UK Charities and Businesses Grapple with Soaring Diesel Costs
Rising fuel prices, exacerbated by global events, are straining the budgets of non-profits and private companies, forcing difficult decisions.
Charities and businesses in the North East of England are reporting significant difficulties in meeting increased operational costs due to the surging price of diesel. The average cost of diesel has surpassed £2 per liter in the UK for the first time, according to the RAC motoring group.
The increase in fuel prices is attributed to disruptions in oil production and transportation stemming from the Iran war, which has impacted global supply chains.
Daft as a Brush, a cancer charity based in Newcastle, stated that it can no longer afford to transition its fleet of 30 vans to electric vehicles as planned. The charity, which covers 600,000 miles annually to transport cancer patients to appointments, is now spending an additional £5,000 per month on diesel, bringing its total monthly fuel expenditure to £15,000. Scott Jobson, head of income generation for the charity, noted that these funds are being diverted from donations and that they receive no discounts at the pump. "At the pump, what you see is what we pay," Jobson said, adding that the situation "stunts our growth and development."
Volunteer driver Davey Hall described the impact of the price hikes, recalling that filling a tank from half-full, which previously cost £40-£45, now costs £94.
Similarly, Teesside Minibus Hire in Middlesbrough is experiencing financial pressure. Director Billy Johnson explained that the company operates on multi-year contracts with schools and businesses, with fuel costs often fixed at the time of signing. While the company is not yet operating at a loss, Johnson warned that the situation is becoming "not worthwhile or sustainable."
The company has attempted to pass on increased costs to customers for services like day hires. However, Johnson noted that customers are also contending with inflation and may be unwilling to absorb higher prices, leading some to seek out cheaper, unlicensed hire services.
Johnson expressed concern for the company's long-term viability if fuel prices do not decrease, stating, "Long term, probably not."
In May, the UK government extended a fuel duty freeze until the end of the year, capping the tax at 5 pence per liter for both petrol and diesel. This measure was initially introduced in 2022 following Russia's invasion of Ukraine, which also contributed to rising fuel prices. The government has asserted that there are no concerns regarding diesel shortages and that the country maintains a "diverse and resilient supply."