducing delivery surcharges, most commonly citing rising fuel costs.
Maintaining service
Watford-based wholesale bakery firm, Seven Seeded Artisan Bakery, which supplies a number of pubs, recently introduced a £1 delivery surcharge per order, effective from Friday 24 April.
In correspondence sent to clients, seen by The Morning Advertiser (The MA), the bakery attributed the fee to the “ongoing disruption around the Strait of Hormuz”.
It said the surcharge was temporary and would be reviewed regularly, adding it allowed the company to maintain service levels and margins.
The MA contacted Seven Seeded for comment but had not received a response at the time of publication.
Other suppliers have also begun adjusting their trading terms. Warwickshire‑based butchers Aubrey Allen increased the threshold for its minimum order earlier this month after fuel prices soared by 30%.
The family butcher stressed it was doing everything it could to provide stability for customers.
Frisco Group managing director Heath Ball told The MA pubs were facing a “tidal wave” of cost pressures coming from every direction.
Tight margins
“Every day another supplier tells me about fuel costs and how they’ve added a delivery charge to help their costs,” he said, adding that while suppliers often promise such charges will be removed when prices fall, this rarely happens.
“Making a profit feels like squeezing blood from a rock. The only positive I can see is fewer people travelling abroad this summer which hopefully will fill our beer gardens.”
On top of this, industry leaders last week warned food inflation and CO2 supply shortages were becoming an increasing concern as the war in Iran continues.
SALT Brewery managing director Edd Simpson told The MA the business has chosen to absorb these additional costs for now, but warned this was becoming “increasingly difficult”.
He said: “We are already seeing surcharges being introduced by wholesalers, which are impacting our pubs and, for now, are being absorbed. As a brewer, we are also facing rising fuel and distribution costs.
“With ongoing instability in Iran and the resulting pressure on global energy markets, we expect these cost pressures to become more pronounced, and we will need to keep their impact on the bottom line under close review.”
