A South West scaffolding firm that has seen its diesel bill rocket by 25% is joining calls for urgent action on the national fuel crisis.
Apex Scaffolding - based in Exeter - is having to swallow the costs needed to run its fleet of three HGVs, nine LGVs (7.5t) and 16 smaller vans and cars.
And the latest hike comes on top of the 19% increase it absorbed in 2021.
Matthew Cousins, Commercial Director said that the firm, which currently has projects from Helston to Bristol, has no alternative but to use HGVs to transport its equipment to and from sites.
He said: "We have to absorb these costs on existing long-term contracts or those which were agreed before these price hikes because we cannot just go back on our agreements.
"Our profit margins are being squeezed all the way through. Because of the cost of living crisis, we have increased our wages to help our staff and though we are not an energy intensive business, our electricity bill has also increased.
"We would like to see help with our distribution costs whether that's a duty cut or access to industrial diesel in bulk that could reduce our costs."
Mr Cousins said that the issue is a priority for fellow members of the National Access & Scaffolding Confederation.
And he warned that the problem, which is is being felt across all logistics and distribution businesses will eventually impact productivity.
"As this continues, we will need to pick and choose projects based on the costs of getting the equipment too and from site.
"It is a crazy situation to be in, particularly on the back of the pandemic which halted so many construction projects. We have seen those projects that had been stalled now being released but they are now facing a big rise in the cost of raw materials.
"Those projects that were costed 12-18 months ago are now 12-14% more expensive and developers are now wondering if they can afford to do what they planned."
The average price of a litre of petrol at UK forecourts reached a new record of 183.2p on Thursday June 9, according to data firm Experian.
That was an increase of 0.9p compared with Wednesday.
This means the average cost of filling a typical 55-litre family car is £100.76.
The average price of a litre of diesel on Thursday was a record 188.8p.
Fuel duty was cut by 5p in the March 2022 Spring Statement but has 'done little to nothing' to combat the continual rises in wholesale petrol costs, said Richard Marsh, Chief Executive of Exeter Chamber.
He has echoed the RAC in calling for ‘radical government intervention’.
Mr Marsh said: “It is staggering to hear that the average family petrol car is now costing over £100 to fill, however, the impact on businesses is set to be even greater - yet there is no support offered by central government for individuals or the business community.
“With VAT soaring as oil prices rise, taking tax up to 90p a litre, the increasing price at the pumps is and will have a huge financial impact on businesses across Exeter and the rest of the country. We urge Mr Sunak to reduce VAT further or cap fuel prices at a reasonable level in order to help those that have no other option than to drive.
“We’ve spoken to a number of businesses from various sectors across Exeter who have already felt the financial squeeze due to what the RAC have declared as a national fuel crisis
“The events industry – one of the most impacted sectors of the pandemic should be celebrating what should be their ‘come back year’, are now being faced with yet another crisis as the cost of living continues to cripple households and in turn all the businesses involved.
“Exeter Chamber calls for immediate action from the Chancellor to address the fuel crisis which in conjunction with the rises in gas and electricity is having a devastating financial impact on businesses and household.”
